Pursuant to La. R.S. 22:1982 [click HERE to view the full statute], insurance companies must pay or make a settlement offer on any claim due to an insured within 30 days after receipt of satisfactory proofs of loss.  If there is a presidentially or gubernatorially declared disaster, the time period may be extended to 60 days.  There are substantial penalties a homeowner or business owner can levy upon their insurance company for a failure to timely pay.  Currently, Louisiana law allows for a penalty of 50% of the amount due plus reasonable attorneys fees and costs if the failure is found to be “arbitrary, capricious or without cause.” Id.  The Louisiana Supreme Court has stated an insurance company cannot stonewall an insured simply because the insured is unable to prove the exact extent of his damages.  The insurance company must tender any undisputed amount.

This is one of the few instances where a claimant can collect attorneys fees under Louisiana law.  This is a power tool in your arsenal to push back against your insurance company if they are not treating you fairly and are in violation of this law. Contact us today if you believe your insurance company has not acted in good faith in violation of this law!




About the author: Sye J. Broussard is a Lake Charles native who went to ICCS, OLQH, and Barbe High School.  He currently practices law all across the I-10 corridor from Lake Charles to New Orleans. When not helping clients, Sye enjoys spending time with his family and inshore/offshore fishing.

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