A new law in Louisiana under Act 317 (House Bill 411) has been signed by Gov. Jon Bel Edwards to further prohibit insurers from recommending specific auto repair shops without also informing their customers that they are not required to use the recommended shop.
Prior to the new law, the state banned insurers from making one of its claimants go to a specific shop to repair their vehicle. But this update to the law prohibits an insurer from recommending a particular shop without informing their claimant that they are under no obligation to use that recommended shop and can choose whatever shop they want.
The law also allows the insurance commissioner to fine the insurer from $500 to $1,000 for a first offense; $2,500 for a second offense; and $5,000 for a third offense in the same 12 months. In the event of excessive violations, the insurance commissioner can always suspend or pull a license.
