§ 22:2652 — Purposes; public purpose

§2652. Purposes; public purpose
A. The purpose of this Chapter is to provide a nonadversarial alternative dispute
resolution procedure that is prompted by the need for effective, fair, and timely handling of
residential property insurance claims for residential properties that are damaged by a
hurricane. In the wake of the property devastation caused in 2005 from hurricanes Katrina
and Rita, the Louisiana Department of Insurance, hereinafter referred to as the "department",
issued Emergency Rule 22, that established a mandatory mediation program. The mediations
conducted pursuant to Emergency Rule 22 resulted in the mediation of approximately twelve
thousand property damage disputes with a very high success rate. Due to the success of this
mediation program, the department issued Bulletin 2021-08 that implemented the "Hurricane
Ida Mediation Program". The mediation program was implemented to give property owners
a way to settle insurance claims in a timely manner and a low-cost way to resolve a property
insurance claim. Giving citizens an alternate way to resolve residential property insurance
disputes and assisting citizens in the repair of their property in a timely manner and at a
lower cost is a valid public purpose in the best interest of the citizens.
B. The Louisiana Legislature finds that the program is a valid public purpose
providing the citizens of this state an alternate resolution dispute program to assist in
resolving residential property insurance claims in a timely manner and at a lower cost.

Legislative History

Acts 2022, No. 591, §1, eff. Jan. 1, 2023.