Prohibits insurance contracts from depriving courts of this state or venue of action against insurer. (8/1/20)
Impact
The enactment of SB 156 would significantly affect the landscape of insurance law in Louisiana. By preventing insurers from limiting the jurisdiction or venue within their contracts, the bill seeks to enhance legal recourse for policyholders. It supports the notion that disputes should be settled in the state where the insured parties reside, thereby promoting fairness in legal proceedings related to insurance claims.
Summary
Senate Bill 156, proposed by Senator Luneau, aims to amend and reenact certain provisions of Louisiana law regarding insurance contracts. The bill specifically prohibits insurance contracts from including conditions that would deprive Louisiana courts of jurisdiction or venue for actions against insurers. This is designed to ensure that residents can pursue legal claims within their home state rather than being forced into potentially unfavorable jurisdictions.
Sentiment
The sentiment surrounding SB 156 seems overwhelmingly positive as indicated by its final passage with a unanimous vote of 95-0 in the House. Lawmakers likely viewed this legislation as a necessary protection for consumers against restrictive practices by insurance companies, reflecting a general consensus on the importance of accessibility to the judicial system for policyholders. However, some insurance industry representatives may view this as a limitation on their contractual rights.
Contention
Despite the positive reception, one notable point of contention may revolve around the implications for insurers who will now have less flexibility to govern the contractual conditions around jurisdiction and venue selection. While advocates for consumers applaud this move, some critics from the insurance sector may argue that it could lead to increased litigation in Louisiana courts and potentially higher costs for both insurers and consumers as a result of more contentious legal environments.
Provides the option of a right of direct action against the insurer alone when the insured is a small business employing fifty or fewer full-time employees. (8/1/18)