BusinessReport.com

Posted on November 9 at 12:05 p.m.

Amazing how everyone wonders why it seems that more suits are filed in Louisiana but no one seems to notice that Louisiana law requires lawsuits to be filed within one year (often before all the medical treatment is completed) while most other states allow up to two years for claims to be resolved by settlement before suit must be filed. Why do the insurers insist on keeping one year limits in Louisiana? Because a significant number of people do not pursue their claims timely, allowing the insurers to close their files without having to pay claims. Texas has had minimum vehicle liability coverage requirements of $20,000 for years while Louisiana maintains only $10,000 minimum liability coverage, yet a relative of mine incurred increased rates when moving to Louisiana from Texas. Texas allows two years for suits to be settled or suit filed. I wonder if that makes a difference. Same issue in medical malpractice. Two years versus one year. Another thing: insurance companies should be required to make simplified annual reports and the insurance commissioner should be required to make those reports accessible on the web for public viewing. And the reports should, as a minimum, report the annual earned premiums and claims closed with payment, separate from the "losses incurred" which is a mere semantical term for "reserves".

On See you in court