Louisiana advances several auto insurance-related bills

The Louisiana Legislature is advancing a range of auto insurance-related bills, reflecting differing views on what is driving rates in the state and how to address them, according to a report from AM Best.

The proposals include changes to rate regulation, tort law, and the authority of the insurance commissioner.

On May 21, the Senate approved its version of House Bill 148, which would expand the insurance commissioner’s authority to reject rate filings considered excessive and require such filings to be made public. The measure has the backing of Governor Jeff Landry, who has argued that insurers’ financial results in Louisiana outpace those in Florida and Texas. Insurance Commissioner Tim Temple (pictured above) has pushed back on that claim, saying loss ratios are not a direct measure of profitability.

Temple has also opposed HB 148. In a statement, he said the bill could introduce regulatory uncertainty and lead insurers to reconsider their presence in the state. The bill is now back in the House for concurrence, scheduled for May 27.

The House has also advanced several bills focused on tort reform. House Bill 434, which has been sent to the governor, would increase the threshold at which uninsured drivers can recover bodily injury medical expenses, raising the limit from $15,000 to $100,000. Another measure, House Bill 450, would require plaintiffs to demonstrate that injuries are directly related to the accident.

Other proposals still under consideration include a bill that would bar drivers found to be at least 51% at fault in a crash from receiving damages for injuries. Lawmakers are also weighing changes to what juries can hear regarding medical expenses, allowing disclosure of the amounts actually paid rather than what was billed. Another bill under review would prevent undocumented immigrants injured in a crash from recovering general damages.

On tort reform, Landry and Temple appear aligned. Temple has long argued that reducing litigation could help bring down insurer costs and lower premiums.

If passed, the legislative package would represent the most significant changes to auto insurance and related legal frameworks in the state in more than two decades, Temple said in a statement. He added that the process is ongoing and urged continued support for the proposals.

A separate bill that would have changed the insurance commissioner’s role from elected to appointed will not advance this session.

While lawmakers stated the measure was not intended as a critique of the current commissioner and would have allowed Temple to serve out his term, he opposed it, saying it did not address the state’s broader insurance challenges.