Provides for right of direct action against an insurer alone. (8/1/14)
The enactment of SB 156 removes previous restrictions that limited the ability to pursue direct action against an insurer in only certain defined circumstances (such as bankruptcy or death of the insured). This shift broadens the avenues available to injured parties to seek recompense from insurers, thereby potentially increasing the number of claims filed directly against insurance companies. It simplifies the process for plaintiffs who otherwise faced significant hurdles when the insured was not viable as a defendant.
Senate Bill 156, introduced by Senator Murray, amends Louisiana law governing the right for injured persons to take direct action against insurers. This bill allows individuals or their heirs who have suffered an injury to file a claim directly against the insurer alone, without the necessity of including the insured party in the lawsuit. The goal of this amendment is to streamline the legal process for claimants, especially in scenarios where the insured party is unresponsive or unable to be sued, such as in cases of bankruptcy or insolvency.
The sentiment surrounding SB 156 appears to reflect significant support from consumer protection advocates who argue that this will empower individuals to seek justice and compensation without unnecessary barriers. However, concerns have been raised among some insurance companies about the rate of claims that could arise from this change, which they argue could lead to increased liability and potentially higher premiums for policyholders. Overall, the public response seems to lean towards favoring the accessibility of legal recourse for accident victims.
Notable points of contention include discussions regarding the balance of power between insurance companies and claimants. Critics of the bill may fear that it could lead to an uptick in frivolous lawsuits against insurers, while proponents assert that it provides necessary rights to individuals who are currently at a disadvantage. The elimination of restrictions may also prompt a reevaluation of insurance practices and policies as they pertain to personal injury claims, indicating a shift in legal accountability and consumer protection within the insurance industry.