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In a Wednesday morning press conference, Gov. Jeff Landry signed into law what his office is calling the “largest tort reform effort in state history.” The package is a response to Louisiana’s sky-high insurance rates.
Of particular controversy is House Bill 148, sponsored by state Rep. Jeff Wiley, R-Gonzales. That bill gives Louisiana’s insurance commissioner—currently Tim Temple—the authority to reject “excessive” rate hikes. According to Landry’s office, several states already grant their insurance commissioners this power, including peer states like Alabama, Florida, Mississippi, South Carolina and Texas.
HB148 began as a narrow consumer transparency bill but was amended in the Senate to include provisions from other controversial pieces of legislation, including the provision that allows the insurance commissioner to deem rates “excessive” regardless of market conditions and subsequently demand refunds from insurance companies. Another amendment gives the commissioner broad discretion over what rate data is confidential, with limited recourse for insurers.
“I want you to know that this law was made better by folks who worked toward common ground,” Landry said of the bill on Wednesday.
HB148 has some high-profile opponents, including the Insurance Council of Louisiana and Temple himself. In a statement issued Tuesday, the council warned that the bill would only serve to deter insurers from investing in the state.
“[HB148] will significantly discourage needed insurance capital that would have otherwise come into the Louisiana marketplace,” Rodney Braxton, the insurance council’s executive director, says. “While this bill may come out of good intentions, the likelihood is that it will cause bad outcomes.”
The other bills signed into law on Wednesday are as follows:
- House Bill 431, which bars drivers who are more than 51% at fault for an accident from recovering damages
- House Bill 434, which expands Louisiana’s “No Pay, No Play” law to prohibit uninsured drivers from claiming damages for the first $100,000 in bodily injuries or property damages after an accident
- House Bill 436, which limits legal claims by unauthorized immigrants involved in accidents
- House Bill 450, which repeals Louisiana’s “Housley Presumption,” which grants injured plaintiffs a presumption that their injuries were caused by their accidents if several conditions are met
- House Bill 549, which provides a premium discount for commercial vehicles with dashboard cameras
The Insurance Council of Louisiana, however, contends that while these additional reform efforts “would benefit Louisiana’s insurance market and customers,” they will not be “nearly as effective” now that HB148 has passed as well.
Temple shared similar sentiments in a statement sent to Daily Report:
“With the exception of HB148, the bills signed into law today are significant steps that Louisiana has taken toward achieving meaningful legal reform. Many additional bills that need to pass are still making their way through the legislative process, so we have a long way to go over the next two weeks if we want to fully address the cost drivers behind our unaffordable auto insurance premiums this session. At the same time, passing HB148 was a mistake that destabilizes our market and threatens to neutralize—if not outright reverse—the progress we’re making on fixing the homeowners and auto insurance crisis in Louisiana.”
