28-05-2025
Jim Beam column:Temple likes three auto bills
Louisiana legislators making auto insurance changes but one bill causing concern.(Image courtesy of
Auto insurance reform has been the major issue of the current legislative fiscal session and six bills have taken the spotlight. Two of five House bills have been approved by both chambers. The House has to agree to Senate changes in three of its bills and a Senate bill is awaiting a final House vote.
The Advocate said the Senate has passed five bills that affect who can sue and how much they can collect. It added that Insurance Commissioner Tim Temple, the insurance industry and their business allies say the legislation would reduce payouts and thus reduce rates.
Sen. Patrick McMath, R-Covington, said, 'What just passed out of the Senate, and if passed into law, would be the most comprehensive insurance reform in Louisiana history. These changes are geared toward addressing the unaffordable car insurance crisis in Louisiana.'
Only time will tell if that's true and Sen. Jay Luneau, D-Alexandria, doesn't agree. He has been a spokesman for trial lawyers who are often blamed for high auto insurance costs. Those attorneys are perhaps the biggest losers in the six bills.
'We're just taking away more people's rights, and rates won't go down,' Luneau said. The newspaper said he added that the Senate's rush to approve bills with late changes 'leads to bad legislation.'
One of the six bills, House Bill 148, is extremely controversial. It's a favorite of Republican Gov. Jeff Landry and a loser as far as Temple is concerned. The legislation would let the insurance commissioner reject insurance premium increases even when they are justified by the facts.
Temple said, 'It's a false claim that rates are high because the commissioner doesn't have some magical power. It doesn't address the fundamental problem in Louisiana —bodily injury and legal abuse.'
Earlier news reports have said Landry favors HB 148 so he can blame Temple when insurance rates increase. The House has to agree to the Senate changes to the bill.
During a recent speech, Landry said a study by the National Association of Insurance Commissioners shows that Louisiana is an outlier on one key metric: 'Our minor injury claims are double the national average,' he said.
The Advocate said Temple has said Louisiana has had twice as many minor injury claims as New York even though that state counts five times as many residents. So the two officials do agree on something.
OK, here are the other five bills:
HB 431would bar drivers responsible for at least 51% of the accident from receiving a damage award to cover their injuries. Under current law, a driver responsible for 51% of the accident can collect a payment equal to 49% of the overall damage award. The House has to agree to Senate changes on that bill.
HB 434 would disallow a driver without car insurance from collecting an award for bodily injury medical expenses for any amount below $100,000, up from $15,000 today. It is awaiting the governor's signature.
HB 436 would prohibit undocumented immigrants who are injured in car accidents from collecting general damages. The House has to agree to Senate changes.
HB 450 would require someone who sued over injuries in a car accident to show that the injuries actually occurred during the accident. The bill goes to the governor.
Senate Bill 231 would allow lawyers for insurance companies to tell jurors how much people injured in wrecks actually pay in medical bills. Under current law, jurors hear the total amount billed, regardless of what the plaintiff paid. The bill has passed the Senate and is in a House committee.
The Advocate reported that Temple said House Bills 431 and 450 and SB 231 would 'move the needle forward.'
Senate Democrats argued against the bills, saying earlier pro-industry legislation hasn't brought rates down. They also pointed to an April report by the National Association of Insurance Commissioners that said in 2023 insurance companies in Louisiana had the third highest underwriting profit, the fourth lowest loss ratio and the fifth highest return on net worth.
Legislators appear to have made some progress in tackling major reasons for Louisiana's unbelievably high auto insurance rates. However, it may take more time and more legislation than we would like to determine if that's true.
Jim Beam, the retired editor of the American Press, has covered people and politics for more than six decades. Contact him at 337-515-8871 or Reply Forward
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