Louisiana's insurance commissioner says he's sponsoring a package of bills that will lower the state's auto insurance rates while enticing insurance companies to do business in the state.
Insurance Commissioner Tim Temple says he wants to insure that consumers receive claims that are just and accurate. However, he wants lawmakers to pass a series of bills that address legal reform in auto insurance. Specifically, he wants lawmakers to cap the amount of money car crash victims can receive from a lawsuit against an insurance company.
"Study after study shows that our high rate of medical and legal utilization are the primary drivers in our state," Temple said during a press conference in Geismar on Thursday. "In Louisiana, when we get in an accident, we're at more than twice the national average to file a bodily injury claim and more than twice to litigate. Those are the biggest cost drivers in the state, and that's what the majority of the legislation is going to focus on."
Temple says he's backing around 20 different bills dealing with auto insurance reform in Louisiana. While he understands that some of those bills will cause some consternation among some Louisiana residents, he says drastic times call for drastic measures.
"I never think that there's one silver bullet," Temple said. "When I hear from businesses and families that they are at the breaking point, that means the system is broken."
Temple says the nearly 20 bills he supports will bring transparency to the state's auto insurance industry. He also says it will attract more insurance companies to the state, bringing competition and lower rates to consumers.
"I would like to send a message to insurance companies that Louisiana is open for business, but I can't do that unless we pass and sign meaningful reform this session," Temple said.
The regular legislative session begins on Monday.
