Tort reform supporters are taking a victory lap today after yesterday’s bipartisan passage of legislation aimed at lowering auto insurance rates by changing the way lawsuits are handled.
Political analyst Bernie Pinsonat calls it a historic achievement in what had become one of the most prominent political issues in the state.
“We have been talking about it for probably ten years and most campaigns in 2019 by the legislature were based on them promising to do something about the high cost of insurance,” says Pinsonat.
The legislation lowers the jury trial threshold, changes collateral source law, and includes a number of other smaller changes to court proceedings.
Pinsonat says the bill is packed with items insurers say will save them a lot of money. Once Governor Edwards signs it Pinsonat says the ball moves into the Insurance Commissioner’s court.
“Jim Donelon is going to be pressing these companies to start reducing what we pay for insurance, because that is one of the responsibilities of his job,” says Pinsonat.
The legislation does not include a mandate for lower premiums.
Pinsonat says the legislation seemed dead in the water up until just a few hours before the session closed when the Governor struck a deal with Republicans.
“There was an agreement on a particular issue called collateral source that the proponents of rate reductions claimed had to be in the bill,” says Pinsonat.
Governor Edwards indicated he will sign the legislation into law.
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