BATON ROUGE - A bill that promises to reduce auto insurance rates in the state and lower the financial bar to access jury trials could soon become law now that the Louisiana House approved the legislation. The Senate passed SB418 last week.
“SB 418 will now go back to the Senate for concurrence,” said Jim Harris, communications director with the Louisiana Coalition for Common Sense, a group of professional associations, companies and individuals committed to ensuring a fair legal climate.
“There is a possibility it may not be concurred to provide an opportunity to continue to work on some of the language that all parties want to have in proper order.”
The Omnibus Premium Reduction Act of 2020, also known as SB 418, passed the House 72 to 28 on Friday, May 29, and must now withstand a potential veto from Democratic Gov. John Bel Edwards.
“The governor might veto it and then we'd have to try to override the veto and if not, we'll come back again later,” Harris told the Lousiana Record.
Once enacted, Omnibus Premium Reduction Act of 2020 will lower the threshold for a jury trial from $50,000 to $5,000 and limit personal injury plaintiff’s recovery of medical expenses to the amount actually paid to the healthcare provider by the insurer or Medicare rather than the amount billed.
“The only amendments added to this were friendly amendments in the Civil Law Committee,” Harris said. “There were no amendments added on the House floor. So, there have been enough votes in both the Senate and the House to override any gubernatorial veto.”
Louisiana had the highest bodily injury (BI) liability claim frequency in the country, according to the Insurance Research Council, and as previously reported, personal auto insurance premiums increased 56% since 2014 in Louisiana compared to 23% nationwide and Louisianans are 60% more likely to sue insurers rather than settle out of court.
“Louisiana has the highest automobile and commercial rates in the country along with Michigan and Michigan just passed tort reform and now we’re in the process,” Harris said in an interview.
SB 395, which will regulate false, misleading or deceptive "jackpot" advertising pertaining to law firms and legal services, also passed the House 78-23.
"There were a couple of amendments and it now goes back to the Senate for concurrence in those amendments," said Harris.
Introduced by Sen. Heather Cloud (R-Turkey Creek), SB 395 increases transparency in legal advertising by requiring the disclosure of how much of court judgments and settlements actually go to the plaintiff after attorney fees and court costs.