Temple doubles down on support for auto insurance reform bills

Tim Temple
Photo credit LABI

Louisiana lawmakers continue to debate legal reform bills that they believe will reduce auto insurance rates in Louisiana. Although the sponsors of those bills aren't guaranteeing that these bills will indeed bring lower car insurance rates, the state insurance commissioner says history is on their side.

"The proof is in the pudding," Louisiana Insurance Commissioner Tim Temple said to WWL's Tommy Tucker, adding that last year's property insurance reform bills are leading to lower rates with eight insurers filing for rate decreases this year.

With regards to auto insurance, Temple says legal reforms in other states have led to drivers there seeing cheaper car insurance.

"Georgia has done it. Texas is in the process of doing it. South Carolina has tried to do it. Oklahoma is in the process of doing it," Temple said. "There are states all around the country that are tackling legal reform, and their legislatures and governors and everybody else are not pounding the table saying you have to mandate. It works, though."

According to Temple, the bills that deal with medical transparency are among the most important bills in the package.

"When you get into an accident and you have medical bills and seek treatment, most people use their health insurance," Temple said. "What's happening is sometimes referred to as phantom damages (or) unjust reward. They're getting more than their health care provider paid out."

Temple says personal injury lawyers often try to recover the full amount of medical care billed to a crash victim, instead of the amount the victim's health insurance company paid out. The bill Temple referenced would allow a judge and jury to see both the amount of money a health care provider billed the insurance company and how much money the insurance company paid out.

"Then the judge and the jury would decide how much money you would be entitled to," Temple said.

Temple says if lawmakers approve those bills, he'll do everything he can to drive down car insurance rates in Louisiana.

"If we pass all this legislation that's strong, I'm going to pressure insurance companies by saying, 'Guys, give us the credit,'" Temple said. "I can't make them do it, but I can engage them in conversation and say, We're passing strong legislation. Bet on the good outcome in Louisiana and start to get more competitive."

Featured Image Photo Credit: LABI