House Bill No. 510, introduced by Representative Glorioso, aims to establish regulations regarding mandatory binding arbitration in property insurance policies in Louisiana. The bill enacts R.S. 22:1892.2, which stipulates that insurers cannot require policyholders to participate in mandatory binding arbitration unless specific conditions are met. These conditions include the requirement for arbitration to be included in a separate endorsement attached to the policy, the provision of a premium discount for accepting arbitration, and the policyholder's signed acknowledgment of rights forfeited in exchange for the discount. Additionally, the bill mandates that arbitration must occur within the judicial district of the insured's premises and that the selected arbitrator must be a licensed attorney in Louisiana.

The bill also outlines that the arbitration process must comply with existing mediation provisions and allows insurers to specify that arbitration replaces the appraisal process. Furthermore, it grants arbitrators the authority to issue judgments that may include penalties and attorney fees. Notably, the bill does not apply to surplus lines insurers, ensuring that their use of mandatory arbitration provisions remains unaffected. The House Committee on Insurance made amendments to clarify these points and ensure that specific information is included in the policyholder's acknowledgment form.