LOU LEG Direct Action Against Insurer


On May 15, LOU LEG bill permitted direct action against insurer.


  • LOU LEG proposed Bill HB 337 to provide that in direct action cases, action is filed against insured first, may be filed against insurer under limited circumstances.
  • Amended, reenacted LOU INS 22:1269(B)(1) and (D); enacted LOU INS 22:1269(B)(3) and (4), (E), 3 and (F); Repealed section in code of evidence, LOU LEG 411(D).
  • Bill Provisions
  • Proposed law amended present law to provide that injured person or, if deceased, persons listed in present law, have no right to file a survival or wrongful death claim.
  • As direct action against insurer, except in cases of insured bankruptcy/insolvency.
  • Or in when unsuccessful attempt made to serve citation; when cause of action is for damages are result of offense in child/parent relationship or between married persons.
  • When insured is deceased; or if insurer is uninsured motorist carrier, is defending suit under reservation of rights, or denies coverage for purpose of establishing coverage.
  • Prohibited court from disclosing existence of insurance coverage to jury unless required in present and proposed law; authorized insurer to be joined to an action.
  • By motion of any party for purposes of entering final judgment/enforcing settlement.
  • Provided for insurers' reservation of rights and related notice requirements.
  • Further provides for responsive pleadings and the joining of insurers post verdict.
  • Does not prevent plaintiff from resolving claim of coverage against one insurer while preserving claim against another insurer of same defendant in cause of action.
  • Legislative History
  • On Mar. 11, 2024, bill was introduced in House; on Mar. 27, 2024, bill passed House.
  • On Apr. 2, 2024, bill was introduced in Senate; on May 7, 2024, bill passed Senate.
  • On May 13, 2024, bill was enrolled; on May 14, 2024, bill was sent to Governor.
  • Effectiveness
  • If enacted, LOU LEG Bill HB 337 becomes effective Aug. 1, 2024.
  • May 23, 2024 LOU LEG Governor Approval
  • On May 23, 2024, LOU LEG governor approved bill HB 337 and assigned Act 275.
  • Document dated May 23, received from LOU LEG May 31, summarized on Jun. 1.

Regulators LOU LEG
Entity Types Ins
Reference Act 275, 5/23/2024; PR, HB337, 5/14/2024; Citation: LOU INS 22:1269; LOU LEG 411(D);
Functions Claims/Accelerated Benefits; Compliance; Financial; Legal; Resolution
Countries United States of America
Category
State
Products Insurance; Insurance-Casualty; Insurance-Life; Insurance-Property
Regions Am
Rule Type Final
Rule Date 5/14/2024
Effective Date 8/1/2024
Rule Id 212110
Linked to N/A
Reg. Last Update 5/23/2024
Report Section US Consumer

Last substantive update on 06/05/2024