The Louisiana House of Representatives approved several insurance-related bills focused on legal reforms, covering areas such as trial evidence rules and limits on specific types of damage awards.
Mark Friedlander, senior director of media relations at the Insurance Information Institute, stated the legislative package is a necessary step to address legal abuses affecting the state’s insurance market.
Widespread legal system abuse is clogging the state’s court system and increasing prices on Louisiana consumers directly, imposing steep estimated costs of $1,011 to their annual household expenses
Mark Friedlander, senior director of media relations at the Insurance Information Institute
“Louisiana’s private passenger auto insurance affordability of 2.67% of median household income makes it the least affordable state for personal auto coverage in the U.S.,” Mark Friedlander said.
House Bill 34 permits both parties in a lawsuit to present evidence showing original medical charges and actual amounts paid, helping determine appropriate medical-expense awards. It also allows evidence of financial agreements between healthcare providers and third-party firms.
Friedlander said this measure would help curb inflated awards in personal injury cases.
House Bill 431 changes fault-based recovery rules by preventing claimants who are 51% or more at fault from collecting damages.
For those less than 51% at fault, compensation must match their level of responsibility. This replaces the existing system, which permits partial recovery regardless of fault percentage.
House Bill 434 increases the threshold for bodily injury recovery by uninsured drivers from $15,000 to $100,000. Drivers without insurance would not be able to collect the first $100,000 in damages under the new rule.
Lawmakers also passed House Bill 435, which limits general damage awards to $5 mn per claimant.
The bill does not introduce a new type of legal claim or change the definition of recoverable damages under state law. Juries would not be informed of the cap, but courts could reduce any general damage awards that exceed it.
Another approved bill, House Bill 436, bars unauthorized immigrants involved in automobile accidents from receiving general damages or compensation for lost wages.
They would still be eligible for certain special damages. The bill defines unauthorized immigrants as individuals unlawfully present in the U.S.
Insurance Commissioner Tim Temple supported the House’s decisions, noting that several of the bills align with his key objectives for the year. He encouraged the Senate to act on the pending legislation and other proposals he backs.
Now it’s up to the Senate to keep these bills moving, and several others that I support have yet to be heard. I will continue to advocate for these bills that reduce the cost drivers of excessive litigation and bodily injury claims in our auto insurance market.
Insurance Commissioner Tim Temple
One bill not yet passed, House Bill 576, would update the definition of “excessive” insurance rates and expand the commissioner’s authority over rate approvals. The bill is scheduled for further debate on April 30.
Governor Jeff Landry supports the measure, but Temple voiced reservations, stating on April 10 that current law already gives him full authority to reject unreasonably high rates. He explained that the department’s actuaries review rate filings thoroughly.
If the rate is too high, we direct the company to reduce it or we deny it. Sometimes they revise the filing or withdraw it entirely. I do not approve excessive rates.
Governor Jeff Landry
