Louisiana Revised Statutes 37:2159.1 – The following acts are prohibited by persons or companies performing home improvement contracting services:
Terms Used In Louisiana Revised Statutes 37:2159.1
- contractor: includes persons who receive an additional fee for the employment or direction of labor, or any other work beyond the normal architectural or engineering services. See Louisiana Revised Statutes 37:2150.1
- Home improvement contracting: means the reconstruction, alteration, renovation, repair, modernization, conversion, improvement, removal, or demolition, or the construction of an addition to any preexisting residential structure which building is used or designed to be used as a residence or dwelling unit, or to structures which are adjacent to such residence or building where the project value exceeds seven thousand five hundred dollars but is not greater than seventy-five thousand dollars. See Louisiana Revised Statutes 37:2150.1
- Person: means any individual, firm, partnership, association, cooperative, corporation, limited liability company, limited liability partnership, or any other entity recognized by Louisiana law; and whether or not acting as a principal, trustee, fiduciary, receiver, or as any other kind of legal or personal representative, or as a successor in interest, assignee, agent, factor, servant, employee, director, officer, or any other representative of such person; or any state or local governing authority or political subdivision performing a new construction project which exceeds the contract limits provided in La. See Louisiana Revised Statutes 37:2150.1
The following acts are prohibited by persons or companies performing home improvement contracting services:
(1) Interpreting insurance policy provisions regarding coverage or duties under an insured’s property insurance policy. A contractor shall be considered to have violated the provisions of this Paragraph if a person working on behalf of the contractor including but not limited to a compensated employee or a nonemployee who is compensated by the contractor violates the provisions of this Paragraph.
(2) Adjusting a property insurance claim on behalf of an insured as an adjuster, as defined in La. Rev. Stat. 22:1661. A contractor shall be considered to have violated the provisions of this Paragraph if a person working on behalf of the contractor including but not limited to a compensated employee or a nonemployee who is compensated by the contractor violates the provisions of this Paragraph.
(3) Providing an insured with an agreement authorizing repairs without providing a good faith estimate of the itemized and detailed costs of services and materials for repairs undertaken pursuant to a property damage claim. A contractor shall be considered to have violated the provisions of this Paragraph if a person working on behalf of the contractor including but not limited to a compensated employee or a nonemployee who is compensated by the contractor violates the provisions of this Paragraph. A contractor does not violate this Paragraph if, as a result of the insurer adjusting a claim, the actual cost of repairs differs from the initial estimate.
(4) Sharing in any legal fee earned by an attorney.
(5) Requiring an insured to sign an attorney representation agreement on behalf of an attorney.
(6) Accepting a fee, commission, or other valuable consideration, regardless of form or amount, in exchange for a referral by the person or company to an attorney or law firm.
(7) Repealed by Acts 2023, No. 364, §2.
Acts 2022, No. 734, §1; Redesignated from La. Rev. Stat. 37:2175.3; Acts 2023, No. 104, §1; Acts 2023, No. 364, §2.