Effort To Extend Time To Sue Insurance Companies For Bad Faith Sidelined By House Panel

A Louisiana House committee narrowly defeated Monday legislation that opponents called the Texas Brine Bail Out Act. State Rep. Walt Leger III, D-New Orleans, said his legislation intended to sort out a conflict in existing law that limits a person denied insurance coverage for a claim from filing a lawsuit to enforce the policy. Some Louisiana courts find that a denied person must sue the insurer within 12 months of a bad faith denial. Other courts say the deadline is 10 years. “It concerns me that we would slant our laws in favor of an insurer” over Louisiana citizens and businesses, Leger said.