Gov. Jeff Landry discusses insurance crisis, collateral sources
BATON ROUGE, La. (BRPROUD) — Gov. Jeff Landry held a press conference about legal reforms, including the insurance crisis at the Louisiana State Capitol on Tuesday afternoon.
During the press conference, Gov. Landry discussed the problems with property, auto and healthcare insurance. Landry noted that he is aware of the high premiums for property insurance in the state, making it unaffordable for residents.
"As governor, I have consistently said that I am committed to finding a balanced solution that supports both the industry but protects citizen's rights," said Landry. "Commissioner of insurance, Tim Temple, has recommended changes to the property and auto insurance laws, emphasizing market demands. We've recently signed several bills into law aimed at providing relief to homeowners."
Landry reports that since 1994, the Louisiana Legislature has passed 250 bills that were pro-insurance industry with the promise of reducing rates.
HB337, SB323, SB499 and HB88 are a few bills Landry listed during the presser aimed at the insurance crisis and were passed based on feedback from the insurance companies.
HB337 eliminates Louisiana's direct action statute and aligns Louisiana with 47 other states, according to Landry.
SB323 adjusts the deadline for insurers to initiate and make offers for loss of adjustments with a new penalty cap for noncompliance.
SB499 exempts commercial automobile insurance from the uninsured motorist requirement.
HB88 changes the venue provisions for foreign insurers.
Landry discussed what the collateral source doctrine is and how it affects Louisiana.
"The Collateral Source doctrine is a principle in tort law that ensures the insured victims receives full compensation for the damages, regardless of any third-party payments," said Landry. "The doctrine aims to protect the working class by preventing liable parties from reducing their payment responsibilities based on the injured insurance coverage."
Gov. Landry vetoed HB423, which would be costly to those who have enrolled in health insurance.