HB 604 is a complicated, expensive cure that's worse than the disease
HB 604 by Representative Ray Garofalo requires the Louisiana Department of Insurance to establish and maintain a registry of umpires for property insurance claims, which would create an extraordinarily complex and difficult process that costs storm victims more money and makes it harder for them to rebuild their lives.
There are legitimate concerns regarding qualifications and availability with appraisers and umpires. Unfortunately, HB 604 is a cure worse than the original disease. This bill permits insurance companies to force policyholders into complicated binding agreements that policyholders must navigate on their own or spend money they do not have to enlist the services of an attorney.
HB 604 also creates conditions that are highly susceptible to corruption. Consumers could be significantly disadvantaged by allowing an elected official, like the Insurance Commissioner, who receives contributions from the insurance industry, to establish and maintain a registry of umpires who will issue binding decisions on disputed claims in which insurance companies have a financial interest.
“HB 604 exacerbates the problem it seeks to solve,” said Ben Riggs, executive director of Real Reform Louisiana. “It binds policyholder’s hands with mounds of red tape, forcing them to navigate a difficult and expensive process resulting in a binding decision issued by an umpire appointed by the Insurance Commissioner. Louisiana needs real insurance reforms that benefit consumers by strengthening policyholders’ rights, lowering costs, improving transparency, and making it easier for homeowners and small businesses to resolve their property claims."
