NEW ORLEANS – Homeowner’s and private motor vehicle insurance Bill 148 (HB148) passed the House during the April 30 legislative session and now moves to the Senate. The Bill gives the Louisiana Insurance Commissioner the ability to reject any insurance rate increases deemed "excessive" without the current prerequisite of declaring the market noncompetitive after a public hearing.
When the insurance market is deemed "uncompetitive," it means there's insufficient competition among insurance companies, leading to limited choices and potentially higher premiums for consumers. Currently this designation is a requirement for the insurance commissioner to implement stricter rate regulations to protect policyholders from excessive pricing.
House Bill 148 also requires insurance companies to disclose prior premium amounts in renewal notices allowing policyholders to easily compare their previous and current premiums.
With 68 in favor and 34 against, HB148 received unanimous support from Democrats and was backed by 37 Republicans. Thirty-four Republicans opposed it, which means more Republicans voted for it than against it. The bipartisan nature of HB148 reflects a shared urgency to address the state's insurance crisis.
What is the problem?
The main objections to HB148 stated so far relate to the fact that it contains elements of a previous Democratic Bill, that it allows "subjective" decisions by the Insurance Commissioner, and that it may discourage insurance companies from doing business in Louisiana if they feel they can’t increase their prices to excessive levels without a public hearing on non-competitiveness.
The provision in HB148 that allows the Insurance Commissioner to reject excessive rates was first introduced in House Bill 576 by Rep. Robby Carter (D-Greensburg), a Bill which was earlier passed by the House Insurance Committee.
The Bill was destined to fail when Republicans at a caucus meeting decided to only support insurance bills authored by Republican legislators. Republicans in favor of HB576 transferred the provision into HB148 that was then introduced by Republican Rep. Jeff Wiley (R-Maurepas).
The other objections to the Bill relates to the Insurance Commissioner’s authority to deny excessively high-priced policies without having to provide justification. But the Bill’s supporters say it would lead to fewer claims and fewer big payouts because policyholders would be better informed and protected.
Governor Landry’s Support
Governor Landry has emphasized the need for a "balanced approach" to address Louisiana's insurance crisis, holding both insurance companies and trial lawyers accountable for high premiums. He has pointed out that Louisiana's auto insurance rates are among the highest in the nation.
"That is why it's time we grant the Insurance Commissioner the power to evaluate and reject excessive insurance rates, regardless of market conditions."
Temple opposition
Louisiana Insurance Commissioner Tim Temple has publicly expressed opposition to the authority that would be granted to him if House Bill 148 passes, stating that it would discourage insurance companies from coming to Louisiana.
"I can’t speak to anyone’s motivation, but the only additional power this legislation gives me is the authority to deny rates for political, personal and other subjective reasons," said Temple. "I’ve made that clear to the legislature and will continue working to help them understand what the bill does and why it is harmful to our insurance market."
Rep. Gabe Firment, R-Pollock, is the chair of the Insurance Committee and is a Landry supporter, but he also urged his colleagues to reject HB148, saying it is "problematic for some Republican representatives."
Real Reform Louisiana
Real Reform Louisiana, a nonpartisan nonprofit organization comprising Republicans, Democrats, and Independents whose stated aim is to “lower household costs, drive down car insurance rates, and stop insurance companies from rigging the system,” rejects Temple’s reasoning.
“Commissioner Temple has repeatedly pushed the industry’s agenda at the expense of Louisiana policyholders,” said Ben Riggs, executive director of Real Reform Louisiana.
Other House Bills
Several insurance-related Bills are currently being discussed in the Senate Judiciary Committee or the House:
- House Bill 439: proposes to cap attorney contingency fees (the percentage of lawsuit winnings they get) to 10% on the first $15,000 in damages. It also seeks to eliminate the "Housley presumption," a legal standard that currently benefits plaintiffs by presuming injuries are caused by an accident if the individual was in good health beforehand.
- House Bill 450: seeks to eliminate the "Housley presumption," which allows courts to presume that a plaintiff's injuries were caused by an accident if the individual was in good health prior to the incident.
- House Bill 519: introduces fines for handheld cell phone use while driving.
- House Bill 434: Proposes limitations on damages car accident payouts to those without compulsory car insurance.
McCollister's colorful opposition
On May 1, Rolfe McCollister, founder of the Baton Rouge Business Report and CEO of McCollister & Associates LLC, publicly criticized the Governor in a Baton Rouge Business Report column titled "Under Gov. Landry, is Louisiana open for business, or lawsuits?"
McCollister said of the Governor, “He and a handful of powerful state legislators were at a hunting lodge in Texas with a pair of influential trial attorneys hunting turkey and talking auto insurance, specifically about whether lawmakers will make it harder for lawyers to collect big payouts for clients injured in car accidents.”
While the Governor has publicly endorsed HB418 and HB519, he has not taken an official position on House Bills 439, 450, or 434.
“Landry says, “There’s a lot of blame to go around,” and wants to find a “balanced approach” so he can “help citizens.” He claims the tendency to file lawsuits is a “cultural problem,” said McCollister in his column. "Blah, blah, blah. Sorry, governor, if I don’t believe your words. Actions speak louder, and I remember your veto last summer when you had a chance to do the right thing.”
In June 2024, Governor Jeff Landry vetoed House Bill 423, which would have made it harder for ordinary people injured in accidents to recover full compensation for their medical expenses, thereby helping insurance companies limit payouts. The Bill proposed to limit the amount paid by their health insurance or Medicare, rather than the full amount billed. Governor Landry argued that the bill would unfairly penalize responsible individuals who maintain health coverage and primarily benefit insurance companies. He emphasized that similar reforms in the past did not lead to reduced insurance premiums for Louisiana residents.
