Senate vote on Geymann’s insurance bill unanimous

Jim Beam

The state Senate Monday approved legislation by Rep. Brett Geymann, R-Moss Bluff, that deals with insurance adjusters’ reports and penalties for failure of companies to make a payment or written offer to settle claims.

The vote was 38-0, which sends the measure back to the House to either agree with or reject changes made by the Senate. The House earlier approved the bill 96-0. 

In previous testimony, Geymann said many Southwest Louisiana homeowners have had to hire private adjusters or structural engineers to get adequate damage estimates. He added that others, including the elderly, can’t afford those steps or lack the ability to negotiate.

Robin Baudoin of Sulphur, who lost her two-story home in Hurricane Laura, earlier testified in support of Geymann’s legislation. She said she has had four different adjusters and twice had to hire her own adjusters and structural engineers. That was because her company, she said, insisted her home could be repaired.

“I have done everything they asked me to do,” Baudoin said. “They’ve avoided paying me, but not just me, also my neighbors and friends.”

The first part of Geymann’s legislation provides that an insurance company shall issue a copy of the insurer’s field adjuster report to the insured within 15 days of receiving a request from the policyholder.

Current law says failure to make a claims payment within 30 days after receipt of satisfactory written proof of loss subjects the insurance company to a payment of 50 percent damages on the amount found to be due from the company, or $1,000, whichever is greater.

Geymann’s original bill proposed to increase that $1,000 penalty to $10,000. A Senate committee amendment lowered the penalty to $2,500 or 50 percent of the difference between the amount paid and the amount found to be due, as well as reasonable attorney fees, whichever is greater. The amendment also says any penalties, if awarded, can’t be used by the insurance company in computing the setting of rates.

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Robin Baudoin rode out Hurricane Laura inside a bathroom at her home at 2046 Louise St. in Sulphur. She said she could hear her roof being torn off during the storm and her chimney being slammed in the courtyard.

Kirk Meche

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