Louisiana has enacted House Bill 1162 which requires insurers to verify a contractor’s license status through the website or portal of the Louisiana State Licensing Board for Contractors if the contractor is a named payee on a check or draft for the repair or restoration of immovable property. The bill provides safe harbor from penalties arising from a delay in transmitting payment if such delay is caused by an insurer’s inability to verify a contractor’s license after following the provided procedures. In addition, the bill establishes limitations for insureds bringing a cause of action against an insurer in personal injury or bodily injury claims.

For more information, please see House Bill 1162.