May 22, 2024


Statements From Louisiana Insurance Commissioner Tim Temple on the Passage of Collateral Source Legislation and His Support for Changes to Louisiana Citizens


On Collateral Source Legislation, HB 423:

The passage of HB 423 by Rep. Melerine is another step toward establishing balance and transparency in Louisiana's legal system as we work toward addressing our auto insurance crisis. The bill, which is designed to reduce excessive litigation costs by ensuring that damages paid in a trial are limited to the amount the injured party actually paid in medical expenses, is one of several bills we need to pass this session to make an impact on our state's unaffordable auto insurance rates. The passage of this bill and of HB 337, Rep. McFarland's direct action bill, shows we are on the right path, but we still have a long way to go. If we want to see change in our auto market, we need to reform our legal system. I urge Governor Landry to support the entire package of auto insurance reform bills by signing HB 423 and HB 337 and by supporting the passage of Rep. Chenevert’s third-party litigation funding transparency bill, HB 336, and Rep. Melerine’s bill on the Housley presumption, HB 24.

On Louisiana Citizens Legislation, SB 113:

I support Sen. Talbot's SB 113 as amended to include premium relief for Louisiana Citizens' policyholders. The bill reduces potential penalties for Citizens, which brings Louisiana’s market of last resort more in line with the markets of last resort in other coastal states. Citizens is not like other insurers. While bad faith penalties may encourage profit-driven insurers to act in good faith, Citizens is not a for-profit insurer. Because Citizens is ultimately backstopped by all Louisiana policyholders, burdening Citizens with excessive penalties means we all pay the price if Citizens fails. The amendment to remove the additional 10% premium on Citizens' coastal policyholders, as well as removing 5% of it for everyone else, for three years will provide much-needed financial relief to over 100,000 Louisiana homeowners and allow time for the property reform measures that have been passed to take effect. I urge the legislature to pass Sen. Talbot’s SB 113 and ask for Governor Landry to support and sign it as we work to address our state’s property insurance crisis.


About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1-800-259-5300 or visiting