Latest news with #HouseBill576
American Press
07-05-2025
- Automotive
- American Press
Jim Beam column:Landry loves political power
Louisiana's Republican Gov. Jeff Landry has never met a political power that he doesn't like. This time it's an auto insurance situation.(Photo courtesy of The Louisiana Illuminator). Louisiana's Republican Gov. Jeff Landry, who in the last year has been given more power and authority than any governor since the late-Huey P. Long nearly a century ago, said he doesn't understand why the state's insurance commissioner refuses to accept more power. Landry made that statement during an April 16 House Insurance Committee meeting on House Bill 576 by Rep. Robby Carter, D-Amite, that would give the insurance commissioner greater freedom to reject excessive auto insurance rates. 'The last time I checked,' Landry said, 'I've yet to find a politician not willing and eager to accept more power.' Commissioner Tim Temple also testified at that hearing that under current law he can suppress rates for practical reasons, primarily if the rates are actuarily justified. He said Carter's bill would return to the days when the state had an insurance rating commission that often set rates for political reasons. Temple said three successive insurance commissioners elected in the 1980s and 1990s went to prison after facing accusations of accepting illegal favors from insurance companies. The commissioner and others have said it's obvious that Landry wants to put greater responsibility on the commissioner so he can blame Temple if car insurance rates keep rising. Landry insists the Legislature has passed laws to lower rates but premiums keep rising and insurance companies are making unbelievable profits. He was extremely emotional during that hearing. The governor said if lawmakers didn't pass Carter's bill, he would bring them back in a special session to get it done. Carter's bill cleared that committee with a 13-4-1 vote and was scheduled for full House debate on April 28. However, Carter put off a vote twice, apparently because he lacked the support the legislation needed. Landry proved on April 30 that he wanted that Carter bill passed and that he would do whatever it took to make it happen. The Advocate reported that the governor got Rep. Jeff Wiley, R-Gonzales, to allow Rep. Brian Glorioso, R-Slidell, to allow an amendment to one of his bills (HB 148) that was actually the Carter bill that Carter couldn't get passed in the House. The newspaper said Landry 'powered over Republican opponents in the state House' and the amendment was approved 67-33. Only 36 Republicans supported it, while 33 opposed it. All 31 Democrats voted for the amendment. The bill passed the House 68-34 and went to the Senate. To their credit, Republican Reps. Brett Geymann of Moss Bluff, Chuck Owen of Rosepine, Rodney Schamerhorn of Hornbeck and Phillip Tarver of Lake Charles were four of the 33 who opposed the amendment. Rep. Paula Davis, R-Baton Rouge, who worked for the Insurance Department for a decade, explained why passage of the bill was a terrible idea. 'We're sending a message to the industry that we're an unstable place to do business,' Davis said. Rolfe McCollister, author and CEO of the Baton Rouge Business Report, isn't buying Landry's 'balanced approach' between insurance companies and trial lawyers on auto insurance. McCollister said in a column that he remembered Landry's veto of a critical auto insurance bill last year 'when you had a chance to do the right thing. This is a matter of who the people will trust …' The Louisiana Association of Business and Industry on June 18, 2024, said Landry's veto of that bill that held promise in lowering rates was a major disappointment. It said the legislation 'was a compromise bill that helped bring fairness, predictability and transparency to our legal system.' LABI added, 'The governor's signature would have sent a resounding message to insurance carriers throughout the state and the country that Louisiana is indeed open for business as we work to fix our unstable insurance market.' Landry's veto last year took the steam out of insurance reform that could have been more successful. And he's been ranting and raving about passing the Carter bill since it was introduced. Rep. Gabe Firment, R-Pollock, chair of the House Insurance Committee, and a strong Landry supporter, told The Advocate in an interview how dangerous the Carter bill is. 'I think this bill has the potential to completely nullify all the good bills we may pass and the potential to negate all the property reforms we made last year,' Firment said. 'It will send a chilling effect to the entire market. It could be catastrophic for our insurance market.' 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 Add reaction
American Press
26-04-2025
- Business
- American Press
Fight over insurance costs to hit House floor
Gov. Jeff Landry is dueling with Insurance Commissioner Tim Temple over the best ways to lower insurance rates for consumers. (Quinn Marceaux/LSU Manship School News Service) By Avery Sams | LSU Manship School News Service BATON ROUGE — Gov. Jeff Landry and Louisiana insurance commissioner Tim Temple are at odds over how to fix the state's insurance cost crisis–one of the most important issues being debated in the 2025 legislative session. Tensions have been high as the two men have held competing news conferences and took turns testifying before a House committee, and the fight could hit the House floor as early as Monday. Landry testified before the House Committee on Insurance on April 16 in support of House Bill 576, which would give Temple more power to block excess insurance rates. 'What we are here today to talk about is giving the insurance commissioner the ability to hang a Sword of Damocles over insurance companies so that when we make the adjustment in the tort law … our people get the benefits that we claim they should,' Landry said. 'The bill is not designed as a hammer for the insurance commissioner, the bill is designed as a safeguard.' Temple followed in direct opposition, not seeing the need to grant more power to himself or future commissioners. 'I think the system we have works,' Temple simply put. The bill would give more power to the commissioner to deny excessive insurance rates and discretion to decide what rates are excessive, inadequate, or unfairly discriminatory. The committee advanced the bill on a 13-4 vote. Temple, who ran without opposition in 2023 and is not a Landry appointee, continued to oppose the governor's idea of a 'balanced approach' – requiring sacrifices from both insurance companies and the plaintiff's lawyers who sue them for damages. It is a rare these days to see such an open fight between a governor and another statewide official Several other bills advanced by the committee are also headed to the House floor, and lawmakers will have to decide on the best approach to easing or halting the rise in auto insurance rates that has angered consumers. House Bill 248, introduced by Rep. Roger William Wilder III, R-Denham Springs, also would give the commissioner more discretion – in this case to decide how information insurance companies could keep confidential and how much they must make public Temple, who has worked in the insurance industry, again opposed the bill introduced under Landry's agenda, followed by similar opposition from Ronnell Nolan, chief executive and president of Health Agents for America, a trade group. 'My issue is about power…The bill lacks a standard of what the commissioners can do and can't do,' Nolan said. In Temple's own opposition, he told the committee that he is concerned that this bill and others might hinder new companies from coming to Louisiana. 'We're trying to promote and encourage companies to come to Louisiana…We shouldn't be telling people this is a magic thing that will fix everything because it won't,' Temple said. The other insurance bills awaiting House floor debate include two that Temple supported. One was House Bill 440, which would eliminate the mandatory use of health insurance after a car accident. The bill goes on to say that in the case of a lawsuit and if the plaintiff chooses not to use their health insurance, the defendant would be able to presume that the plaintiff did not try to mitigate damages. Temple also favored House Bill 379, which would allow customers to opt for property arbitration regarding insurance property claims. Arbitration lets people handle their disputes outside of a traditional courtroom setting. Consumers would be offered certain discounts if they opt for this endorsement, but these clauses usually require that consumers waive their right to litigate in court. The House Insurance Committee advanced the bill 11-7 after back and forth between committee members and opponents like Luke Williamson, a trial lawyer. Williamson voiced concerns about how this might prey on consumers' lack of understanding that they are waiving their rights to litigate in hopes of receiving a discount from their insurer. 'I think it could increase the lawsuit process because it's [arbitration] too complicated,' Williamson said. But Rep. Gabe Firment, R-Pollock, countered: 'Aren't we to the point in our state where we can trust people to make decisions for themselves?' House Bill 549, which would provide premium discounts for commercial vehicles that install dashboard cameras and telematic systems, passed unanimously to be heard on the House floor. This is an effort to increase safety in commercial vehicles like semi-trucks and construction equipment and prevent questionable lawsuits against them.
Yahoo
22-04-2025
- Automotive
- Yahoo
Louisiana Gov. Jeff Landry's approach to lower insurance rates could cast political fate
Louisiana Gov. Jeff Landry, a conservative Republican, drew praise from liberal Democrats after he railed against large corporations and called for stricter regulations on the insurance industry — an uncommon spectacle that suggested the governor is staking his political fate on lowering policy rates. Testifying in a nearly two-hour exchange Wednesday with lawmakers on the House Insurance Committee, Landry urged his fellow Republicans to break from their traditional alignment with insurance companies and vote in favor of House Bill 576, a Democrat-backed proposal that's part of an agenda Landry has described as a 'balanced approach' to the decades-old rate debate between personal injury lawyers and the insurance companies they sue. Louisiana pollster John Couvillon said Landry can't really afford not to take on the insurance issue because policy premiums are by far the most overwhelming concern of voters and likely outweighs any risk associated with bipartisanship. 'If he can bend the cost curve on insurance rates, that's something he can take credit for,' Couvillon said. 'Who he works with to do it is much more insider baseball. I don't know if that kind of perception would matter with the average Louisiana voter who's really more concerned with high insurance rates.' Landry has included multiple bills on his agenda that target both insurance companies and trial lawyers, but House Bill 576 could be part of a larger political calculation that affords him more opportunities for reward than risk. Cosponsored by moderate Democrats Robby Carter of Amite and Chad Brown of Plaquemine, the bill would give the state insurance commissioner the power to prohibit any insurance rates considered 'excessive' during any market conditions. Currently, the commissioner can only exercise that power after holding a public hearing in which someone proves that the insurance market lacks competition. The bill applies to all lines of insurance, though Landry has focused his attention mostly on auto and property insurance rates. Spikes in homeowner premiums occurred after a series of destructive storms starting in 2020 and have been mostly limited to the coastal regions. Premiums for auto insurance have long been elevated across Louisiana, and lawmakers have struggled to identify a clear reason why, believing the problem is rooted in policy decisions. Landry and Brown sat shoulder-to-shoulder Wednesday as they presented the measure, which includes an amendment the governor said he wrote himself and modeled after a law in Mississippi. Louisiana's neighbor has average auto insurance rates that are nearly half the amount of Louisiana's, according to U.S. News & World Report. Brown's bill cleared the committee in a 13-4 vote but still has a ways to go before final passage, and Landry's office would not say if the governor will continue to shepherd the bill over each subsequent hurdle. 'It certainly helped that the governor was there to support it,' Brown said in an interview, adding that he hopes Landry will testify at subsequent hearings. He thinks the governor has sent a clear enough message to Republican lawmakers about what they need to vote for. Landry paired his appearance with rhetoric that potentially puts him at odds with his own party, which has traditionally favored pro-capitalist narratives. 'We're losing sight of something that's been going on in this country for quite some time, and that is consolidation … That is exactly why we need this law,' Landry said, 'because we have allowed corporations to control large market shares in violation of Sherman [Antitrust Act] again and again.' Congress passed the Sherman Act in 1890 to establish rules for competitive trade and prevent unfair monopolies. Rep. Edmond Jordan of Baton Rouge and New Orleans Reps. Matt Willard and Mandie Landry, all Democrats, thanked the governor for putting effort into the issue and trying to hold insurance companies accountable. They joined Landry in arguing tort reform legislation, which is based on the idea that trial lawyers have an unfair advantage in court, has not worked. One of the four Republicans who voted against the Brown bill, Rep. Jay Gallé of Mandeville, told his colleagues it would undermine 'all free market principles' of supply and demand and ultimately discourage new insurance companies from coming to Louisiana. He argued it would give the insurance commissioner sole authority to arbitrarily decide rates. Brown clarified the commissioner would only be able to approve or reject rates, not set them. The governor argued Louisiana could never have a 'free market' for insurance because the law requires drivers and homeowners to have coverage. 'The free-market rules do not apply when the consumer is mandated to buy something,' Landry said. In a later interview, Gallé said he was in an uncomfortable situation having to choose between supporting his party leader versus following his conscience and beliefs. 'When it is a quote-unquote 'governor's bill,' the pressure is already on you, and when he takes the time to come and sit in the room that adds a little more pressure,' Gallé said. 'I hated to go against the governor, but at the end of the day I had to go with what's best for my district.' LA GATOR applications More than 39,000 Louisiana students apply for LA GATOR program, Education Department reports Landry suspends late fees at OMV Louisiana Office of Motor Vehicles suspends driver's license late fees amid system issues Whether the Brown bill would even have an impact on insurance rates is questionable. Insurance Commissioner Tim Temple, who is opposed to it — and in a public feud with the governor — has said actuaries in his office have reviewed high policy rates in Louisiana and found them to be justified based on losses insurers have accrued in defending lawsuits. The governor's bill would back the commissioner into a corner, forcing him to choose between rates based on market data or rates artificially suppressed for political reasons, Temple said. The governor has cast suspicion on Temple's opposition to the bill, repeating an argument Rep. Mandie Landry made earlier in the hearing when she suggested to the governor that politicians usually don't shy away from gaining more power. 'I've never seen a politician not want more power,' the governor said. At the same time, some claim the governor is focused on Brown's proposal because he hopes giving more power to Temple would allow him to blame the commissioner if rates fail to improve. Temple's office pointed to Gov. Landry's April 9 discussion with conservative radio host Moon Griffon in which the governor suggested as much. 'If we … implement that here, giving our insurance commissioner those tools, and if the rates don't go down, it's on him,' the governor told Griffon. But according to Couvillon, deflecting blame away from the governor would be a more difficult task than most people realize. Voters are much more familiar with the governor than the insurance commissioner, so it would take a very effective messaging strategy to deflect any blame. 'Voters tend to hold the governor accountable for things like high insurance rates whether it is a deserved measurement or not,' Couvillon said. If Gov. Landry's agenda has little effect and coverage premiums remain about the same, there's enough time to try to recast his political fate and convince voters to overlook it before his re-election bid in 2027. The greatest risk in the governor's calculation lies in the possibility that insurance rates continue to increase, which would be a much bigger problem for Gov. Landry, Couvillon said. On the other hand, the insurance commissioner has said repeatedly previous reforms have started having an impact on homeowner coverage lines. On Wednesday, Temple told the committee eight insurers have filed rate decreases for 2025. 'It is working,' Temple said. 'Rates are coming down.' House Bill 576 will next move to the House floor for consideration. — The Louisiana Illuminator is an independent, nonprofit, nonpartisan news organization driven by its mission to cast light on how decisions are made in Baton Rouge and how they affect the lives of everyday Louisianians, particularly those who are poor or otherwise marginalized. This article originally appeared on Lafayette Daily Advertiser: Louisiana Gov. Jeff Landry insurance stance could cast political fate
Yahoo
18-04-2025
- Business
- Yahoo
Gov. Landry's approach to lower insurance rates could cast his political fate
Gov. Jeff Landry, flanked by Deputy Chief of Staff Lance Maxwell and Executive Counsel Angelique Freel, waits to testify at the House Insurance Committee on April 16, 2025. (Photo credit: Wes Muller/Louisiana Illuminator) Gov. Jeff Landry, a conservative Republican, drew praise from liberal Democrats after he railed against large corporations and called for stricter regulations on the insurance industry — an uncommon spectacle that suggested the governor is staking his political fate on lowering policy rates. Testifying in a nearly two-hour exchange Wednesday with lawmakers on the House Insurance Committee, Landry urged his fellow Republicans to break from their traditional alignment with insurance companies and vote in favor of House Bill 576, a Democrat-backed proposal that's part of an agenda Landry has described as a 'balanced approach' to the decades-old rate debate between personal injury lawyers and the insurance companies they sue. Louisiana pollster John Couvillon said Landry can't really afford not to take on the insurance issue because policy premiums are by far the most overwhelming concern of voters and likely outweighs any risk associated with bipartisanship. 'If he can bend the cost curve on insurance rates, that's something he can take credit for,' Couvillon said. 'Who he works with to do it is much more insider baseball. I don't know if that kind of perception would matter with the average Louisiana voter who's really more concerned with high insurance rates.' Landry has included multiple bills on his agenda that target both insurance companies and trial lawyers, but House Bill 576 could be part of a larger political calculation that affords him more opportunities for reward than risk. Cosponsored by moderate Democrats Robby Carter of Amite and Chad Brown of Plaquemine, the bill would give the state insurance commissioner the power to prohibit any insurance rates considered 'excessive' during any market conditions. Currently, the commissioner can only exercise that power after holding a public hearing in which someone proves that the insurance market lacks competition. The bill applies to all lines of insurance, though Landry has focused his attention mostly on auto and property insurance rates. Spikes in homeowner premiums occurred after a series of destructive storms starting in 2020 and have been mostly limited to the coastal regions. Premiums for auto insurance have long been elevated across Louisiana, and lawmakers have struggled to identify a clear reason why, believing the problem is rooted in policy decisions. Landry and Brown sat shoulder-to-shoulder Wednesday as they presented the measure, which includes an amendment the governor said he wrote himself and modeled after a law in Mississippi. Louisiana's neighbor has average auto insurance rates that are nearly half the amount of Louisiana's, according to U.S. News & World Report. Brown's bill cleared the committee in a 13-4 vote but still has a ways to go before final passage, and Landry's office would not say if the governor will continue to shepherd the bill over each subsequent hurdle. 'It certainly helped that the governor was there to support it,' Brown said in an interview, adding that he hopes Landry will testify at subsequent hearings. He thinks the governor has sent a clear enough message to Republican lawmakers about what they need to vote for. Landry paired his appearance with rhetoric that potentially puts him at odds with his own party, which has traditionally favored pro-capitalist narratives. Louisiana lawmakers dissect personal injury laws as attorney-legislators protest 'We're losing sight of something that's been going on in this country for quite some time, and that is consolidation … That is exactly why we need this law,' Landry said, 'because we have allowed corporations to control large market shares in violation of Sherman [Antitrust Act] again and again.' Congress passed the Sherman Act in 1890 to establish rules for competitive trade and prevent unfair monopolies. Rep. Edmond Jordan of Baton Rouge and New Orleans Reps. Matt Willard and Mandie Landry, all Democrats, thanked the governor for putting effort into the issue and trying to hold insurance companies accountable. They joined Landry in arguing tort reform legislation, which is based on the idea that trial lawyers have an unfair advantage in court, has not worked. One of the four Republicans who voted against the Brown bill, Rep. Jay Gallé of Mandeville, told his colleagues it would undermine 'all free market principles' of supply and demand and ultimately discourage new insurance companies from coming to Louisiana. He argued it would give the insurance commissioner sole authority to arbitrarily decide rates. Brown clarified the commissioner would only be able to approve or reject rates, not set them. The governor argued Louisiana could never have a 'free market' for insurance because the law requires drivers and homeowners to have coverage. 'The free market rules do not apply when the consumer is mandated to buy something,' Gov. Landry said. In a later interview, Gallé said he was in an uncomfortable situation having to choose between supporting his party leader versus following his conscience and beliefs. 'When it is a quote-unquote 'governor's bill,' the pressure is already on you, and when he takes the time to come and sit in the room that adds a little more pressure,' Gallé said. 'I hated to go against the governor, but at the end of the day I had to go with what's best for my district.' Whether the Brown bill would even have an impact on insurance rates is questionable. Insurance Commissioner Tim Temple, who is opposed to it — and in a public feud with the governor — has said actuaries in his office have reviewed high policy rates in Louisiana and found them to be justified based on losses insurers have accrued in defending lawsuits. The governor's bill would back the commissioner into a corner, forcing him to choose between rates based on market data or rates artificially suppressed for political reasons, Temple said. The governor has cast suspicion on Temple's opposition to the bill, repeating an argument Rep. Mandie Landry made earlier in the hearing when she asked the governor if he ever knew of a politician who shied away from having greater control. 'I've never seen a politician not want more power,' the governor said. At the same time, some claim the governor is focused on Brown's proposal because he hopes giving more power to Temple would allow him to blame the commissioner if rates fail to improve. Temple's office pointed to Gov. Landry's April 9 discussion with conservative radio host Moon Griffon in which the governor suggested as much. 'If we … implement that here, giving our insurance commissioner those tools, and if the rates don't go down, it's on him,' the governor told Griffon. But according to Couvillon, deflecting blame away from the governor would be a more difficult task than most people realize. Voters are much more familiar with the governor than the insurance commissioner, so it would take a very effective messaging strategy to deflect any blame. 'Voters tend to hold the governor accountable for things like high insurance rates whether it is a deserved measurement or not,' Couvillon said. If Gov. Landry's agenda has little effect and coverage premiums remain about the same, there's enough time to try to recast his political fate and convince voters to overlook it before his re-election bid in 2027. The greatest risk in the governor's calculation lies in the possibility that insurance rates continue to increase, which would be a much bigger problem for Gov. Landry, Couvillon said. On the other hand, the insurance commissioner has said repeatedly previous reforms have started having an impact on homeowner coverage lines. On Wednesday, Temple told the committee eight insurers have filed rate decreases for 2025. 'It is working,' Temple said. 'Rates are coming down.' House Bill 576 will next move to the House floor for consideration. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
17-04-2025
- Automotive
- Yahoo
Governor Landry backs bill to crack down on insurance rates
NEW ORLEANS (WGNO) — Governor Jeff Landry testified in support of House Bill 576 this morning, calling for major changes to how insurance companies do business in Louisiana. The bill would give the state more control over what insurance companies can charge, specifically granting the insurance commissioner greater authority to reject auto insurance rate hikes that are deemed excessive, unfair or discriminatory. Landry said the legislation is meant to remove roadblocks that have prevented meaningful rate regulation in the past—including lengthy hearings, unclear burdens of proof and automatic rollbacks of competitive market designations. Meet the man in charge of the beautiful landscaping at The Windsor Court 'I want our insurance commissioner to be successful,' Landry said. 'I really believe that there's not one person in this room, or in this state, that doesn't want him and that department to be successful. However, we are consistently top three in the nation in the highest auto insurance rates in the country.' Supporters say it's about holding insurance companies accountable and protecting consumers, however, critics, including Insurance Commissioner Tim Temple, warn the bill could actually backfire, pushing insurers out of the state, shrinking competition, and driving prices even higher. Right now, the average cost of car insurance in Louisiana is nearly $4,000 a year—more than double the national average. Homeowners are feeling it even more, with premiums nearing $14,000 annually. Mayor LaToya Cantrell to attend African American Mayors Association conference in D.C. The bill comes in response to a shrinking insurance market, a problem made worse by years of devastating hurricanes that forced many insurers to leave the state. That's left Louisiana residents with fewer options and skyrocketing premiums. 'Insurance companies continue to report record profits. I am going to beg y'all to stop the circus,' Landry said. The 2025 Regular Legislative Session must adjourn by Thursday, June Landry backs bill to crack down on insurance rates WATCH: Southeastern baseball coach Bobby Barbier previews series vs. UTRGV Meet the man in charge of the beautiful landscaping at The Windsor Court Drugs found in squash at South Texas port of entry, CBP says NFL Draft Analyst Matt Miller breaks down the New Orleans Saints' first round options Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
