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HB1162 • 2026

INSURANCE CLAIMS: Provides relative to the verification of contractors

INSURANCE CLAIMS: Provides relative to the verification of contractors

Healthcare
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Brian Glorioso
Last action
2026-05-28
Official status
Sent to Governor
Effective date
Not listed

Plain English Breakdown

The bill text does not explicitly limit causes of action related to personal injury or bodily injury claims, only those concerning verification delays and separate suits against representatives.

Insurance Claims and Contractor Verification

This bill requires insurance companies to verify the licensing status of contractors before issuing payments for repairs or restorations, provides a safe harbor for delays due to verification issues, and limits causes of action against insurers.

What This Bill Does

  • Requires insurance companies to check if a contractor is licensed through the Louisiana State Licensing Board's website before paying them for property damage claims.
  • Allows insurance companies to delay payments without penalties if they cannot verify a contractor’s license status within five business days and notify the insured of this delay.
  • Prevents insurers from being sued separately by their representatives for delays in payment due to verification issues.

Who It Names or Affects

  • Insurance companies that issue property damage insurance policies.
  • Contractors who are named payees on checks or drafts intended for repairs or restorations of immovable property.
  • Insured individuals whose claims involve contractor payments.

Terms To Know

Safe Harbor
A legal protection that shields insurance companies from penalties if they delay payments due to issues verifying a contractor's license status.
Good Faith Duty
The obligation of an insurer to act honestly and fairly in dealing with the insured, including prompt payment of claims when there is no reasonable dispute.

Limits and Unknowns

  • Does not specify what happens if a contractor's license cannot be verified after five business days.
  • Does not provide details on how insurers should document their verification attempts or notify insured individuals.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Filed

Plain English: The amendment requires insurers to verify the license status of contractors through a state website before paying claims for repairs or restorations, with protections against penalties if verification fails.

  • Insurers must check the contractor's license on the Louisiana State Licensing Board for Contractors' website before making payments for property repairs or restorations.
  • If an insurer cannot verify a contractor’s license and documents their attempt to do so, they are not penalized for delays in payment.
  • Misrepresenting facts about insurance coverage is considered a breach of duty by the insurer.
  • The amendment limits causes of action against insurers under certain conditions but does not provide full details on these limitations.
Adopted

Plain English: The amendment changes the time limit for verifying contractors from thirty days to a period defined by specific Louisiana Revised Statutes.

  • Changes 'within thirty days' to 'pursuant to R.S. 22:1892(B) or R.S. 22:1892.2, as applicable,' in two places of the bill.
  • The exact details and requirements under R.S. 22:1892(B) and R.S. 22:1892.2 are not provided here, so more context is needed to understand fully how this change will affect the verification process.
Filed

Plain English: The amendment to HB1162 involves agreeing with changes made by the Senate regarding insurance claims and contractor verification.

  • The House agrees to adopt amendments proposed by the Senate related to verifying contractors for insurance claims.
  • The official text does not provide specific details about what the Senate amendments entail, only that the House is concurring with them.
Adopted

Plain English: The amendment adds new provisions to insurance claims laws regarding breaches of good faith duty by insurers and limits on causes of action.

  • Adds a new section (I)(4) and (L) to R.S. 22:1892, which defines when an insurer's actions constitute a breach of their duties in handling insurance claims.
  • Inserts language that specifies conditions under which insurers are not liable for certain breaches of good faith duty, such as when there is a good faith dispute about liability or medical causation.
  • Limits the creation of causes of action against insurers and their representatives based on these new provisions.
  • The exact impact of these changes on existing insurance claims processes may not be fully clear without additional context.
Adopted

Plain English: The amendment changes the word 'Subsection' to 'Paragraph' in a specific part of the bill.

  • Changes the term 'Subsection' to 'Paragraph' on page 2, line 20.
  • This amendment only makes a minor textual change and does not provide enough information about the broader context or impact.
Adopted

Plain English: The amendment changes the deadline for an insured person to verify a contractor and modifies how certain sections of law are referenced.

  • Changes the time limit for an insured person to verify a contractor from what was originally stated to within thirty days.
  • Modifies the reference in the bill text, changing 'to R.S. 22:1892(B) or' to 'except as provided in'.
  • Updates another part of the bill by replacing 'R.S. 22:1892(B)' with 'this Section'
  • The amendment text does not provide full context, so some details about how these changes will affect the overall bill are unclear.
Draft

Plain English: The amendment changes the deadline for an insured person to verify a contractor and modifies how certain sections of law are referenced.

  • Changes the time limit for an insured person to verify a contractor from what was originally stated to within thirty days.
  • Modifies the language on page 1, line 17, by removing a reference to R.S. 22:1892(B) and replacing it with 'except as provided in'.
  • Updates the text on page 2, line 4, changing 'R.S. 22:1892(B)' to 'this Section'
  • The amendment text does not provide full context about what was originally there before these changes were made.

Bill History

  1. 2026-05-28 H

    Sent to the Governor for executive approval.

  2. 2026-05-27 S

    Signed by the President of the Senate.

  3. 2026-05-27 H

    Enrolled and signed by the Speaker of the House.

  4. 2026-05-26 H

    Read by title, roll called, yeas 97, nays 0, Senate amendments concurred in.

  5. 2026-05-25 H

    Scheduled for concurrence on 05/26/2026.

  6. 2026-05-19 H

    Received from the Senate with amendments.

  7. 2026-05-18 S

    Rules suspended. Senate floor amendments read and adopted. Read by title, passed by a vote of 35 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

  8. 2026-05-11 S

    Reported with Legislative Bureau amendments which were read and adopted. Read by title and passed to third reading and final passage.

  9. 2026-05-07 S

    Committee amendments read and adopted. Read by title and referred to the Legislative Bureau.

  10. 2026-05-06 S

    Reported with amendments.

  11. 2026-04-27 S

    Read second time by title and referred to the Committee on Insurance.

  12. 2026-04-22 S

    Received in the Senate. Read first time by title and placed on the Calendar for a second reading.

  13. 2026-04-21 H

    Read third time by title, amended, roll called on final passage, yeas 99, nays 0. Finally passed, title adopted, ordered to the Senate.

  14. 2026-04-20 H

    Scheduled for floor debate on 04/21/2026.

  15. 2026-04-15 H

    Read by title, ordered engrossed, passed to 3rd reading.

  16. 2026-04-14 H

    Reported favorably (12-0).

  17. 2026-04-01 H

    Read by title, under the rules, referred to the Committee on Insurance.

  18. 2026-03-31 H

    Read by title. Lies over under the rules.

Official Summary Text

INSURANCE CLAIMS: Provides relative to the verification of contractors

Current Bill Text

Read the full stored bill text 
ENROLLED
2026 Regular Session
HOUSE BILL NO. 1162
BY REPRESENTATIVES GLORIOSO AND CHASSION
1 AN ACT
2 To amend and reenact R.S. 22:1892(A)(1) and (I)(2)(a) and (3) and to enact R.S.
3 22:1892(I)(4) and (L), relative to the payment and adjustment of insurance claims;
4 to require insurers to verify contractor licensing before issuing certain payments; to
5 provide for a safe harbor from penalties for payment delays related to contractor
6 verification; to provide for breach of good faith duty; to provide for limitations on
7 causes of action; and to provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 22:1892(A)(1) and (I)(2)(a) and (3) are hereby amended and
10 reenacted and R.S. 22:1892(I)(4) and (L) are hereby enacted to read as follows:
11 §1892. Payment and adjustment of claims; policies other than life and health and
12 accident; good faith duty; breach of good faith duty; vehicle damage claims;
13 extension of time to respond to claims during emergency or disaster;
14 penalties; arson-related claims suspension; definitions
15 A.(1) All insurers issuing any type of contract, other than those specified in
16 R.S. 22:1811, 1821, and Chapter 10 of Title 23 of the Louisiana Revised Statutes of
17 1950, shall pay the amount of any claim due any insured within thirty days except
18 as provided in R.S. 22:1892.2, as applicable, after receipt of satisfactory proofs of
19 loss from the insured or any party in interest. The insurer shall notify the insurance
20 producer of record of all such payments for property damage claims made in
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
HB NO. 1162 ENROLLED
1 accordance with this Paragraph. However, if a contractor is a named payee on a
2 check or draft intended for the repair or restoration of immovable property, the
3 insurer or its adjuster shall first verify the contractor's license status through the
4 website or portal of the Louisiana State Licensing Board for Contractors. The
5 amount of any claim due shall be paid pursuant to this Section or R.S. 22:1892.2, as
6 applicable, after receipt of satisfactory proof of loss and, if applicable, completion
7 of the verification required by this Paragraph.
8 * * *
9 I.(1)
10 * * *
11 (2) Any one of the following acts, if knowingly committed or performed by
12 an insurer or representative of the insurer, constitutes a breach of the insurer's duties
13 imposed in Paragraph (1) of this Subsection:
14 (a) A misrepresentation of pertinent facts or insurance policy provisions
15 relating to any coverages at issue or a misrepresentation of relevant insurance policy
16 provisions.
17 * * *
18 (3) The provisions of this Subsection shall not create a cause of action
19 against an insurer by the insured or his assignee in a claim for personal injury or
20 bodily injury when any of the following conditions are present:
21 (a) There is a good faith dispute as to liability.
22 (b) There is a good faith dispute as to medical causation for the injuries
23 alleged by the claimant.
24 (c) An offer has not been presented by or on behalf of a third-party claimant
25 within the applicable policy limits, and the insurer has been given at least thirty days
26 to respond.
27 (4) The provisions of this Subsection shall not create a separate cause of
28 action against a representative of the insurer distinct and apart from the cause of
29 action against the insurer.
30 * * *
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
HB NO. 1162 ENROLLED
1 L.(1) Notwithstanding any other provision of this Section or of R.S.
2 22:1892.2 to the contrary, an insurer shall not be deemed to have acted in bad faith,
3 nor shall that insurer be subject to any penalty or attorney fees, for a delay in
4 transmitting payment if that delay is directly and reasonably attributable to the
5 insurer's inability to verify a contractor's license through the portal or website of the
6 Louisiana State Licensing Board for Contractors.
7 (2) To qualify for the safe harbor provided in this Subsection, the insurer
8 shall do all of the following:
9 (a) Document the attempt to verify the license in the claim file, including the
10 date, time, and result of the search.
11 (b) Provide written notice to the insured within five business days of the
12 failed verification attempt, stating that payment is being withheld or delayed pending
13 verification of the contractor's license status as required by Paragraph (A)(1) of this
14 Section.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.