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Read. Follow. Verify.Louisiana House Bill 577 adjusts insurer penalty calculations for arbitrary claim denials
Last action · March 31, 2026: Read by title, returned to the calendar.Sponsor: Brian Glorioso
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What This Bill Proposed
Louisiana House Bill 577 updates how penalty damages are calculated when insurers fail to pay claims in a timely manner without probable cause, allowing a penalty of up to 50 percent of the amount due or the difference after partial payment. The bill applies to property and non-life insurance policies governed by R.S. 22:1892.
Policyholders disputing delayed or unpaid claims may see altered statutory penalty caps when insurers act arbitrarily, affecting potential recoveries beyond the base claim amount.
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
insurers
Insurers face revised statutory penalty parameters up to fifty percent for arbitrary and capricious claim handling.
insured policyholders
Policyholders pursuing disputed claims may be awarded penalty damages calculated under the updated statutory cap.
Key Facts
- Authorizes a penalty of up to fifty percent of the amount found to be due from an insurer to an insured when payment failure is arbitrary, capricious, or without probable cause.
- Applies similarly when a partial payment or tender has been made, calculating the penalty as up to fifty percent of the difference between the amount paid and the amount found to be due.
- Includes provisions for proven economic damages sustained as a result of the breach, or one thousand dollars, whichever is greater, along with reasonable attorney fees and costs.
- Prohibits insurers from using awarded penalties in computing past or prospective loss experience for rate setting or rate filings.
Frequently Asked Questions
What triggers the insurer penalty under this bill?
Can insurers use these penalties to raise future rates?
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News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · passed the House.
Procedural history
8 actions- Mar 31, 2026HouseIntroducedRead by title, returned to the calendar.
- Mar 30, 2026HouseScheduled for floor debate on 03/31/2026.
- Mar 26, 2026HouseFloorRead by title, ordered engrossed, passed to 3rd reading.
- Mar 25, 2026HouseCommitteeReported favorably (10-6).
- Mar 9, 2026HouseIntroducedRead by title, under the rules, referred to the Committee on Insurance.
- Feb 27, 2026HouseFirst appeared in the Interim Calendar on 2/27/2026.
Show 2 earlier actions
- Feb 26, 2026HousePrefiled.
- Feb 26, 2026HouseCommitteeUnder the rules, provisionally referred to the Committee on Insurance.
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Connected Entities
Sources
www.legis.la.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 50)
- Controversy40Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz20Current news / social attention level
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