RS 37:2159.1 – Home improvement contracting; prohibited acts; property insurance
The following acts are prohibited by persons or companies performing home improvement contracting services:
(1) Interpreting insurance policy provisions regarding coverage or duties under an insured’s property insurance policy. A contractor shall be considered to have violated the provisions of this Paragraph if a person working on behalf of the contractor including but not limited to a compensated employee or a nonemployee who is compensated by the contractor violates the provisions of this Paragraph.
(2) Adjusting a property insurance claim on behalf of an insured as an adjuster, as defined in R.S. 22:1661. A contractor shall be considered to have violated the provisions of this Paragraph if a person working on behalf of the contractor including but not limited to a compensated employee or a nonemployee who is compensated by the contractor violates the provisions of this Paragraph.
(3) Providing an insured with an agreement authorizing repairs without providing a good faith estimate of the itemized and detailed costs of services and materials for repairs undertaken pursuant to a property damage claim. A contractor shall be considered to have violated the provisions of this Paragraph if a person working on behalf of the contractor including but not limited to a compensated employee or a nonemployee who is compensated by the contractor violates the provisions of this Paragraph. A contractor does not violate this Paragraph if, as a result of the insurer adjusting a claim, the actual cost of repairs differs from the initial estimate.
(4) Sharing in any legal fee earned by an attorney.
(5) Requiring an insured to sign an attorney representation agreement on behalf of an attorney.
(6) Accepting a fee, commission, or other valuable consideration, regardless of form or amount, in exchange for a referral by the person or company to an attorney or law firm.
(7)(a) Accepting an assignment of any rights, benefits, proceeds, or causes of action of an insured under a property insurance policy prior to completing the work described in the home improvement contract and the property insurer conducting its initial examination of the damage caused by the covered peril. The assignment of any rights, benefits, proceeds, or causes of action shall be limited to the scope of work and fees provided in the home improvement contract, which shall comply with the provisions of R.S. 37:2159.
(b) For the purposes of this Paragraph, home improvement contracting services shall include temporary repair, mitigation, reconstruction, or other repair of damage caused by a peril covered under a first-party property insurance policy.
(c) The provisions of this Paragraph shall not be interpreted to limit the right of a person performing home improvement contracting services to perfect an otherwise valid lien on the property, as provided by law.
Acts 2022, No. 734, §1; Redesignated from R.S. 37:2175.3.