INSURANCE: Provides relative to certain insurer contractual payments and prescriptive period

HLS 26RS-2695 ENGROSSED
2026 Regular Session
HOUSE BILL NO. 1117
BY REPRESENTATIVE FIRMENT
INSURANCE: Provides relative to certain insurer contractual payments and prescriptive
period
1 AN ACT
2 To amend and reenact R.S. 22:868(B), relative to certain insurer contractual payments; to
3 provide for prescriptive periods; to provide for payment under terms of contracts; to
4 provide for effectiveness; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 22:868(B) is hereby amended and reenacted to read as follows:
7 §868. Limiting actions; jurisdiction; venue
8 * * *
9 B. No insurance contract delivered or issued for delivery in this state and
10 covering subjects located, resident, or to be performed in this state, or any health and
11 accident policy insuring a resident of this state regardless of where made or
12 delivered, shall contain any condition, stipulation, or agreement limiting right of
13 action against the insurer to a period of less than twenty-four months next after the
14 inception of the loss when the claim is a first-party claim, as defined in R.S. 22:1692,
15 and arises under any insurance classified and defined in R.S. 22:47(6), (10), (11),
16 (12), (13), (15), and (19) or to a period of less than one year from the time when the
17 cause of action accrues in connection with all other insurances unless otherwise
18 specifically provided in this Code. An insurer's payment under the terms of its
19 contract shall not be considered the acknowledgment of a debt or otherwise serve to
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
HLS 26RS-2695 ENGROSSED
HB NO. 1117
1 extend the contractually defined prescriptive period which begins running at the
2 inception of the loss.
3 * * *
4 Section 2. This Act shall become effective upon signature by the governor or, if not
5 signed by the governor, upon expiration of the time for bills to become law without signature
6 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
7 vetoed by the governor and subsequently approved by the legislature, this Act shall become
8 effective on the day following such approval.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 1117 Engrossed 2026 Regular Session Firment
Abstract: Clarifies an insurer's payment from being considered as acknowledgment of a
debt or to serve as an extension of the contractually defined prescriptive period of
its contract.
Present law prohibits insurance contracts from containing any condition, stipulation, or
agreement that limits right of action against the insurer to a period of less than 24 months
next after the inception of the loss when the claim is a first-party claim, as defined in present
law (R.S. 22:1692) and arises under any insurance classified and defined in present law
(R.S. 22:47(6), (10)-(13), (15), and (19)).
Present law also provides that the aforementioned prohibition shall also not apply to
insurance contracts against the insurer for a period of less than 1 year from the time when
the cause of action accrues in connection with all other insurances unless otherwise specified
in present law.
Proposed law retains present law.
Proposed law clarifies that an insurer's payment under the terms of its contract shall not be
considered as the acknowledgment of a debt nor does the payment interrupt prescription.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 22:868(B))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.