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HB 1117

INSURANCE: Provides relative to certain insurer contractual payments and prescriptive period

2026 Regular Session Introduced by Gabe Firment

Insurer payments under the contract do not reset or extend the prescriptive period for insured claims, which remain governed by existing minimum time limits.

Effective date: See Act.
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Bill Summary · HB 1117

Summary of Louisiana HB 1117 (2026)

Purpose

HB 1117 amends the prescription period rules governing insurance contract disputes in Louisiana. It clarifies that when an insurer pays under the terms of its contract, such payment does not constitute an acknowledgment of debt and does not extend or interrupt the contractually defined prescriptive period. The bill preserves existing protections against shortening prescription periods for most insured claims.

Key Provisions

  • Prescriptive period protections retained:

    • For first-party claims (as defined in Louisiana law), insurance contracts cannot set a right of action shorter than 24 months from the inception of the loss, applicable to policies classified and defined in R.S. 22:47(6), (10), (11), (12), (13), (15), and (19).
    • For all other insurances, contracts cannot set a right of action shorter than 1 year from when the cause of action accrues, unless otherwise provided in law.

  • Clarification regarding insurer payments:

    • An insurer’s payment made under the terms of the contract is explicitly not to be considered an acknowledgment of debt.
    • Such payments do not interrupt or extend the contractually defined prescriptive period. In other words, paying a claim does not reset or lengthen the prescribed filing deadline.

  • Effect on contract interpretation:

    • The bill ensures the prescriptive period remains governed by the terms already established in law, and that payments by the insurer do not alter or extend those periods.

Affected Parties and Scope

  • Insurance contracts delivered or issued for delivery in Louisiana that cover services or risks located, resident, or performed in Louisiana (and health and accident policies insuring Louisiana residents) are subject to these provisions.
  • The changes apply to first-party claims and to other insurances as defined in the statute (R.S. 22:47(6), (10)-(13), (15), (19)).

Effective Date and Procedure

  • Effective date: The act becomes effective upon signature by the governor or, if not signed, upon the lapse of the time allowed for gubernatorial action. If vetoed and subsequently approved by the legislature, it becomes effective the day after such approval.

Additional Notes

  • The bill is a clarifying amendment to R.S. 22:868(B) and does not alter the minimum prescriptive periods themselves; it preserves current law while explicitly stating that insurer payments do not extend those periods.
  • The bill passed favorably in committee (10-0) and has an identified sponsor: Rep. Gabe Firment (with a co-sponsor listed).

If you’d like, I can provide a plain-language example illustrating how the prescriptive period interacts with an insurer’s payment under a hypothetical claim.

Compiled from official sources — confirm details with the bill’s official record.

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