RS 22:2655

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RS 22:2655

§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.

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