GNO, Inc. Sunday Night Highlight – Governor Signs Largest Tort Reform Effort in State History Into Law

This past Wednesday, Louisiana Governor Jeff Landry held a press conference where he signed the largest tort reform effort in Louisiana history into law. Bills signed included:

• Direct Cause (aka “The Housley Presumption”) – House Bill 450 – requires someone who sues over injuries in an accident to show that the injuries actually occurred during the accident
• Uninsured Motorists – House Bill 434 – disallows a driver without car insurance from collecting an award for bodily injury medical expenses for any amount below $100,000, up from $15,000 today
• Dashcam Discount – House Bill 549 – requires insurance companies to give trucking companies a 5% discount when they install dashboard cameras on their large trucks
• Comparative Fault – House Bill 431 – bars drivers responsible for at least 51% of an accident from receiving a damage award
• Insurance Commissioner Authority – House Bill 148 – grants the Insurance Commissioner greater authority to hold down rates

The impetus for these reforms is that, while Louisiana is only slightly above the national average when it comes to the frequency of car accidents, the tendency for people to claim they were injured in those accidents is nearly 200% higher than the rest of the country, according to the most recent bodily injury claims data from the National Association of Insurance Commissioners (NAIC).

“Today, we’ve taken steps to shield Louisianans from frivolous lawsuits driven by trial lawyers—using a data-driven strategy. And we made it clear to insurance companies that they must answer to their policyholders,” said Governor Jeff Landry.

You can read more here and here.

You can watch the press conference here.