Louisiana has laws that require insurance companies to act in good faith and fair dealing when handling claims. This means there are certain things an insurance company can and cannot do during the claims process, such as acting fairly and promptly when settling a natural disaster claim. They must be reasonable and have probable cause to deny, delay, or underpay a claim. When it’s not justified, and the insurance company acts in “bad faith” this way, they may be penalized under the law.
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