Bill > HB379

This bill amends Louisiana insurance law to establish specific requirements for mandatory binding arbitration in property insurance policies. Under the new provisions, insurers can only require mandatory binding arbitration if they meet several conditions: the arbitration requirements must be in a separate policy endorsement, the policyholder receives an actuarially sound premium credit for accepting arbitration, the policyholder explicitly signs a form acknowledging their rights are being limited (with a detailed warning in large, bold font explaining the arbitration process), the endorsement requires the insurer to first attempt mediation, and the insurer must also offer a policy option without mandatory arbitration. The bill mandates that any arbitration must occur in the judicial district where the insured property is located, with the arbitrator being a licensed Louisiana attorney meeting specific qualifications. The arbitrator can award penalties, attorney fees, and other damages, and the arbitration process will be governed by Louisiana's Binding Arbitration Law. The bill does not apply to surplus lines insurers, and it allows the insurance commissioner to create regulations to implement these new requirements.