2025 Louisiana Legislative Update: Insurance & Tort Reform
As a follow-up to the tort reform efforts from the 2024 Legislative Sessions, the Legislature returned to the Capital this year for a fiscal session with a slate of insurance and tort reform measures. Unlike the previous session, almost all tort reform measures passed and became law. The following are some of the key Acts that came out of this year’s Session.
- Comparative Fault Amended: Act 15 (HB 431) – Effective January 1, 2026 (As this would be considered a substantive change in the law, it would apply prospectively only) – Under the new law, a finding of 51%+ fault on the part of the plaintiff equals a complete bar to recovery. The Act requires, however, that the jury be instructed that finding of 51% fault on the part of the plaintiff will result in no recovery.
- No Pay – No Play is Now $100,000: Act 16 (HB 434) – Effective 8/1/25 (As this would be considered a substantive change in the law, it would apply prospectively only) – The first $100,000.00 of bodily injury and property damage are barred if the plaintiff has no car insurance.
- Only Past Medicals Actually Paid Are Recoverable: Act 466 (SB 231) – Effective January 1, 2026 (Prospective application only) – The Act amends the “collateral source” statute (La. R.S. 9:2800.27) to delete “cost of procurement” and the “40%” rule. Plaintiff’s recovery for past medical expenses is limited to recovery of amount actually paid by health insurer, Medicare or Medicaid, plus any cost-sharing costs (e.g., deductibles, co-pays, out-of-pocket). However, the law requires that the jury be shown both amounts billed and amounts paid. If the medical expenses are not paid by insurer/Medicare/Medicaid, the recovery is for amounts paid and amounts remaining unpaid (if the unpaid amount is recoverable via privilege or through attorney guarantee). The law also codifies Hoffman v. 21st Century North America Ins. Co., 2014-2279 (La. 10/2/15), 209 So.3d 702 (attorney negotiated discounts not a collateral source). Future medicals were not addressed.
- New Limitations on Recovery by Unauthorized Aliens: Act 17 (HB 436) – Effective 8/1/25 (Prospective application only) – creates NEW La. C.C. Art. 2315.12 – New Civil Code Article operates to bar recovery of general damages and past/future lost wages by “unauthorized aliens” as defined. These prohibitions do not apply to UM/UIM claims where the unauthorized alien is a named insured.
- Housely Presumption “Never-More”: Act 18 (HB 450) – Effective 5/28/25 – (Prospective Application Only) – The Act creates NEW La. C.E. Art. 306.1, which restricts application of Housley presumption to workers’ compensation cases. The Housley presumption basically shifted the burden of proof of causation to the defendant where the plaintiff was in “good health” prior to the accident/incident and developed symptoms/complaints immediately or soon after the accident/incident (and those symptoms continued).
- New Limitations on Public Adjusters: Act 144 (HB 121) – Effective 8/1/25 (Prospective application only) – Amends La. R.S. 22:1706 and 37:2159.1 to impose restrictions on activities (including advertising) by public adjusters. Under the legislation, public adjusters cannot perform contracting work (general or sub) for a property in connection with an insurance claim they have processed. They also cannot advertise/solicit as an “insurance specialist” or as providing any insurance claim or policy interpretations related to service to an insured.
