Business groups and Louisiana’s insurance commissioner are supporting multiple measures under consideration in the state Legislature aimed at curbing excessive regulations and improving Louisiana’s civil litigation climate.
“Insurers and reinsurers have repeatedly told me they have three major concerns in Louisiana: catastrophe exposure, overregulation and a poor legal environment,” Commissioner Tim Temple said in a recent statement. “I’m doing everything I can to address their first concern through my support for the Louisiana Fortify Homes Program and other resiliency efforts, and the industry is taking notice.”
One of the bills Temple is supporting extends the home-fortification program beyond its planned termination date of June 30, 2025. House Bill 120 authorizes the insurance commissioner to provide homeowners with grants to retrofit their homes with storm-resistant roofs.
Temple also points out that State Farm General Insurance Co. recently announced that it would not be renewing tens of thousands of property insurance policies in California, leading that state’s Department of Insurance to push for new efforts to modernize regulation and rate-determinations in the California marketplace.
“We must also modernize our regulatory framework and fix our broken legal environment, and we must do both now,” Temple said. “If we don’t enact bold change this session, I believe our ongoing insurance crisis will not just stay the same – it will get worse.”
He is also supporting legislation that would help to speed up the rate-approval process. HB 613 would allow insurance company rate filings and supporting documents to be deemed approved unless the commissioner disapproves of the filing within 30 days.
“The legislation Commissioner Temple supports is aimed at creating a stable insurance marketplace that will attract insurers to Louisiana and bring premium relief to consumers through competition,” John Ford, the department’s spokesman, told the Louisiana Record in an email.
Business groups, including the Louisiana Association of Business and Industry, National Federation of Independent Business’s Louisiana chapter and the Louisiana Lawsuit Abuse Watch, are also backing several bills that Temple also supports.
These bills include Senate Bill 8, authored by Sen. Rick Edmonds (R-Baton Rouge), which requires parties in civil court cases to reveal third-party litigation financing contracts or agreements. Under such contracts, those who are not plaintiffs or legal representatives can receive shares of damages awards.
Other measures backed by Temple and business groups would require that juries in civil lawsuits are told what the plaintiffs actually pay in medical costs vs. what the medical provider bills the insurer. And SB 250, sponsored by Sen. Robert Allain (R-Franklin) would help to ensure that juries are better able to evaluate damages awards to assure they are reasonable.
Another bill supported by businesses, SB 20, sponsored by Alan Seabaugh (R-Shreveport), would mandate that plaintiffs prove causation in lawsuits as opposed to relying on presumptions of causation based on court precedents.
Lana Venable, LLAW’s executive director, emphasized that some of the key reforms to address the cost and availability of insurance include HB 336 by Rep. Emily Chenevert (R-Baton Rouge) and HB 423 by Rep. Michael Melerine (R-Shreveport).
“These bills bring transparency to litigation funding sources and medical costs actually paid versus those billed, respectively, and are part of Commissioner Temple’s overall package,” Venable said in an email to the Record. “These proposals have received broad bipartisan support, but we can’t let off the gas now. LLAW encourages voters to call their legislators and Gov. (Jeff) Landry to let them know Louisiana needs legal reform now.”
Temple also asked Louisianans to support the reforms in this year’s legislative session.
“This is the only path to creating a competitive and stable insurance market that will help bring premium relief to Louisiana consumers,” he said.