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 an actuarially sound credit or premium discount for the endorsement, and the policyholder's signed acceptance of arbitration after being informed of the rights they forfeit by doing so. Additionally, the insurer must offer a policy that does not mandate arbitration.

The bill also outlines the arbitration process, mandating that it occurs within the state at a location corresponding to the insured's premises. It specifies that the selected arbitrator must be a licensed attorney in Louisiana and meet minimum requirements set by the commissioner. The arbitrator is authorized to issue judgments that may include penalties and attorney fees. Furthermore, the bill clarifies that it does not apply to surplus lines insurers, allowing them to use mandatory arbitration provisions without restriction. The legislation aims to ensure transparency and fairness in the arbitration process for policyholders while providing insurers with a structured framework for resolving disputes.