Louisiana Changed Its Direct Action Law: Can You Still Sue an Insurance Company After an Accident?

In many circumstances, an injured person could sue the responsible party’s liability insurance company directly.

Louisiana substantially changed that rule in 2024.

Act No. 275 amended Louisiana Revised Statute 22:1269 and became effective August 1, 2024.

Under current law, an injured person generally does not have an unrestricted right to bring a direct action against the at-fault party’s liability insurer.

Instead, a direct action is permitted when one of the circumstances specified by the statute applies.

This can affect car accidents, commercial-truck cases, premises claims, business liability cases, and other Louisiana personal injury litigation.

What Is a Direct Action?

Suppose a commercial truck causes an accident.

There may be:

The truck driver

The trucking company

and

The trucking company’s liability insurer.

Historically, Louisiana law broadly allowed an injured claimant to name the insurer directly in many lawsuits.

The 2024 legislation significantly narrowed when that can occur.

What Does the Current Louisiana Law Say?

Louisiana Revised Statute 22:1269 now generally provides that an injured person—or qualifying survivors when the injured person dies—has no right of direct action against the liability insurer unless at least one of the circumstances listed in the statute applies.

When Can an Insurer Still Be Sued Directly?

The statute includes circumstances involving:

• bankruptcy of the insured;
• insolvency of the insured;
• specified unsuccessful service or failure-to-defend circumstances;
• certain claims involving children and parents or married persons;
• uninsured-motorist carriers;
• death of the insured; and
• specified insurance-coverage disputes.

Whether one of these circumstances applies must be determined from the actual case.

What About My Own Uninsured Motorist Insurance?

The statute expressly identifies an uninsured-motorist carrier as one circumstance in which direct action remains available.

UM coverage can become important when the at-fault driver:

• has no insurance;
• does not have enough insurance; or
• falls within another covered situation under the policy and applicable law.

The policy must be reviewed.

What If the At-Fault Driver Died?

The current statute includes death of the insured as one of the circumstances permitting direct action.

Again, the procedural details matter.

What If the Insurance Company Denies Coverage?

The statute contains provisions addressing situations in which an insurer defends under a reservation of rights or denies coverage.

In those circumstances, direct action may be available for the purpose specified by the law concerning establishment of coverage.

Does This Mean Insurance No Longer Matters?

Absolutely not.

The change concerns how and when the insurer can be named directly as a defendant.

Insurance coverage can still be one of the most important practical issues in a personal injury claim.

After a catastrophic 18-wheeler accident, for example, attorneys may need to determine:

• primary commercial coverage;
• excess coverage;
• umbrella policies;
• self-insurance;
• policies belonging to additional defendants; and
• uninsured/underinsured motorist coverage.

What If Several Companies Are Responsible?

A serious trucking case may involve:

• driver;
• motor carrier;
• employer;
• tractor owner;
• trailer owner;
• maintenance company;
• cargo-loading company; or
• another responsible business.

Each entity may present separate liability and insurance questions.

Will the Jury Be Told How Much Insurance Exists?

Louisiana law places restrictions on disclosure of liability insurance to jurors.

The purpose of the trial is to determine liability and damages according to the evidence—not to simply tell jurors the size of an insurance policy and ask them to award it.

Why Does This Matter for Truck Accidents?

Commercial trucking cases frequently involve significant insurance questions.

Federal law establishes minimum financial-responsibility requirements for certain interstate motor carriers.

But minimum federal requirements do not necessarily tell you:

• the actual policy limit;
• whether excess insurance exists;
• whether another company has separate coverage;
• whether a coverage dispute exists; or
• which policy applies to the particular collision.

Insurance investigation remains important even though Louisiana narrowed direct actions.

What If the Insurance Adjuster Contacts Me?

Remember who the adjuster represents.

The liability adjuster works for the insurer handling the claim.

An adjuster may request:

• a recorded statement;
• medical information;
• authorization forms;
• photographs; or
• settlement documents.

Do not provide information you know is false, but do not guess about facts you cannot remember either.

Read documents carefully before signing them.

Does an Insurance Company’s Settlement Offer Determine What My Case Is Worth?

No.

An offer is a negotiation position.

The full evaluation of a serious injury claim may include:

• liability evidence;
• comparative fault;
• medical expenses;
• future medical treatment;
• lost wages;
• earning capacity;
• permanent impairment;
• non-economic damages; and
• applicable insurance.

What Happens If a Settlement Is Reached?

Current R.S. 22:1269 contains procedural provisions concerning the insurer’s role when a judgment is entered or a settlement is reached during pending litigation.

The exact procedure should be handled according to the statute and circumstances of the case.

Why the 2024 Change Matters

Louisiana did not eliminate liability insurance.

It changed the procedural ability to sue a liability insurer directly.

For injured people, that distinction matters.

The legal claim may primarily proceed against the allegedly responsible insured defendant even though an insurer is defending the case or ultimately responsible for covered amounts within the policy.

Talk to Jacqueline Scott & Associates

Louisiana insurance law has changed.

Do not rely on an old article that says you can always name the liability insurance company directly in a Louisiana accident lawsuit.

If you were injured in Shreveport, Bossier City, Caddo Parish, Bossier Parish, or elsewhere in Louisiana, Jacqueline Scott & Associates can evaluate the responsible defendants, applicable insurance, and current Louisiana law.

Call (318) 746-5997.

Make ’Em Pay.

Every case is different. Insurance coverage, direct-action rights, liability, and procedural requirements depend on the facts, policy, and applicable law. Prior results do not guarantee a similar outcome. This article provides general educational information and is not legal advice.

This article is general information about Louisiana law and is not legal advice. Laws and deadlines can change, and every case depends on its own facts. Past results do not guarantee or predict future outcomes. Reading this page or contacting the firm does not by itself create an attorney-client relationship.