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Jury hears update on House Bill 561; public bodies exempted from surplus-line arbitration language
Summary
Legal counsel told the jury that amendments to House Bill 561 exclude public bodies from provisions that would allow surplus-line insurers to require out-of-state arbitration, protecting local government litigation rights for now.
Attorney briefing the jury summarized House Bill 561 and explained how proposed language on surplus-line policies could have shifted disputes to out-of-state arbitration forums. He said that, following committee hearings and negotiated amendments, the bill now excludes public bodies — including police juries and school boards — from the surplus-line arbitration provision, which preserves local courts and Louisiana law as venues for public‑body disputes.
The presenter urged municipal entities to review their insurance policies and avoid surplus-line coverage where possible because surplus-line policies can limit state-law protections. Several jurors thanked staff for travel to Baton Rouge and for negotiating the amendment that they said protects public bodies’ litigation positions.
Next steps: Jurors were advised to review policies with local agents and consider contract language that preserves Louisiana venue and law for future coverage.
