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If you've been injured in an accident in Louisiana and are preparing for a personal injury claim or lawsuit, you might be surprised to learn that the insurance company can't be mentioned during your trial. This seems counterintuitive, but Louisiana's Direct Action Statute, which was significantly revised in 2024, now prohibits mentioning insurance in front of the jury in most cases.
At John Michael Morrow Law Firm, we help clients understand these complex rules and what they mean for pursuing compensation after an accident.
Understanding Louisiana's Direct Action Statute
For decades, Louisiana was unique among states in allowing injured people to sue insurance companies directly. The Direct Action Statute gave plaintiffs the right to name the at-fault party's insurer as a defendant in the lawsuit. This meant juries knew from the start that an insurance company would likely pay any damages awarded.
However, Act No. 275, signed by Governor Jeff Landry and effective August 1, 2024, dramatically changed this landscape. The revised law eliminates the automatic right to sue an insurance company directly in most situations. Now, injured plaintiffs typically must sue only the individual or business that caused the harm, not their insurer.
When Insurance Companies Can Still Be Named
The new law doesn't completely eliminate direct actions against insurers, but it limits them to seven specific circumstances.
These are:
Bankruptcy – The insured person has filed for bankruptcy or bankruptcy proceedings have been started against them.
Insolvency – The insured is insolvent, meaning their debts exceed their assets and they cannot pay a judgment.
Service Issues – You can't serve the at-fault party with legal papers despite reasonable attempts, or they refuse to answer or defend the lawsuit within 180 days.
Family Claims – The claim involves injuries between spouses or between parents and children.
Death of Insured – The insured person has died.
Uninsured Motorist Coverage – The insurer is an uninsured motorist carrier.
Coverage Disputes – The insurance company is defending under a reservation of rights or has denied coverage (but only for establishing that coverage exists).
These exceptions cover many serious accident cases, but the key change is that injured plaintiffs no longer have an automatic right to name the insurance company as a defendant simply because the insured person caused harm.
The Jury Can't Know About Insurance
Perhaps the most significant practical change involves what juries can hear during trial. Under the new law, the insurance company's name cannot appear in the case caption. Instead, the case is captioned only against the insured defendant.
The court is also prohibited from disclosing the existence of insurance coverage to the jury unless specifically required by Louisiana's Code of Evidence. The law repealed a previous provision that required judges to instruct juries that insurance coverage existed for the damages claimed.
This change aims to prevent juries from awarding higher damages simply because they know an insurance company will pay. Opponents counter that keeping this information from juries is misleading, since insurance is the practical reality in almost every personal injury case.
How This Affects Your Case Strategy
The prohibition on mentioning insurance doesn't change the fundamental strength of your injury claim, but it does affect how cases are presented at trial. Your attorney must focus the jury's attention on the defendant's actions and how those actions caused your injuries.
This means building a case that stands on its own merits: clear evidence of fault, thorough documentation of injuries, and compelling testimony about how the accident has impacted your life. The jury must understand the full extent of your damages based purely on the facts and evidence.
For our clients, this makes comprehensive case preparation even more critical. We work with medical experts who can explain your injuries and treatment needs in ways that resonate with jurors. We gather economic evidence showing the financial impact of your injuries. We preserve accident scene evidence and witness testimony that clearly establishes fault.
Insurance Companies Must Follow New Notice Requirements
While the direct action changes favor insurance companies in some ways, the revised law also imposes new obligations on insurers. If an insurance company denies coverage or defends a case under a reservation of rights, it must follow strict notice requirements.
These include:
Notice to Insured – The insurer must send written notice of reservation of rights within 90 days of determining a coverage defense exists, but no later than 30 days before trial.
Delivery Method – Notice must be delivered by U.S. Postal Service with proof of mailing, registered or certified mail, or by commercial courier or hand delivery.
Notice to Attorneys – The insurer must notify all attorneys of record that a reservation of rights has been issued within 60 days of sending the initial notice, but no later than 30 days before trial.
These notice requirements ensure that everyone involved in the case knows about potential coverage disputes before trial. If an insurer fails to follow these requirements, it may lose the ability to deny coverage later.
Joining the Insurer After a Verdict
Even though insurance companies typically can't be named as defendants at the start of a lawsuit under the new rules, they can be joined after a verdict is reached. This allows plaintiffs to enforce a judgment based on the insurer's policy coverage.
After you win your case and receive a verdict, your attorney can add the insurance company for the purpose of collecting the judgment within the policy limits. This ensures you can actually recover the compensation the jury awarded. The law also allows you to settle with one insurance company while continuing to pursue claims against other insurers covering the same defendant.
What Hasn't Changed
Despite these significant revisions to Louisiana's Direct Action Statute, several fundamental aspects of personal injury law remain the same. You still have the right to pursue compensation for injuries caused by someone else's negligence. Insurance companies still have a duty to defend their insureds and to pay valid claims within policy limits.
The statute of limitations hasn't changed—you still have two years from the date of your accident to file a personal injury lawsuit in most cases. Your right to recover compensation for medical expenses, lost wages, pain and suffering, and other damages remains intact. What's changed is primarily procedural: how insurance companies are named in lawsuits and what juries can hear about insurance coverage during trial.
Why Legal Experience Matters More Than Ever
The changes to Louisiana's Direct Action Statute make experienced legal representation more valuable than ever for injury victims. Building a strong case that can win fair compensation without mentioning insurance requires sophisticated legal strategy, thorough preparation, and deep knowledge of Louisiana law.
At John Michael Morrow Law Firm, we've spent over two decades fighting for injured families across Louisiana. We understand how to build compelling cases that succeed under these new rules. We know how to present evidence that resonates with juries and how to work with experts who can clearly explain the full impact of your injuries.
The insurance reforms don't change our commitment to pursuing justice for our clients. They simply require us to be even more thorough and strategic in how we build and present your case.
If you've been injured in an accident and have questions about Louisiana's direct action law or how recent insurance reforms affect your case, call us at (337) 329-8350 or reach out online to schedule a free consultation.