Louisiana House Urged to Consider Insurance Reform Package
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CITY — August 15, 2024 — The Louisiana House is currently under pressure to address the state’s soaring insurance costs and legal concerns. Backed by the National Federation of Independent Business (NFIB),the proposed insurance reform package aims to alleviate financial burdens on small businesses and create a fairer legal environment.for more details on the specific House bills, read on.
Louisiana House Urged too Consider Insurance Reform Package
published: 2025-04-24
The Louisiana House is facing calls to address rising insurance costs and legal system fairness through a series of proposed reforms. The state’s small business community is particularly affected, with the National Federation of Independent Business (NFIB) taking a leading role in advocating for change.
The Push for Reform
The NFIB, representing numerous small businesses across Louisiana, is actively encouraging state representatives to support a package of insurance reforms. According to NFIB Louisiana State Director Leah Long,these reforms are designed to lower costs and create a more equitable legal habitat.
Small business owners are tired of being hit with lawsuits and paying high insurance premiums as the system frequently enough favors trial lawyers looking for a big payout.
Leah Long, NFIB Louisiana State Director
Did You Know?
Louisiana’s insurance market has faced significant challenges, including companies leaving the state due to high claims costs and legal expenses [[3]].
Key Bills Under Consideration
The proposed reforms consist of several House bills,each targeting specific aspects of the insurance and legal landscape:
- HB 34 (Rep. Brian Glorioso): Aims to increase clarity in personal injury cases by ensuring all medical evidence is considered when determining awards. This bill seeks to provide juries with a extensive understanding of the injuries sustained.
- HB 434 (Rep. Jason Dewitt): Proposes raising the amount an uninsured individual can collect after a car accident to $100,000. The goal is to incentivize more people to carry insurance, thereby stabilizing auto insurance rates.
- HB 440 (Rep. Chance Henry): Would require individuals injured in car accidents to initially file claims with their health insurer. It also allows insurance companies to seek reimbursement later, potentially reducing court costs and overall insurance rates.
- HB 443 (Rep. Chance Henry): Mandates that lawyers notify defendants of their intent to sue at least 10 days before filing a lawsuit. This pre-suit notification aims to facilitate early settlements and avoid costly litigation.
- HB 450 (Rep. Michael Melerine): Seeks to eliminate the Housley Presumption, which currently assumes an injury was caused by an accident without requiring proof. The bill would require the injured party to demonstrate a direct link between the accident and their injuries.
The Impact on Small Businesses
The NFIB emphasizes that these reforms are crucial for the well-being of small businesses in Louisiana. High insurance costs and frequent lawsuits divert resources away from growth, hiring, and community support [[1]].
Lawsuit abuse has driven up the cost of insurance and made it hard for many small businesses to focus on growth,job creation,and supporting their communities. These bills are real steps toward a legal system that treats everyone the same.
Leah Long, NFIB Louisiana State Director
Pro Tip
Small business owners can stay informed about legislative changes by following updates from organizations like the NFIB and contacting their state representatives directly.
FAQ: Insurance Reform in Louisiana
- Why is insurance reform needed in Louisiana?
- To lower costs for businesses and individuals, and to create a fairer legal system.
- What is the Housley Presumption?
- A rule that assumes an injury was caused by an accident without proof, which HB 450 seeks to eliminate.
- How will these bills affect small businesses?
- By reducing insurance costs and lawsuit abuse, allowing them to focus on growth and community support [[1]].
