On Wednesday, May 28, 2025, Governor Jeff Landry signed several pieces of landmark legislation into law that are poised to significantly impact Louisiana’s insurance industry and insurance-related litigation. This legislative package is aimed at lowering insurance premiums and reducing frivolous lawsuits.
This latest round of tort reform brings sweeping changes to Louisiana’s civil liability and insurance framework. These changes include a modified comparative fault system, repeal of the long-standing and plaintiff-friendly Housley presumption, and additional measures that empower the Louisiana Insurance Commissioner to reject excessive insurance rate increases. These new laws are expected to impact insurance defense and litigation, personal injury lawsuits, and liability exposure across Louisiana.
Here, we will discuss details of these reforms and developments that will impact businesses, insurers, and their legal counsel.
Comparative Fault System Overhaul
Over the last several decades, Louisiana’s fault regime has changed from contributory negligence to the current pure comparative fault system. Under current law, the fault of every actor who contributed to the alleged injury is allocated a certain percentage of fault by the jury. Louisiana has again significantly changed course to a modified comparative fault system. Currently, Louisiana Civil Code Article 2323 provides that a plaintiff found to have suffered injury, death, or loss partially due to his own negligence would see his recoverable damages reduced in proportion to the “degree or percentage of negligence attributable” to the plaintiff.
Effective January 1, 2026, Louisiana Civil Code Article 2323, as amended by House Bill 431, will provide that a plaintiff found to be at least 51% responsible for his own injury will not be entitled to recovery of any related damages whatsoever. If a plaintiff is found to be less than 51% responsible for his injuries, then his recoverable damages will be reduced in proportion “to the degree or percentage of negligence attributable” to him, as was the case under current law.
The Legislature also added a new section to Article 2323, mandating “[i]n cases where the issue of comparative fault is submitted to the jury, the jury shall be instructed on the effect of this Article.” Practically, this means juries tasked with assigning percentages of fault to each party will receive instruction outlining the new ramifications of Civil Code Article 2323.
House Bill 431 does not indicate whether these new changes will apply retroactively or prospectively only. Like the recent wave of litigation following the changes to Louisiana’s Direct-Action Statue, the applicability of retroactivity will likely be heavily litigated in the courts.
Housley Presumption Overruled
For over thirty years, Louisiana jurisprudence has developed a liberal evidentiary presumption highly favoring plaintiffs, known as the Housley presumption. Under the Housley presumption, the judge would instruct the jury that medical causation of a plaintiff’s personal injury was presumed when the plaintiff could show: (1) that he was in good health prior to the accident; (2) that symptoms of the alleged injury appeared after the accident and continuously manifested themselves thereafter; and (3) that there is a reasonable possibility of causation between the accident and the claimed injury as established by medical evidence, circumstantial evidence, or common knowledge. Housley v. Cerise, 579 So.2d 973 (La. 1991).
Under House Bill 450, the Louisiana Legislature has overruled the Housley presumption. Newly enacted Code of Evidence Article 306.1, which provides, with some exceptions, that “the lack of a prior history of an illness, injury, or condition shall not create a presumption that an illness, injury, or condition was caused by the act that is the subject of the claim.” House Bill 450 further provides that Article 306.1 is to have “prospective application only” and, therefore, will apply only to causes of action arising after May 28, 2025. Thus, the updated provisions of Article 306.1 will not be applied to existing matters.
Going forward, we expect that Article 306.1 will force a plaintiff to present affirmative medical evidence to establish causation. Under the Housley presumption, a plaintiff who experienced a sudden onset of back pain after an accident, and who had no prior history of back problems, could rely on the presumption to establish that the accident caused their back injury. Under Article 306.1, the same plaintiff will need to present affirmative medical evidence that directly links the accident to their back pain, such as testimony from an expert medical witness, introducing diagnostic test results and scans, and relying on post-accident medical records documenting the progression of symptoms. The existence of pre-existing injuries is also likely to become more important in building a defense in these cases.
Louisiana’s “No Pay, No Play” Increase
Louisiana’s “No Pay, No Play” statute (Louisiana Revised Statute 32:866) has been amended by House Bill 434 to increase the penalties for driving without car insurance. In an attempt to induce Louisiana drivers to obtain automotive liability insurance and discourage personal injury suits by uninsured drivers, injured drivers who do not maintain minimum automotive insurance limits are barred from recovering up to the first $100,000 in bodily injury damages or $100,000 in property damage in a civil suit. The amendments are effective August 1, 2025. However, as with the changes to Louisiana’s comparative fault system, the language of House Bill 434 does not identify whether the statute has prospective or retroactive application.
Insurance Commissioner’s New Veto Authority
House Bill 148 grants new authority to Louisiana’s elected Insurance Commissioner to reject proposed rates set by insurance companies the Commissioner deems “excessive.” The newly enacted legislation defines an “excessive” rate as one that is “likely to produce a profit that is unreasonable high for the insurance provided or the expense provision included therein is unreasonably high in relation to the services rendered.” While the aim of House Bill 148 is to lower rates and bring Louisiana in line with several other Gulf South states having similar laws, critics claim the Insurance Commissioner’s new power may discourage insurance companies from doing business in Louisiana.
Prohibition of Certain Damages for Unauthorized Residents
House Bill 436 created a new provision in Louisiana’s Civil Code, Article 2315.12, to preclude an “unauthorized alien” from recovering general damages for pain and suffering as well as loss of income damages arising from an accident. The bill defines an “unauthorized alien” as one who is unlawfully present in the United States according to federal immigration laws. However, an “alien” can still recover medical expenses and make a claim against an uninsured or underinsured motorist policy which names the “alien” as an insured.
New Rate Discount for Dash Camera in Commercial Vehicles
House Bill 549 requires insurers to provide commercial trucking companies with a discount for installing and maintaining dashboard cameras and telematics systems, if certain additional criteria are met. To qualify, the camera and telematics system must meet all of the following: (1) be installed and operational at the time of policy issuance or renewal; (2) comply with certain technical standards as prescribed by the Commissioner of Insurance; and (3) remain in continuous use during the policy term, subject to verification by the insurer. Policyholders may also be required to provide proof of installation and usage—such as a certificate from a licensed vendor or a telematics data report—upon the insurer’s request.
The goal of this legislation is to enhance public safety, combat insurance fraud, and help reduce claims costs through the adoption of these technologies. It’s important to note that the discount applies only to liability coverage and does not include comprehensive or collision insurance unless the insurer states otherwise.
Galloway Looks Ahead
Together, these legislative changes mark consequential shifts in Louisiana’s tort and insurance landscape. Whether these new laws will deliver on their expected effects or create new challenges for businesses remains to be seen. It is clear, however, that decision makers and stakeholders should prepare for these changes to take effect with possible ramifications around retroactivity and application.
Galloway Johnson Tompkins Burr & Smith attorneys in New Orleans, Mandeville, and Lafayette are closely monitoring the implementation and interpretation of these changes. Our team is ready to help clients navigate compliance, risk strategies, and response to legal developments in Louisiana.
Disclaimer: This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between Galloway and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material. This material may be considered attorney advertising in some jurisdictions.
