La. Lawmakers to Take on Insurance Issues

In a legislative alert to members of the Professional Insurance Agents of Louisiana, the Tatman Group reported that both the Louisiana House and Senate Insurance Committees will be considering this week several bills of interest to the industry.

The Senate Insurance Committee meets May 31 beginning at 10:00 a.m. and will consider:

SB 510 by Sen. Quinn – Provides for homeowner’s insurance policy claims for damages attributed to covered and noncovered losses under the policy. This is the concurrent cause legislation from the special session, round two.

The House Insurance Committee meets May 31 beginning at 9:00 a.m. Bills to be considered by the committee this week include:

–HB 1358 by Rep. Karen Carter – Provides insured with a private cause of action for certain acts. The proposed law establishes private rights of action against agents and adjusters for certain acts. The legislation was debated in House Insurance Committee last week and is back again this week.

–SB 620 by Sen. Murray – Increases penalties for insurers who fail to pay timely. This legislation would increase the penalty fro 25 percent to 50 percent and provide for attorneys fees on such failure to pay claims timely.
–SB 693 by Sen. Adley – Repeals flex band rating. Rate regulation would be handled once again through the Louisiana Insurance Rating Commission. According to PIA of La., this legislation would put politics back into small rate increase requests.
–SB 707 by Sen. Murray – Provides for damages for the breach of a good faith duty to settle an insurance claim. The bill would provide for additional penalties, double damages and attorneys fees. Insurers would not be allowed to use those expenses as a part of the rate making process.

PIA of La. members were urged to contact their legislators regarding these bills.

Source: The Tatman Group, www.tatmangroup.com/.

Topics Legislation Louisiana