LA| The Louisiana Department of Insurance issued Advisory Letter 2025-02 to notify all property and casualty insurers, producers, public adjusters, and others doing business in Louisiana that Act 364 of the 2023 Legislative Session (La. R.S. 22:1275) prohibits the solicitation or acceptance of assignment of benefit (AOB) agreements for post-loss insurance benefits under residential or commercial property insurance policies. Such agreements are now declared null, void, and unenforceable, except for certain exemptions like assignments to federally insured financial institutions, mortgagees, or subsequent property purchasers.
Key Points:
- Any attempt to solicit, accept, or enforce an AOB agreement for post-loss benefits under property insurance is a violation of state law and considered an unfair or deceptive trade practice, subject to penalties.
- The prohibition does not apply to assignments involving liability coverage or those made to mortgagees, federally insured financial institutions, or subsequent purchasers, and all parties are urged to stay informed and report suspicious or fraudulent conduct to the Louisiana Department of Insurance.