DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 510 Reengrossed 2024 Regular Session Glorioso
Abstract: Authorizes mandatory binding arbitration with respect to property insurance under
certain circumstances.
Proposed law prohibits an insurer writing property insurance policies from requiring a policyholder
to participate in mandatory binding arbitration unless all of the following apply:
(1)The mandatory binding arbitration requirements are contained in a separate endorsement
attached to the property insurance policy.
(2) The premium charged for the policy includes an actuarially sound credit or premium discount
for the mandatory binding arbitration endorsement.
(3)The policyholder signs a form prescribed by the commissioner electing to accept mandatory
binding arbitration, and such form notifies the policyholder of rights forfeited in exchange
for the credit or premium discount.
(4)The endorsement establishes that an insurer will comply with the mediation provisions in
present law (R.S. 22:2651 et seq.) before the initiation of arbitration.
(5)The insurer offers the policyholder a policy that does not require the policyholder to
participate in mandatory binding arbitration.
Proposed law requires the commissioner to include specific information in the form that a
policyholder may sign to elect acceptance of mandatory binding arbitration.
Proposed law authorizes an insurer to require within an endorsement that the arbitration process is
in lieu of the appraisal process.
Proposed law requires arbitration to take place in the state of La. at a location within the judicial
district in which the insured's premises is located.
Proposed law requires the selected arbitrator to be an attorney licensed to practice in the state of La.
Requires the arbitrator to meet the minimum requirements for insurance arbitrators as prescribed by
the commissioner.
Proposed law authorizes the arbitrator to issue judgments that include an award of penalties, attorney fees, and any other damages allowed by law. Further requires arbitration to be governed by the La.
Binding Arbitration Law in present law (R.S. 9:4201 et seq.).
Proposed law does not apply to surplus lines insurers nor restrict or prohibit the use of mandatory
arbitration provisions by surplus lines insurers.
(Adds R.S. 22:1892.2)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the original bill:
1. Add that proposed law does not apply to surplus lines insurers or otherwise restrict or
prohibit the use of mandatory arbitration provisions by surplus lines insurers.
2. Make technical changes.
The House Floor Amendments to the engrossed bill:
1. Require the commissioner to include certain specific information in the form that a
policyholder may sign to elect acceptance of mandatory binding arbitration.