In Louisiana, the cost of insurance consistently ranks as a top concern for residents, making it a key focus for legislators. As such, the forthcoming legislative session is widely anticipated to be dominated by discussions surrounding insurance reform.
“Whether we’re talking private passenger or commercial, we are paying some of, if not the highest, premiums in the country,” stated Insurance Commissioner Tim Temple. “We’ve got to get that under control.”
Governor Jeff Landry has prioritized “real insurance reform” in the upcoming regular session commencing April 14, according to his official spokesperson. However, the details of this reform remain somewhat unclear, as Governor Landry’s team has yet to share specifics with Commissioner Temple. The two have not always agreed on policy matters in the past, and they haven’t met to strategize on insurance issues before the session.
Last year, Governor Landry, Commissioner Temple, and most legislators coordinated on a set of bills designed to improve the state’s property insurance market, which appears to be yielding some positive results. The Louisiana Department of Insurance (LDI) has licensed ten new homeowner insurers since the start of the 2024 legislative session. According to the LDI, existing companies are submitting fewer rate increase requests, and those increases are less expensive. Some insurers have even started to reduce rates for certain policyholders.
However, Temple and the Legislature have yet to find similar consensus regarding the auto insurance market. The governor vetoed one bill supported by business advocates and helped to prevent others from coming to a vote.
This year, Temple is supporting HB 34, introduced by Representative Brian Glorioso. This bill centers on ensuring “transparency in medical expenses” by allowing any party involved in a trial to inform the jury what the plaintiff actually paid for medical procedures following an accident, rather than the full price.
The bill is similar to last year’s HB 423 by Representative Michael Melerine, which the governor vetoed. However, Senate Insurance Chair Kirk Talbot suggests a crucial difference may make the current bill more acceptable to all parties. Unlike Melerine’s bill, Glorioso’s does not reduce potential judgments but could lead to higher settlements in some cases. It simply allows for the introduction of medical bills and expert testimony concerning the reasonableness of those bills.
Commissioner Temple is also looking to address the following issues:
- Additional adjustments to how Louisiana handles the “proof of loss” documents submitted by homeowners when filing a claim. This process determines when the insurer has to respond and is a key element in potential bad faith claims.
- Adjusting “no pay, no play” regulations so that uninsured drivers cannot collect large awards after an accident. Current law prevents an uninsured victim from recovering the first $15,000 in damages related to injuries and the first $25,000 for property damage from a negligent driver, though exceptions exist, and an uninsured driver can still obtain compensation for serious injuries.
- Abolishing the Housely presumption, which presumes that an accident caused a medical condition if symptoms reportedly began with the accident, though the defense can contest this presumption.
Commissioner Temple has not been included in the administration’s plans to overhaul workers’ compensation. Lobbyist Alton Ashy, who is deeply immersed in this area, says there was no deliberate exclusion, noting that insurance commissioners haven’t typically been significantly involved in workers’ compensation matters.
