Louisiana public adjusters can't charge a percentage — what they charge instead, and the 72-hour rule that mirrors Texas

Louisiana is the only state where a public adjuster cannot charge you a percentage of your settlement. The law is absolute: any contract that ties the adjuster's fee to the size of your claim is "against public policy and is null and void" (R.S. 22:1703(A)). That means every Louisiana public adjuster works on a flat fee or an hourly rate — never a contingency.

What the statute actually says

The operative sentence in R.S. 22:1703(A):

"A public adjuster shall not solicit for or enter into any contract or arrangement between an insured and a public adjuster which provides for payment of a fee to the public adjuster which is contingent upon, or calculated as a percentage of, the amount of any claim or claims paid to or on behalf of an insured by the insurer and any such contract shall be against public policy and is null and void."

This has been the law since 2006 (Acts 2006, No. 806). A bill in 2022 (SB 186) would have introduced a 10% percentage cap, bringing Louisiana in line with Texas and Mississippi. It died in committee on June 6, 2022, and the prohibition stands unchanged.

What Louisiana adjusters charge instead

Without a percentage option, Louisiana public adjusters typically offer:

• Flat fee — a fixed dollar amount agreed before work begins, regardless of claim size.
• Hourly rate — billed for time spent, with the rate and estimated hours in the written contract.

Both must be "reasonable" under the statute, and the full compensation must be specified in the written contract (R.S. 22:1704(A)). There is no statutory cap on the dollar amount, only the ban on tying it to a percentage.

The 72-hour rule that mirrors Texas

Louisiana has a second rule that limits what an adjuster can earn when the insurer acts fast. Under R.S. 22:1704(C), if the insurer pays or commits in writing to pay the policy limit within 72 hours of the loss being reported, the adjuster:

1. Must inform the insured that the loss recovery amount cannot be increased by the insurer.
2. Is entitled only to reasonable compensation based on time spent and expenses incurred.

Texas has a nearly identical provision at Insurance Code § 4102.104(b), and Georgia mirrors it at O.C.G.A. § 33-23-43.3(b). In all three states, the 72-hour trigger converts the adjuster's compensation to a time-and-expense basis — no percentage, no contingency.

The practical effect: if your insurer responds quickly with a full-limits payment, the adjuster's fee drops to what amounts to an hourly bill. This is worth knowing before you sign.

What this means for Louisiana policyholders

1. Get the fee in writing before signing. The contract must specify the exact fee or rate (R.S. 22:1704(A)). If an adjuster quotes a percentage, the contract is void.
2. Compare flat-fee quotes. Without a percentage anchor, fees vary more between adjusters. Ask at least two for written quotes.
3. Ask about the 72-hour scenario. If your insurer is already offering policy limits, the adjuster's compensation is limited to time-and-expense — which may be less than a flat fee you already agreed to.

Sources

• La. R.S. 22:1703 — Public adjuster fees
• La. R.S. 22:1704 — Contract between public adjuster and insured
• Tex. Ins. Code § 4102.104 — Commissions
• O.C.G.A. § 33-23-43.3 — Compensation of adjusters

Use the fee calculator to compare verified fee caps across states, or verify a Louisiana adjuster's license before signing anything.

Related

• Five states bar percentage fees when insurers pay policy limits within 72 hours
• Texas: if your insurer pays policy limits within 72 hours, a public adjuster can't take a percentage at all