Your insurer is stalling. The offer they sent is a fraction of what your claim is worth. Calls go unreturned. None of that is normal, and in Louisiana, it may not be legal. State law gives policyholders the right to sue their own insurance company when it handles a claim in bad faith, and the penalties on the insurer can be significant. Cueria Law Injury Lawyers has fought insurance companies across Louisiana for over 30 years, including cases where the insurer is supposed to be on your side. Call (504) 525-5211 to start your free consultation, available 24/7.
What Bad Faith Actually Means Under Louisiana Law
Bad faith is a legal standard, not just a feeling that your insurer treated you unfairly. Under Louisiana law, an insurer acts in bad faith when it fails to handle a valid claim honestly and promptly, or denies a legitimate claim without a reasonable basis for doing so.
Louisiana’s primary bad faith statute is La. R.S. 22:1892. Following a significant legislative overhaul that took effect July 1, 2024, this statute now consolidates the duties previously split between two laws. Insurers are required to begin adjusting a claim within 14 days of receiving notice of loss, make a written settlement offer within 30 days of receiving satisfactory proof of loss, and pay the amount owed within 30 days of that same deadline. Miss those windows arbitrarily, and the insurer faces penalties.
The 2024 amendments spelled out specific conduct that qualifies as a breach when done knowingly: misrepresenting policy provisions, denying coverage based on an application altered without the insured’s knowledge, misleading a claimant about filing deadlines, and failing to pay a written settlement within 30 days of reaching it.
The legal standard is whether the insurer acted arbitrarily, capriciously, and without probable cause. A disputed claim with a real legal basis to question coverage is not automatically bad faith. An insurer that ignores documentation, stonewalls a claimant, or lowballs without factual support usually is.
The Most Common Ways Insurers Act in Bad Faith After an Accident
Bad faith doesn’t always look like a flat denial. It often shows up as a pattern of behavior designed to wear a claimant down. Watch for these signs:
- Unreasonable delays without explanation. Your insurer has specific deadlines under Louisiana law. When they miss them without a valid reason, that is not a customer service problem. It is potentially a statutory violation.
- A lowball settlement offer with no supporting basis. Offering far less than documented damages without explaining why, or without having conducted a real investigation, can constitute bad faith.
- Misrepresenting what your policy covers. Telling you a loss is excluded when the policy language doesn’t actually support that position is one of the specific breaches listed in the statute.
- Changing the reason for denial. If your insurer denied your claim for one reason, then shifted to a different reason when you pushed back, that pattern signals bad faith.
- Failing to investigate at all. Insurers have a duty to look into your claim. Rubber-stamping a denial without gathering evidence, getting an independent medical exam, or reviewing documentation is a breach of that duty.
- Pressuring you to accept a fast, low settlement. This is especially common when injuries haven’t fully presented yet. Rushing a claimant to settle before they know the full extent of their damages is a recognized bad faith tactic.
None of these behaviors alone guarantees success. A pattern of them combined with missed statutory deadlines builds a strong case.
“Brent is not only smart and skilled, but also kind, responsive, and truly dedicated to fighting for his clients every step of the way.” — Carita Perry, Google Review
What You Can Actually Recover in a Bad Faith Claim
When an insurer is found to have acted in bad faith under La. R.S. 22:1892, the penalties go beyond paying what was originally owed. The statute allows a penalty of up to 50% of the amount owed, or $5,000, whichever is greater, plus attorney’s fees and costs. That structure is designed to make bad faith conduct financially painful.
For catastrophic property losses like hurricane damage, a separate provision under 22:1892.2 applies. Before filing a bad faith suit on those claims, claimants must first send written notice and give the insurer a 60-day window to cure. If the insurer pays in full within that period, the bad faith suit for penalties is extinguished. Residential property claims carry a 60-day payment deadline after proof of loss; commercial property has 90 days.
For personal injury and car accident claims, that 60-day cure notice is not required. If your insurer handled your personal injury claim arbitrarily, missed the 30-day payment deadline without cause, and you can prove it, you can pursue penalties directly.
Suing Your Own Insurer: First-Party Bad Faith Claims Explained
The concept of suing your own insurer surprises people. Most assume bad faith claims are only brought against the other driver’s insurance company. That’s a third-party claim. But when your own insurer fails you, that is a first-party bad faith claim, and Louisiana law protects you against both.
Common first-party bad faith situations include your own insurer delaying or denying a UM claim after a hit-and-run, your auto insurer undervaluing your vehicle’s total loss, or your homeowner’s insurer misrepresenting what your policy covers after a storm.
In each situation, you paid premiums for coverage. The insurer has a contractual obligation to perform. Breaching it arbitrarily triggers the same bad faith statutes. Being your own insurer does not give them a pass.
“Working with Mr. Brent Cueria was a ease! Looking for a lawyer that keeps you in the loop and is upfront and honest, he’s your guy. Mr. Brent went above and beyond for my case.” — Charlesha Henry, Google Review
Why Louisianans Trust Cueria Law to Take On Insurance Companies
Brent Cueria spent years on the insurance defense side before founding Cueria Law in 1993. He knows how insurers evaluate claims and where they look for reasons to deny. That experience is the foundation of how the firm handles bad faith cases.
Cueria Law holds a 4.9-star rating across more than 130 client reviews. Mr. Cueria is a member of the Million Dollar Advocates Forum, recognizing attorneys who have won settlements or verdicts exceeding $1 million, and has been repeatedly selected to the Super Lawyers list, placing him among the top 5% of attorneys in Louisiana. As Brent has put it directly: “We’re not afraid to take on the big companies — oil companies, insurance companies, and the Fortune 500 of the world.”
Cases are handled on a contingency fee basis. You pay nothing unless the firm wins your case. Call (504) 525-5211 to start your free consultation.
Meet the Attorney Who Will Handle Your Case
Brent Cueria, Founding Partner, earned his J.D. from Loyola University New Orleans School of Law in 1988. He founded Cueria Law in 1993 after years in insurance defense litigation. He is licensed before the Louisiana Supreme Court and handles bad faith insurance claims, car accidents, personal injury, maritime injury, wrongful death, and catastrophic injury cases statewide.
The firm is located at 650 Poydras Street, Suite 2740, in New Orleans. The team is available 24 hours a day, 7 days a week.
“Kind, professional, and communicative. Did exactly what was promised. I felt comfortable with Brent Cueria’s Law firm handling my case and they delivered.” — Milton Knapper, Google Review
Bad Faith Insurance in Louisiana: Frequently Asked Questions
How do I know if my insurer is actually acting in bad faith or just being slow?
Louisiana law sets specific deadlines: 14 days to begin adjusting, 30 days to pay after proof of loss. If those windows have passed without explanation, your insurer may already be in statutory violation. Shifting denial reasons and offers that don’t match your documented damages are additional red flags.
Can I bring a bad faith claim against the other driver’s insurer?
Yes. Third-party bad faith claims apply when the other driver’s insurer unreasonably delays or denies a valid claim against their policyholder. The same statutes govern, though procedural requirements can differ. An attorney will assess which type applies.
What if my insurer made a partial payment but it’s far below what I’m owed?
A partial payment does not protect an insurer from a bad faith claim. If the amount tendered was unreasonably low without legitimate basis, the statute applies to the underpaid portion. The 50% penalty under La. R.S. 22:1892 can be calculated on the gap between what was owed and what was paid.
Does the 2024 law change make it harder to bring a bad faith claim?
For personal injury and car accident claims, the core protections remain intact: the 30-day payment deadline and the 50% penalty plus attorney’s fees still apply. The most significant change affects catastrophic property loss claims, which now require a 60-day cure notice before a bad faith suit for penalties can be filed.
How long do I have to file a bad faith insurance claim in Louisiana?
The statute of limitations generally follows the underlying claim. For personal injury and car accident claims, that is typically one year. The analysis can be complicated depending on the claim type, so consult an attorney early rather than assuming you have time to spare.
How much does it cost to hire Cueria Law?
There is no upfront cost. Cueria Law works on a contingency fee basis. You owe nothing unless the firm recovers compensation for you.
Related Topics
Louisiana Bad Faith Insurance | RS 22:1892 | Insurance Claim Denial Louisiana | Bad Faith Penalty Louisiana | First Party Bad Faith | New Orleans Insurance Dispute Lawyer | Insurance Delay Tactics Louisiana | Cueria Law Injury Lawyers
Think Your Insurer Is Acting in Bad Faith? Here Is Your Next Step
Louisiana law gives you real leverage when your insurer crosses the line. Documenting the pattern and acting quickly is what turns that leverage into results. At Cueria Law Injury Lawyers, your consultation is free and we only collect a fee if we win your case. Not sure where to start? Read our guide on how to find the right lawyer for your situation.
Call (504) 525-5211 any time, day or night, or visit cuerialawfirm.com to start your free consultation.
