A proposed Louisiana law would prevent insurers' claim payments from resetting the prescriptive period to sue.
House Bill 1117, introduced by Representative Gabe Firment during the 2026 Regular Session of the Louisiana Legislature, addresses whether an insurer's payment on a claim resets the clock on how long a policyholder has to file suit.
The bill says no.
HB 1117 would amend R.S. 22:868(B), the statute governing limitations on actions, jurisdiction, and venue in insurance disputes. The statute applies to any insurance contract delivered or issued for delivery in the state and covering subjects located, resident, or to be performed in Louisiana. It also applies to any health and accident policy insuring a Louisiana resident, regardless of where the policy was made or delivered.
Under present law, no such contract may contain any condition, stipulation, or agreement that limits the right of action against the insurer to less than 24 months from the inception of the loss when the claim is a first-party claim, as defined in R.S. 22:1692, arising under insurance classifications defined in R.S. 22:47(6), (10), (11), (12), (13), (15), and (19). For all other types of insurance, the limit may not be less than one year from the time the cause of action accrues, unless otherwise specifically provided in the Louisiana Insurance Code.
The bill retains those existing minimums in full.
What the bill adds is a clarification that an insurer's payment under the terms of its contract shall not be considered the acknowledgment of a debt or otherwise serve to extend the contractually defined prescriptive period, which begins running at the inception of the loss. The bill's digest, prepared by House Legislative Services, further states that the payment does not interrupt prescription.
This distinction matters in Louisiana's legal framework. If an insurer's payment were treated as an acknowledgment of debt, it could have the effect of interrupting the prescriptive period, giving policyholders more time to bring legal action than the contract originally contemplated. By adding this language, the bill makes clear that payments made under the terms of a contract do not carry that consequence. The prescriptive clock keeps running from the inception of the loss regardless of any payments made.
The bill does not alter the existing prescriptive-period minimums or any other provisions of R.S. 22:868. As its digest notes, the proposed law retains present law. The only change is the added clarification regarding the effect of an insurer's contractual payment on the prescriptive period.
As of early April 2026, HB 1117 remains in its introduced form and has not yet been signed into law. If enacted, it would take effect upon the governor's signature or, if not signed, upon expiration of the time for bills to become law without signature, as provided by Article III, Section 18 of the Constitution of Louisiana. If vetoed by the governor and subsequently approved by the legislature, the act would become effective on the day following such approval.
