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Committee backs bill barring general damages and past/future wages for unauthorized aliens in auto suits
Summary
House Bill 436 was reported favorably by the Senate committee after debate over whether prohibiting certain damages for unauthorized aliens will reduce insurance costs and whether insurers should be allowed to sell coverage to those individuals.
House Bill 436, introduced and presented to the committee by Chairman Furman, would prohibit awarding general damages and past and future wages to unauthorized aliens in actions for damages arising from automobile accidents. The Senate Committee on Judiciary A discussed the measure on May 13, 2025 and reported it favorably.
Chairman Furman said the bill’s purpose is to help address the state’s auto insurance market and to encourage legal immigration. The sponsor told senators the bill would not prevent property-damage recovery or payment of medical expenses; it would remove general damages and past and future wages from recoverable elements for unauthorized aliens.
Senator Jenkins asked whether insurers are prohibited from selling insurance to unauthorized aliens; the sponsor said nothing in the bill prevents insurers from selling first-party coverage or paying a first-party claim. Senator Lugano and others expressed concern that allowing insurers to sell policies but denying certain recovery in court could create an unfair situation in which insurers profit from coverage that cannot be enforced fully in tort litigation.
Senator Luno questioned the measure’s impact on uninsured and low-income residents compared with unauthorized aliens. The record includes exchange about broader cost drivers in the Louisiana insurance market and references to industry statistics on loss-adjustment expenses.
Adam Patrick of the Department of Insurance explained that “loss adjustment expenses” includes legal fees, claims personnel salaries, independent medical examinations and other costs insurers incur when handling claims; senators cited national data showing Louisiana’s loss-adjustment expenses are high compared with other states.
The committee voted to report HB 436 favorably. The roll call recorded: Senator Luno — no; Senator Carter — no; Senator Edmonds — yes; Senator Mazzell — yes; Senator Jenkins — no; Senator Seba — yes; Chair — yes. The bill advances with unresolved policy questions about whether denying certain damages to unauthorized aliens will reduce premiums and how first-party insurance sales to those individuals should be treated in practice.
The committee’s public record included 42 green cards in support (not wishing to speak) and 24 cards in opposition (not wishing to speak). Sponsors indicated willingness to consider clarifying amendments, and members noted the proposal raises broader issues about insurance markets and liability allocation that may be addressed in subsequent bills or amendments.
