Creates a mandatory right of appraisal for automobile repairs

House Bill 954 enacts a new section of Louisiana Revised Statutes Title 22, specifically R.S. 22:1289.2, which establishes a mandatory Right to Appraisal clause that must be included in all automobile insurance policies issued in Louisiana. The statute requires that all automotive insurance policies contain an RTA clause enabling policyholders to resolve disputes concerning claim valuations through an independent appraisal process. The appraisal mechanism operates through a structured three-party system consisting of one appraiser selected by the insurer, one appraiser selected by the policyholder, and a neutral umpire empowered to resolve any disagreements between the two appraisers. The statute directs that this RTA process must comply with procedures established in R.S. 22:1807.13 and R.S. 22:1807.19, which are existing provisions of Louisiana insurance law governing appraisal procedures.

The practical effect of this legislation impacts automobile insurance policyholders throughout Louisiana who now possess a statutory entitlement to seek an independent appraisal when they dispute an insurer's valuation of automobile repairs covered under their policies. Policyholders gain a formal mechanism to challenge claim valuations without initially resorting to litigation, potentially reducing time and expense in resolving valuation disputes. Insurance companies are obligated to include this RTA clause in all automobile policies, regardless of policy type or coverage level, creating a uniform procedural obligation across the industry. Neutral umpires and appraisers will experience increased demand for their services as policyholders exercise this newly mandated right.

The legislation operates within the existing framework of Louisiana insurance regulation found in Title 22 of the Louisiana Revised Statutes. By referencing R.S. 22:1807.13 and R.S. 22:1807.19, the statute incorporates existing appraisal procedures that already govern other insurance disputes in Louisiana, ensuring consistency with established statutory mechanisms. This approach avoids creating entirely new procedural requirements and instead mandates application of proven appraisal processes to automobile repair disputes. The statute addresses an identified gap in Louisiana automobile insurance law by requiring that policies contain appraisal provisions comparable to those already applicable in other insurance contexts, thereby extending policyholder protections in automobile claims disputes to match protections available in other insurance matters.