At a glance
Legal framework
Statute. Louisiana has no common-law bad-faith tort worth relying on. Everything now runs through La. R.S. 22:1892 (payment and adjustment of claims), its new subsection (I) good-faith duty, and La. R.S. 22:1892.2 for catastrophic losses. La. R.S. 22:1973, the old good-faith statute, was repealed by Acts 2024, No. 3, effective 1 July 2024, and most of it was folded into § 1892(I).
Can you sue directly?
Yes. The policyholder sues the insurer directly under La. R.S. 22:1892 (and § 22:1892.2 for catastrophe claims). No regulator sign-off, no administrative step.
Deadline
Two years, in practice. Louisiana is a civil-law state, so the term is prescription, not limitation. Breach of an insurance contract is a personal action prescribing in 10 years (Civil Code art. 3499), but La. R.S. 22:868(B) lets a policy shorten that to 24 months from the inception of the loss for a first-party claim — and essentially every homeowner and commercial property policy does. In Wilson v. Louisiana Citizens (La. 2024) the Supreme Court held that the same 24-month clause bars the bad-faith penalty claim too. The clock runs from the date of the storm or fire, not from the date of the denial.
Before you file
Yes — on any catastrophe claim. Under La. R.S. 22:1892.2 the insured must give the insurer 60 days written notice of the violation before suing for penalties on a loss from a presidentially or gubernatorially declared disaster. If the insurer pays the full amount demanded within that window, together with actual expenses and attorney fees capped at 20% of the claim, the penalty claim is extinguished; a partial payment cuts the penalty in half. Ordinary non-catastrophe claims need no notice.
What you can recover

Damages available in Louisiana

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How to find one yourself, free

The state bar runs no statewide referral service. It points the public to local and parish bar associations, such as the Lafayette Bar Association, so there is no single number to ring. The LSBA main line is 800-421-5722, but it is not a referral helpline. The Louisiana Board of Legal Specialization certifies lawyers in appellate practice, bankruptcy, estate planning, family, health, labor, employment and tax law. There is no insurance or insurance-coverage specialty, so no Louisiana lawyer can hold a state board certification in this field.

Before you sue

How often does your insurer actually pay?

Worth checking before you spend money on a lawyer. Two different measures exist, and they are not interchangeable — one is a real payment record, the other is a complaint count.

Health cover — real denial rates

Published, per insurer

Health insurers selling on the federal marketplace must report how many claims they received and how many they refused. The figures are public and free to inspect.

20%
Average denied, 2023
1%–54%
Range across 175 insurers

The spread is the point. Two insurers selling comparable cover in the same state can refuse wildly different shares of what they are billed for. Look your own up before you assume your refusal was routine.

Source: CMS Transparency in Coverage public use files, plan year 2023 experience. Self-reported by insurers and not audited. Covers federal-marketplace plans only — not employer cover, and not state-run marketplaces. Post-service claims only.

Home, auto & property

No payout rate is published

There is no free public figure showing what share of home or auto claims any named insurer pays. Insurers do report it to regulators, but in most states that filing is confidential. Any table you see online quoting payout percentages for property insurers is either a paid commercial product or an estimate.

What is public is the complaint index — how many confirmed complaints a company generates against its share of the market. 1.00 is average. 3.00 means three times the complaints its size would predict.

Complaint indexes are published by state insurance departments and compiled by the NAIC. Figures move with both the company’s complaints and the wider market’s.

These two numbers are not the same thing. A denial rate is the share of claims an insurer refused. A complaint index is how often customers complained relative to the company’s size. A low complaint index does not mean an insurer pays well, and a high one does not prove it refuses claims — it can reflect the kind of cover it sells or the customers it attracts. Neither figure says anything about whether your claim should have been paid.
The clock

What the insurer is required to do, and by when

Start adjusting a property damage claim within 14 days of being notified (30 days for a declared catastrophe, extendable by the commissioner). Send the proof of loss form within 10 business days and say whether it is complete within another 10. Pay within 30 days of satisfactory proof of loss, and make a written settlement offer on property damage. For catastrophic losses the penalty deadline is 60 days on residential property and 90 days on other immovable property. A settlement once reduced to writing must be paid within 30 days.

The thing most people miss

Since 1 August 2025, La. R.S. 22:1892.3 makes a completed proof of loss statement form the only thing that counts as satisfactory proof of loss where the policy requires one. Photographs, contractor estimates and months of emails no longer start the penalty clock. If you never filled in and returned the form, the 30, 60 and 90-day deadlines that generate the penalty may never have begun to run at all.

Unsettled: Two things are genuinely unsettled. First, the effect of repealing § 22:1973 on conduct that happened before 1 July 2024 — whether the old double-damages penalty survives for older hurricane claims is still being fought over. Second, prescription after Act 876 of 2026 (HB 1117), signed 9 June 2026, which overruled Bryan v. Louisiana Citizens and provides that an insurer payment is not an acknowledgment of debt and does not extend the contractual period, which runs from the inception of the loss. Whether that applies to claims already pending has not been decided. If you have an open storm claim, get the date checked by a lawyer now rather than later.
Free first step

Complain to the regulator before you spend anything

A complaint to the Louisiana Department of Insurance costs nothing, creates a written record, and sometimes moves a stalled claim on its own. It is not a substitute for legal advice and it does not pause any deadline — but there is rarely a reason not to do it first.

Where this comes from

Sources

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