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Judicial Hellholes list again phony, misleading, harmful to Louisiana

February 2, 2023

A phony list that consistently ranks Louisiana as one the nation’s “Judicial Hellholes” has re-entered the public discourse, and it couldn’t have come at a worse time.

In a recent Letter to the Editor, State Senator Robert Mills references the latest report, arguing that “Louisiana’s civil justice climate impacts the state’s ability to attract and retain business.”

If it were true that the judicial atmosphere in Louisiana discourages businesses from investing in our state, then incredibly profitable oil and gas companies wouldn’t do business here.

The report is put together by corporate lobbyist organization The American Tort Reform Foundation, which is the same organization that promised us our car insurance rates would go down by 25% if we passed tort reform. Instead, our rates are going up.

This is a misleading report based on anecdotal evidence - with no empirical aspect of the study evident - presented by corporate lobbyists. These same lobbyists strategized to tie tort reform to insurance rates, intending to “excite Joe Six-Pack” into supporting policies that actually pad corporate profits.

The timing is profound as our legislators are currently in a special session to fund an incentive program that aims to lure insurance providers to the state. A similar proposal was used after Hurricane Katrina to - at-best - mixed results - with the vast majority of insurers attracted folding or leaving the state.

Some say the definition of insanity is doing the same thing over and over, expecting a different result. Insurance Commissioner Jim Donelon says our only option (outside of going uninsured) is to try this same failed incentive program, again. That’s tough to believe coming from a man who gets most of his campaign funding from insurance companies, agents, and lobbyists.

We need real insurance reform, not more laws written by corporate lobbyists to rig the system for big insurance.

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Insurance Industry: "Credit Scores" Among Reasons for Louisiana's Rising Insurance Costs.

By Ben Riggs • 16 Feb, 2024

Insurance Industry: "Credit Scores" Among Reasons for Louisiana's Rising Insurance Costs. A new report shows that auto insurance rates are skyrocketing, rising by 26% across the U.S. On average, Louisiana drivers pay $2,909 annually, roughly 6.53% of their income for auto insurance. Wayne Watley at Watley Insurance Group lists “credit scores” among the reasons for Louisiana’s rising auto insurance costs, including poor roads and uninsured motorists. Mr. Watley goes on to say, “It’s a challenge because we’re not one of the richest states, but we have some of the highest premiums.” He is correct—and the data backs him up. Insurance companies use credit scores to determine insurance rates for policyholders. Louisiana ranks 48th in median household income and 49th in average credit score . According to a recent study , safe drivers in Louisiana with poor credit pay 111% more than safe drivers with excellent credit ($1,505 / $713). Consequently, Louisiana has the second-highest auto insurance rates in the nation, which leads to more uninsured motorists, another primary cause of higher insurance rates. The use of credit scores in rate setting also creates perverse incentive structures that make Louisiana roads less safe. In Louisiana, safe drivers with poor credit pay an average of $905 more than drivers with a DWI and excellent credit ($3,548 / $2,643). Meanwhile, traffic fatalities increased by 21% from 2019 to 2022 in Louisiana, and the fatality rate per 100 million vehicle miles traveled increased by 18%, according to KPLC . Louisiana desperately needs real insurance reforms that lower costs, protect consumers, hold insurers accountable, and make our roads safer.