§ 22:2655 — Insurer and insured requirements for mediation

§2655. Insurer and insured requirements for mediation
The insurer and insured that elects to participate in mediation under the provisions
of this Chapter shall agree to the following conditions:
(1) The insurer shall bear the reasonable costs necessary to conducting mediation
conferences, except if the insured fails to appear at the mediation conference, the conference
shall be rescheduled upon payment by the insured of the costs of a rescheduled conference.
(2) If the insurer fails to appear at the mediation conference, the insurer shall pay the
insured's actual cash expenses up to two hundred fifty dollars for expenses incurred in
traveling to and from the mediation conference, and then pay any additional reasonable fees
or costs incurred in rescheduling the mediation conference. The insurer's failure to appear
at the mediation conference may subject the insurer to enforcement consistent with the
provisions of R.S. 22:1961 et seq., unless the insurer's failure to attend was due to good
cause.
(3) Lack of the insurer's representative to appear with settlement authority shall be
considered a failure of the insurer to appear at the mediation conference. The insurer shall
pay the insured's actual cash expenses up to two hundred fifty dollars for expenses incurred
in traveling to and from the mediation conference and pay any additional reasonable fees or
costs incurred in rescheduling the mediation conference. The insurer's failure to appear at the
mediation conference may subject the insurer to enforcement consistent with the provisions
of R.S. 22:1961 et seq., unless the insurer's failure to attend was due to good cause.
(4) The insurer shall provide the mediation firm all of the following:
(a) Name, municipal address, electronic mail address, if applicable, telephone
number of the insured, and the location of the property if different from the municipal
address given by the insured.
(b) The claim and policy number for the insured.
(c) A brief description of the nature of the dispute.
(d) The name, municipal address, electronic mail address, and telephone number of
the insurer's contact for scheduling mediation.
(e) Information with respect to any other policies issued by the insurer to the insured
that may provide coverage of the insured property for named perils like a flood or windstorm.
(5) Within five business days after the firm contacts the insurer and the insured, the
insurer and the insured shall provide the firm all relevant written documentation regarding
the disputed claim and a short statement from each as to why the parties have not been able
to reach an amicable resolution.
(6) The firm may request additional documentation from the insurer or the insured.
The insurer and the insured shall comply with any reasonable request for additional
documentation or give an explanation as to the reason the insurer or insured is not able to
comply with the request for additional documentation.
(7) The insured may be represented by an attorney or other representative in the
mediation, and the insured shall provide the name and contact information for the attorney
or other representative to the mediator at least six days before the date of the mediation.
(8) All parties shall negotiate in good faith.
(9) The insurer and the insured shall be given an opportunity to present each side of
the controversy, and each side may utilize any relevant documents and bring any individuals
with knowledge of the issues, like adjusters, appraisers, or contractors, to address the
mediator.
(10) All statements made and documents produced at mediation shall be considered
settlement negotiations in anticipation of litigation and the provisions of R.S. 9:4112 shall
apply.
(11) Any agreement between the insurer and the insured shall be reduced to writing.
The insurer and the insured shall sign the agreement signifying the portions of the claim
dispute that have been resolved in whole or in part.
(12) Mediation is voluntary and nonbinding. If a written settlement is reached, the
insured shall have three business days within which to rescind the settlement unless the
insured has cashed or deposited any check or draft disbursed to the insured for the disputed
matters as a result of the mediation conference. If a settlement agreement is reached and is
not rescinded, the written settlement agreement shall be binding and shall act as a release of
all specific claims that were presented in that mediation conference.
(13) The insurer shall disburse to the insured the specific dollar amount agreed to
within thirty days of the conclusion of the mediation.
(14) If the insurer and the insured reach a partial agreement as to the disputed claim,
the insurer and the insured may continue to utilize the service of the mediator after the parties
have completed voluntary mediation under the program. If the insurer and the insured agree
to further mediation, the parties shall be responsible for any additional mediation expenses
at the mediator's standard rate.
(15) If a partial settlement is reached and reduced to writing, the insured shall have
three business days within which to rescind the settlement unless the insured has cashed or
deposited any check or draft disbursed to the insured for the disputed matters as a result of
the conference. If a settlement agreement is reached and is not rescinded, the written
settlement agreement shall be binding and shall act as a release of all specific claims that
were presented in that mediation conference.

Legislative History

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