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 engage in mandatory binding arbitration unless specific conditions are met. These conditions include the requirement for arbitration to be detailed in a separate endorsement attached to the policy, the inclusion of an actuarially sound credit or premium discount for the arbitration endorsement, and the policyholder's signed consent to arbitration, which must inform them of the rights they forfeit by opting for arbitration. Additionally, the bill mandates that arbitration must occur within the state and specifies that the selected arbitrator must be a licensed attorney in Louisiana.

The proposed law also outlines that the arbitration process may replace the appraisal process and that the arbitrator has the authority to issue judgments that include penalties and attorney fees. Furthermore, the bill clarifies that it does not apply to surplus lines insurers, allowing them to continue using mandatory arbitration provisions without restriction. The legislation aims to ensure that policyholders are adequately informed of their rights and the implications of choosing arbitration over traditional legal proceedings.