Louisiana Lawmakers Tackle Insurance Affordability Crisis in Legislative Session

The Louisiana legislative session is underway this week in Baton Rouge, where lawmakers are primed to address the state’s insurance affordability crisis.

Governor Jeff Landry and Insurance Commissioner Tim Temple both have made it clear that insurance reform is a top priority this session, which began Monday, April 14 and runs through June 12.

In Landry’s address to lawmakers on Monday, he referred to insurance as the divisive issue that “permeates through every corner” of the Capitol Building. The governor said both insurance companies and plaintiffs lawyers are responsible for Louisiana’s insurance rates, which are among the highest in the country.

“Year after year, we are promised by insurance companies that if we pass this or if we pass that, they will lower rates. It never happens,” Landry said. “Year after year, we are promised by lawyers that if we conform the laws to favor the plaintiffs they represent, it won’t affect rates. That never happens either.”

Landry’s both-sides approach runs counter to Temple’s attitude that serious tort reform is needed to do away with bad actors and entice more carriers to write business in the state.

“We have the most visibility, the most exposure, the most eyes on this issue ever before,” Temple told Insurance Journal. “More people paying attention is a good thing. The more people know what the true solutions are out there, the better the odds of getting those serious reform bills passed.”

Temple is sponsoring 20 insurance reform bills this session, including legislation that would modify Louisiana’s comparative fault rule, tighten third party litigation financing agreements, limit attorney contingency fees and add pre-suit notice requirements.

“I never ask anybody to support experimental legislation,” Temple said. “Everything that we are focused on is designed after a very collaborative effort. Talking with industry, talking with consumer advocates. Talking with reinsurers, claims folks.

“My intent is to bring serious reform, serious efforts. Not feel good. Things that are actually going to improve loss cost so that insurance premiums will follow.”

Landry and Temple are on the same page on at least some issues. Both leaders support legislation that would restrict plaintiff attorney advertising, eliminate the presumption of injury without evidence of a pre-existing condition or other causes, add medical transparency to the collateral source rule, limit recovery for uninsured drivers and prohibit drivers from texting or using social media while driving.

Landry also supports legislation that would give the insurance commissioner power to reject excessive rates.

Topics Legislation Louisiana