Claims News Service, Apr. 27, 10:33 a.m. EDT -- The American Insurance Association is opposing recent legislation passed by the Louisiana Senate Insurance Committee, calling it "very destructive" to the state if it becomes law.
"Senate Bill 707 is a very expansive bad faith measure that would allow third party claimants the right to sue insurance carriers," said John Marlow, assistant vice president, AIA Southwest Region. "Only a handful of states allow third-party, bad-faith suits against insurers, all of which have seen a negative impact on insurance liability costs and premiums as a result.
"Third party bad faith doctrines encourage fraud and the filing of marginal and inflated claims. In the context of claims against business defendants, [this] could have a debilitating impact on liability insurance consumers, jobs, and the overall economy," Marlow explained.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
