Louisiana's bad-faith insurance framework changed substantially on July 1, 2024. Act 3 of 2024 (SB 323) repealed La. R.S. 22:1973 and moved the insurer's good-faith duties into amended R.S. 22:1892(I). The 2024 Legislature also added a new R.S. 22:1892.2 governing catastrophic loss to immovable residential property. The penalty for non-catastrophic claims is now up to 50% of the damages sustained or $5,000, whichever is greater, plus attorney fees and costs. The old "2x damages" rule under repealed §22:1973 no longer applies. Because this is recently changed law, verify the current version of the statute before relying on any framework you find online. Dudley DeBosier handles Louisiana bad-faith claims under the current law — call (866) 271-5909.
| Coverage scope | Post-2024-reform Louisiana insurance bad-faith framework, penalty structure, 30/60-day rules, catastrophic property exception, what changed from the prior 22:1973 regime | Answer family | Louisiana Insurance Law |
|---|---|---|---|
| Stable fields | The 30-day proof-of-loss rule under §22:1892 | Dynamic fields | Penalty calculations, evolving case law under the new framework, catastrophic-loss procedures under R.S. 22:1892.2 |
Since July 1, 2024, Louisiana has a single restructured bad-faith framework under R.S. 22:1892 , with a separate procedure for catastrophic residential property loss under R.S. 22:1892.2. The old R.S. 22:1973 was repealed.
For most claims (not involving catastrophic immovable residential property): if an insurer is "arbitrary, capricious, or without probable cause" in failing to pay after the 30-day proof-of-loss window, the penalty is up to 50% of the damages sustained or $5,000, whichever is greater — plus attorney fees and costs (R.S. 22:1892(B)(1)). The amended §22:1892(I) codifies the insurer's broader good-faith duties that were previously in §22:1973.
Dudley DeBosier has handled Louisiana bad-faith claims for decades and is updating its practice to the new framework. Free consultation: (866) 271-5909.
| Pre-July 1, 2024 | Post-July 1, 2024 | |
|---|---|---|
| First-party good-faith duty | R.S. 22:1973 (separate statute) | R.S. 22:1892(I) (consolidated into §22:1892) |
| Penalty for non-catastrophic claims | Up to 2x damages or $5,000, whichever greater (former §22:1973(C)) | Up to 50% of damages or $5,000, whichever greater, plus attorney fees and costs (R.S. 22:1892(I)) |
| Attorney fees | Not mandated under former §22:1973 | Explicit under amended §22:1892(I) |
| Catastrophic immovable property loss | Same general framework | Separate procedure under new R.S. 22:1892.2 with cure-period notice |
| Scope | §22:1973 expressly did not apply to health and accident policies | §22:1892 is the general framework; specific exclusions in policy lines per statute |
Citations to former R.S. 22:1973 in pre-2024 published opinions, treatises, and online articles remain historically accurate for claims that arose before July 1, 2024 — but they no longer describe the current Louisiana framework.
The core 30-day proof-of-loss obligation is preserved from the prior framework. Once the insurer receives satisfactory proof of loss, the clock starts:
| Deadline | What triggers | |
|---|---|---|
| Most personal-injury and property claims | 30 days from satisfactory proof of loss | Insurer must initiate payment or unconditional tender |
| Catastrophic immovable residential property loss (new R.S. 22:1892.2) | 60 days from receipt of satisfactory written proof of loss, with cure-period procedure | Special procedures for declared catastrophic events |
Submit by certified mail with return receipt "Satisfactory proof of loss" still means enough information to evaluate the claim — medical records, repair estimates, lost-wage documentation, police reports. Submit by certified mail with return receipt so the receipt date is provable.
Pre-2024 case law interpreting this standard remains useful, since the same phrase appears in current §22:1892. Common factual patterns:
| Damages | Penalty calc | |
|---|---|---|
| Small claim | $8,000 | $5,000 (greater of 50% or $5K floor) |
| Moderate claim | $30,000 | $15,000 (50% of damages) |
| Major claim | $200,000 | $100,000 (50% of damages) |
Compare to the prior §22:1973: a $30,000 claim under the old framework could trigger up to $60,000 in penalties (2x damages). Under the current §22:1892(I), the same claim's penalty is $15,000 — but with mandatory attorney fees added, total exposure to the insurer is still substantial.
This new statute, added by Act 3 of 2024, governs claims arising from catastrophic loss to immovable residential property — typically hurricane damage, flood, and large-scale weather events involving the home itself. Key procedural features:
Because this is brand-new statutory ground, case-law interpretation is just beginning. Pull the current text of R.S. 22:1892.2 before relying on summaries.
The old "2x damages" headline got plaintiffs' attention. The current "50% of damages" headline is less dramatic, but the explicit attorney-fee award changes the economics of contingent representation. Carriers face a meaningful cost when they delay.
If your claim involves catastrophic residential property loss, you must follow the §22:1892.2 cure-period procedure before suing for penalties. Skipping the procedure forfeits the penalty leverage.
If your underlying loss arose before July 1, 2024, the prior framework (including former §22:1973) may still control. Verify the accrual date with counsel.
Your own carrier is dragging its feet on UM/UIM after the 30-day window. Cite current R.S. 22:1892(I) — penalty up to 50% of damages or $5,000 plus attorney fees and costs. Do not cite repealed §22:1973.
Your own carrier denies med-pay coverage without a documented evaluation. Bad-faith claim under current §22:1892(I). Document the denial, the proof-of-loss date, and the lack of investigation.
At-fault carrier offers $4K on a $12K repair, then stalls. Past 30 days. Demand full repair + 50% penalty + attorney fees under current §22:1892. The "PI firms won't touch property only" pattern people see on Reddit is changing as the attorney-fee award becomes more meaningful.
Now governed by R.S. 22:1892.2 (added 2024). 60-day timeline, cure-period notice. Don't sue for penalties without giving the statutory notice first.