Pharren Perkins v. Primerica Life Insurance Company

New Orleans, Louisiana insurance law lawyer represented the Plaintiff who sued on a bad faith breach of insurance contract theory.



In Louisiana, an insurer acts in "bad faith" by violating a duty of good faith and fair dealing owed to the insured, primarily under



La. R.S. 22:1892. This statute requires insurers to pay claims within 30 days of receiving satisfactory proof of loss, and a failure to do so, if it's "arbitrary, capricious, or without probable cause," can result in a penalty of 50% of the amount due or $1,000 (whichever is greater), plus attorney fees and costs. A successful bad faith claim requires proof that the insurer received satisfactory proof of loss, failed to pay within the legal timeframe, and did so without a justifiable reason.



Conditions for a Bad Faith Claim



To prove bad faith, you must establish the following elements:



Proof of Loss: The insurer received sufficient information to act on the claim, such as a personal inspection by an adjuster



Arbitrary, Capricious, or Without Probable Cause: The insurer's failure to pay was unjustified, lacked a reasonable basis, or was "vexatious".



Misrepresent pertinent facts or policy provisions related to coverage.

Deny coverage based on an altered application without the insured's consent.

Mislead a claimant about the applicable prescriptive (statute of limitations) period.

Delay paying a valid claim without a reasonable justification.



Statutory Penalty: A penalty equal to 50% of the amount found to be due or $1,000, whichever is greater.



Proven Economic Damages: Any proven economic damages the claimant sustained due to the insurer's bad faith actions.

Attorney Fees and Costs: Reasonable attorney fees and court costs associated with the bad faith claim.



Recent Changes (Act No. 3)



Act No. 3 (2024) repealed La. R.S. 22:1973, which previously allowed recovery of consequential, general, and special damages up to two times the damages sustained.

The duties formerly outlined in La. R.S. 22:1973 were transferred to La. R.S. 22:1892, which continues to require insurers to adjust claims honestly and without unnecessary delays.

Order Dismissing Case: In-Chambers Status Conference set for 8/28/2025 10:15 AM before Judge Jay C. Zainey to discuss the Order of Dismissal granted on August 14,2025. Signed by Judge Jay C. Zainey on 8/21/2025.(mmm) (Entered: 08/22/2025)