Gov. Jeff Landry
BATON ROUGE – Gov. Jeff Landry has signed six insurance reform bills into law.
During a May 28 ceremony at the governor’s mansion, Landry said he was following through on a promise to state residents about addressing the state’s insurance crisis.
Landry’s office says the legislation is the largest tort reform effort in state history.
“Today, we’ve taken steps to shield Louisianans from frivolous lawsuits driven by trial lawyers using a data-driven strategy,” Landry said. “And we made it clear to insurance companies that they must answer to their policyholders.
“Over the past 50 days, I am proud to say that the only side I’ve stood with is the people of Louisiana.”
The bills signed include:
HB 148 grants the Insurance Commissioner greater authority to hold down rates. Texas, Mississippi, South Caroline, Florida, Alabama and other states grant their insurance commissioner this power.
HB 450 requires someone who sued over injuries in a car accident to show that the injuries actually occurred during the accident.
HB 434 disallows a driver without car insurance from collecting an award for bodily injury medical expenses for any amount below $100,000, up from $15,000 today.
HB 436 prohibits undocumented immigrants who are injured in car accidents from collecting general damages
HB 431 bars drivers responsible for at least 51 percent of an accident from receiving a damage award to cover their injuries. Under current law, a driver responsible for, say, 51 percent of the accident can collect a payment equal to 49 percent of the overall damage award.
HB 549 provides a premium discount for commercial motor vehicles with dashboard cameras and telematics systems.
Landry, who also is an attorney, said he places blame on two groups for the high auto and property insurance rates being passed on to Louisianans.
“ Let me be clear, I believe both trial lawyers and insurance companies are responsible and they are to blame,” he said. “For the pain our families are enduring in their pockets each and every month.”
Louisiana Association of Business and Industry President and CEO Will Green praised the legislation.
“On behalf of our members, LABI has long championed the need for comprehensive legal reform to address Louisiana's deeply imbalanced civil justice system and improve the state’s business climate, rejecting the piecemeal, diluted approaches that have failed to deliver meaningful change,” Green said. “Legal reform is a core pillar of LABI’s LA Driven strategic plan, and reflects years of advocacy to create a fairer, more competitive environment for Louisiana employers.
“With this goal in mind, LABI has spent months steadfastly working with lawmakers and a broad coalition of business and industry advocates representing Louisiana job creators to craft a robust package of legislation focused on bringing fairness, accountability and transparency to our courtrooms. The goal of this approach was not to reinvent the wheel; it was driven by data and laws that have proven successful in other states, recognizing the imperative need to make Louisiana a more attractive place for insurance companies to do business.”
Green thanked Landry and lawmakers.
“We thank Governor Landry for signing HBs 431, 434 and 450 into law and extend our sincere thanks to the lawmakers who demonstrated courage and commitment to get their bills across the finish line: Rep. Emily Chenevert, Rep. Jason DeWitt and Rep. Michael Melerine,” Green said. “These leaders, and many of their colleagues from both parties, refused to accept the status quo and stood up to entrenched interests for the good of Louisiana’s working families and business community.”
Green said other critical pieces of legislation still need to happen.
“It is imperative that lawmakers get them across the finish line,” he said. “For too long, soaring insurance premiums have threatened businesses across Louisiana, forcing employers to make difficult decisions or move operations elsewhere. Rebalancing the scales of justice by reining in lawsuit abuse is essential to supporting our job creators and making our business climate one that fosters investment and innovation.
“Our commitment to this multi-year effort is unwavering. We will continue to assess the progress made in recent months while also confronting the remaining barriers standing in the way of real relief for the people who drive our state forward.”
State Insurance Commissioner Tim Temple has criticized the legislation and others signed by Landry.
