Panel approves measure to require insurers to verify contractor licenses before paying contractors

The House Insurance Committee on April 14 reported House Bill 11 62 favorably. Representative Glorioso told the committee the bill is a consumer-protection measure intended to prevent unlicensed contractors from receiving insurer checks when insurers put a contractor’s name on a payment.

"It is a consumer protection bill and all it does is it says that on first-party property damage claim, on a house, if the insurance company chooses to put the name of the contractor on the check ... that they're required to go to the Board of Contractors website and make sure that that contractor is a licensed contractor in Louisiana," Representative Glorioso said.

Glorioso emphasized insurers may still issue checks directly to insureds, and that the bill does not require insurers to place a contractor name on a check. Members asked whether the bill conflicts with statutory timing for payment; a member in the audience, Luke Williamson, noted statute 18 92.2 extends certain deadlines to 60 days for residential catastrophes and 90 days for commercial catastrophes, and the sponsor said she would clarify statutory citations between committee and floor.

Several industry groups submitted written support and did not speak. Representative Glorioso moved the favorable report; the committee carried the motion by voice with no objections and forwarded the bill.