The Louisiana Insurance Commissioner issued a bulletin1 preventing insurers from issuing policies that prohibit policyholders from hiring public adjusters to help them with their property insurance claims.
The bulletin states in part:
It has come to the attention of the Louisiana Department of Insurance that some insurers are attempting to prohibit the use of public adjusters by insureds in their policy provisions by endorsements to their policies. The anti-public adjuster clauses attempt to prohibit insureds from hiring, engaging, retaining, contracting with, or otherwise utilizing the services of a public adjuster. The prohibition contained in these endorsements or any other policy provision directly contravenes La. R.S. 22 :1704(E)(2), which grants insureds the right to hire a public adjuster.
You are hereby directed to review all of your policy forms and endorsements to ensure compliance with La. R.S. 22:1704(E)(2).
Our firm has viewed some of these policies as illegal boycotts in restraint of trade. For those that have an interest in this issue, I would suggest you read Insurance Anti-Trust and The McCarren-Ferguson Act: Boycotts and Are Property Insurers Subject to Antitrust Lawsuits Through Pricing Guidelines and Boycotting Contractors That Properly and Legally Repair Property?
Thought For The Day
You have to be careful how you’re using the word boycott.
1 Directive 219. Anti-Public Adjuster Clauses in Policy Provisions or Endorsements. Louisiana Department of Insurance. Jan. 24, 2022.