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Legislators often say the cost of insurance is the most important issue facing their constituents. So it’s not surprising that, even in a fiscal-focused session, insurance is widely expected to be the hottest topic.
“Whether we’re talking private passenger or commercial, we are paying some of, if not the highest, premiums in the country,” Insurance Commissioner Tim Temple says. “We’ve got to get that under control.”
One of Gov. Jeff Landry’s main priorities for the upcoming regular session that convenes April 14, according to his official spokesperson, is “real insurance reform.” But what does that mean, exactly?
Whatever it means, the governor’s team hasn’t told Temple. The two have not always been on the same page, and they haven’t met to discuss insurance issues in the runup to this year’s session.
To be fair, Landry, Temple and a majority of legislators were able to agree last year on a package of bills meant to improve the state’s property insurance market, which may already be starting to pay dividends.
The Louisiana Department of Insurance has licensed 10 new homeowner insurers since the 2024 session began. Companies already doing business in the state are filing fewer (and less costly) rate increases, and are beginning to cut rates for some policyholders, according to the department.
But Temple, Landry and the Legislature have not been aligned when it comes to measures meant to address the auto insurance market. The governor vetoed one bill that business advocates supported and helped to bury others before the legislation got to a floor vote.
This year, Temple is backing HB 34 by Rep. Brian Glorioso, which, put very simply, is meant to ensure “transparency in medical expenses” by allowing any party at trial to inform the jury what the plaintiff actually paid following an accident, as opposed to the sticker price of a given procedure.
The bill is very similar to last year’s HB 423 by Rep. Michael Melerine, which Landry vetoed. But Senate Insurance Chair Kirk Talbot says there’s a key difference that might make it more palatable to the other side.
Unlike Melerine’s bill, Glorioso’s does not reduce the potential size of a judgment, Talbot says; in fact, it could allow for higher judgments in some cases. It simply provides for the admissibility of medical bills and expert testimony about whether those bills are reasonable, he said.
Other issues Temple wants to address include:
—Additional tweaks to how Louisiana handles the “proof of loss” documents that homeowners submit when they make a claim, which starts the clock regarding when the insurer has to respond and plays into potential bad faith claims.
—Adjusting “no pay, no play” rules so that uninsured drivers can’t collect large awards after an accident. Under current law, an uninsured victim cannot recover against a negligent driver for the first $15,000 in damages that relate to their injuries and the first $25,000 in damages to their property, but there are exceptions and the uninsured driver still can win compensation for severe injuries.
—Doing away with the Housely presumption, which basically says the courts start with the assumption that an accident caused a medical condition if the symptoms allegedly begin with the accident, though the defense can offer evidence to counter the presumption.
Temple has not been in the loop on the workers’ compensation overhaul that the administration is pushing. Lobbyist Alton Ashy, who has been deeply involved, says Temple has not been deliberately excluded, adding that insurance commissioners typically haven’t played a significant role in workers’ comp.
