Insurance reform group supports six bills filed this legislative session

Updated: Apr. 20, 2021 at 8:10 PM CDT
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LAKE CHARLES, La. (KPLC) - It’s a continuing problem: people still waiting for insurance to pay enough to rebuild their homes since the hurricanes and winter storms.

“My insurance company wouldn’t do the roof. They only sent money for about half of the roof,” said Dana Frye, who ultimately received a donated roof.

An insurance reform group called Real Reform Louisiana supports several bills proponents say will help consumers in future hurricanes as they try to recover.

Real Reform spokesman Eric Holl says hurricane survivors have been in what they call ‘insurance purgatory.’

“Insurance purgatory is what we call these endless delays, this stream of adjusters,” Holl said.

Holl says they favor six bills they think will help consumers. He says one would help stop companies from sending one adjuster after another.

“House Bill 469 specifically deals with that by telling insurance companies after three adjusters, they need to get the policyholder’s permission to send a new adjuster,” Holl said. “These insurance companies are using this constant churn of new adjusters as a way to wear people down and frustrate them and delay and delay and delay settling the claim or paying the claim in hopes that people will just get desperate and give up and take less money than they are owed.”

Holl says they are also working for stronger penalties against companies that break rules or fail to negotiate in good faith.

“If they start realizing there will be consequences to how they’re treating people right now, that legislation will be changed, that the rules will be tightened up, I think that will hopefully incentivize them to start cleaning up their act and realize they’ve pushed people too far.”

The bills will first be heard in legislative insurance committees to decide if they will move forward in the process of becoming law.

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