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HB 379

INSURANCE/PROPERTY: Provides relative to mandatory binding arbitration with respect to property insurance policies

2025 Regular Session Introduced by Dewith Carrier and 6 co-sponsors

Louisiana bill mandates binding arbitration for property insurance disputes, bypassing courts to resolve claims faster but limiting policyholders' access to litigation and jury trials.

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Bill Summary · HB 379

Legislative bill overview

HB 379 mandates that property insurance policies in Louisiana include binding arbitration clauses to resolve disputes between insurers and policyholders, rather than requiring litigation in court. This streamlines the claims process by establishing arbitration as the default dispute resolution mechanism for covered disagreements.

Why is this important

Property insurance disputes can be costly and time-consuming when litigated in court, potentially delaying claim resolutions for policyholders. Mandatory arbitration could reduce legal expenses and accelerate settlements, though it also limits access to the court system and jury trials—traditionally viewed as consumer protections in insurance disputes.

Potential points of contention

  • Consumer access to courts: Arbitration removes policyholders' right to pursue disputes through the court system and jury trials, which some argue limits remedies and weakens negotiating power against larger insurers
  • Arbitration cost and fairness: Questions about who pays arbitration fees, arbitrator selection processes, and whether arbitration truly favors neither party or leans toward insurance companies with greater repeat-customer relationships
  • Scope limitations: Unclear which specific disputes are covered (coverage denials, claim amounts, bad faith) and whether some claims should remain in court rather than arbitration

Compiled from official sources — confirm details with the bill’s official record.

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