In the wake of Hurricane Ida, many adjusters and contractors are headed to the State of Louisiana to assist in the assessment of damages and clean up. While heading into Louisiana, it is important to closely read the insurance policies.
In Louisiana, some policies contain an anti-assignment clause. This language may require consent from the insurance company prior to any assignment or transfer of rights under the policy. While most states void these post-loss anti-assignment clauses, Louisiana does not. The following is an example of an anti-assignment clause.
Assignment of interest under this Policy shall not bind Insurer unless their consent is endorsed hereon.
This was previously discussed in more detail in the following blog:
Disaster Relief: Is a Post-Loss Anti-Assignment Clause Prohibited in Louisiana?
While preparing this blog, I asked our Louisiana Counsel, Lucas Morehouse, what he feels is the most important in-state quirk that adjusters and contractors need to be aware of.
He told me that many adjusters are not aware that they cannot have contingent-based fees. Adjusters can’t negotiate with the insurance companies, and there may be criminal penalties.
Public Adjusters are encouraged to closely read LA RS 22:1703, which explains Public Adjuster’s fees, LA RS 22:1704, which explains the contracting requirements, and LA RS 22:1706, which outlines the standards of conduct.
In, Warning! Public Adjusters Thinking of Working in Louisiana Should First Read the Case of Earl Carr, my mentor, Chip Merlin, posted an in-depth look at a case that serves as a warning to public adjusters working in the state.
When heading into a new state to do work, it is crucial to look carefully at the different rules and regulations. Don’t let these anti-assignment clauses and various local rules take you unaware; carefully read the insurance policy before beginning any work.