Tuesday, May 21, 2024

LABI issues statement on Senate decision to amend critical insurance legislation

by BIZ Magazine

BATON ROUGE – The Louisiana Association of Business and Industry (LABI) released the following statement after the Louisiana Senate chose to reject several imperative changes to the bad faith statute for property insurance. 

HB 601 by Representative Mike Huval made critical clarifications for both policyholders and insurers as to their obligations to ensure a swift resolution of the claims process. Senator Bret Allain amended the bill on the Senate Floor, removing critical amendments that were adopted in Senate Insurance. These detrimental amendments removed the clarity provided by defining key terms and obligations—importantly, the definition of what constitutes satisfactory proof of loss. The amendment passed on a 25-13 vote, prompting Senator Kirk Talbot, who was handling the bill, to return the bill to the calendar. 

“We are disappointed in today’s Senate vote on an imperative first step to improving and stabilizing the insurance market throughout the state,” said LABI’s General Counsel Lauren Hadden. “The amendments voted on today effectively gutted much-needed guidance clarifying each party’s obligations in the claims process, and in fact further muddled the duties and obligations imposed on each party, thereby inevitably leading to more litigation. In voting for the amendment, 25 senators left businesses and policyholders constrained by an insurance market that is unaffordable and limited in availability.” 

“We commend Representative Huval, Senator Talbot and their staff for their hard work and perseverance throughout the legislative process,” Hadden continued. “They worked tirelessly to prepare a bill that provided clarity to both the policyholder and the insurer and, in turn, improve the stability and affordability of the property insurance market. Our work will continue as we seek solutions that consider the interests of the businesses and families forced to carry the weight of these burdens.” 

You may also like

-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00