Louisiana Legislators Push Through Auto Insurance Reform Bill
R Street, a pro-tort reform organization, applauded the passage of the legislation, saying the reduction of the jury threshold would reduce shopping for courts viewed as generous to plaintiffs.
Under the current $50,000 threshold, 53% of auto claim disputes in the state are heard before elected judges, providing opportunity to shop for favorable venues for frivolous cases, said R.J. Lehmann, R Street’s director of finance, insurance and trade policy.
“Louisiana‘s costly and uncompetitive auto insurance markets are a big reason it has, for two years in a row, ranked dead last among the 50 states in R Street’s annual Insurance Regulation Report Card,” Lehmann said. “Over the past five years, only Colorado and Michigan have had higher loss ratios for personal auto insurance than Louisiana. Moreover, only Alaska and New York have more concentrated auto insurance markets.”