The House passes legislation making revisions to the tort reform effort that was vetoed by the Governor, winning a veto-proof majority for the bill in the process.
Bill sponsor Chalmette Representative Ray Garofalo says the legislation requires insurance companies to meet with the Insurance Commissioner to see how much money this legislation has saved them and if the companies are saving money then they are required to reduce rates accordingly.
The bill makes a few adjustments relative to legislation that was vetoed by Governor Edwards, namely decreasing the jury trial threshold further to 5,000 dollars from the previous bill’s 10,000 dollars. The current threshold is 50,000 dollars.
New Orleans Representative Mandie Landry says just because companies are required to meet with the Commissioner, doesn’t mean he can, or will force them to lower rates.
“There has been not one person from the insurance industry to testify that they will lower their rates because of this legislation, not one, zero,” says Landry.
Landry noted even the ten percent promised reduction in rates would still give us some of the top five highest rates in the nation, which needs to be addressed through other legislation.
Erath Representative Blake Miguez they’ve worked hard to make sure this bill ensures Louisiana’s legal system more closely reflects our neighbors who pay much lower premiums.
“We have the second highest auto insurance rates in the country, so don’t you think that we should be looking at things like this or having a valid discussion to make these changes to lower our auto insurance rates?” asked Miguez.
But Amite Representative Robby Carter tore into the bill over how it would impact our ability to fund court systems and ensure injured victims receive just compensation.
“I’m not going to waste a lot of time to tell you how bad this bill is, this ain’t even putting lipstick on the pig this is a pig from the beginning,” says Carter.
The bill heads to the Senate. Earlier Monday the House passed another tort bill on wider margins that is considered less stringent.