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 acceptance of arbitration, which must inform them of the rights they forfeit, such as the right to a jury trial. Additionally, the insurer must offer a policy that does not mandate arbitration.

The bill also outlines procedural requirements for arbitration, including that it must occur within the judicial district of the insured's premises and that the selected arbitrator must be a licensed attorney in Louisiana who meets the minimum qualifications set by the commissioner. The arbitrator is empowered to issue judgments that may include penalties and attorney fees. Furthermore, the arbitration process will be governed by the Louisiana Binding Arbitration Law, and the bill explicitly states that it does not apply to surplus lines insurers, allowing them to continue using mandatory arbitration provisions without restriction.