Insurance Bills Sent to Louisiana Governor

Of the insurance-related bills sent to Louisiana Gov. Bobby Jindal for his signature following the close of the 2008 legislative session, one would require drivers to carry higher minimum liability limits on their vehicles, another limits liability for farmers involved in “agritourism,” and a third allows for “named storm” deductibles for properties in the southern regions of Louisiana.

Under HB 1312, by Rep. Erich Ponti, R-Baton Rouge, the minimum liability amount required for Louisiana motorists would go up from “10-20-10” coverage ($10,000 for damage of other people’s property, $20,000 for injury or death to more than one person in an accident and $10,000 for injury or death to one person) to “15-30-25” on Jan. 1, 2010. At press time, Jindal had not indicated whether he would sign the bill.

Agriculture and Forestry Commissioner Mike Strain, D.V.M. had a good experience during his first legislative session. Lawmakers passed 23 of the bills his department supported. Among them was HB 633, sponsored by Rep. John F. “Andy” Anders, which limits liability for farmers involved in agritourism.

“It’s an important issue,” Strain said. “To make ends meet, more and more farmers are opening their land to the general public for corn maze, pumpkin patch, field tours and other guided activities. High liability insurance costs were reducing opportunities for farmers to turn a profit and stay in business.”

Insurers would be allowed to apply “named storm” deductibles on homeowner policies depending on properties’ distance from the Gulf of Mexico under SB 160 by Sen. Don Cravins Jr., D-Opelousas. The Department of Insurance, which supported the bill, would create a map of Louisiana with zones outlining which areas could have named storm deductibles at which level. The bill puts a 4 percent cap on the deductibles.

Associate Press reports contributed to this story.

Topics Louisiana Agribusiness