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October 2024
SKYROCKETING RATES The Reasons Behind Louisiana’s High Car Insurance Premiums
It is not just your imagination — car insurance in Louisiana really is more expensive than just about anywhere else. According to the State Insurance Report, the average annual premium for car insurance in Louisiana is $2,546. That is the second-highest average — higher than 48 other states — in the country and is just $14 behind the most expensive, Florida, at $2,560. Several factors contribute to these sky-high rates, but legislators like to pin the blame on personal injury attorneys. While it is true that Louisiana has the most vehicle-related lawsuits of any state in the region, lawmakers are trying to distract you from the actual problems driving up these rates. Uninsured and Underinsured Motorists If you are a motorist in Louisiana, you share the road with a lot of uninsured and underinsured motorists. According to the latest statistics, nearly 14% of Louisiana motorists are uninsured, slightly higher than the national average. A more significant problem is that Louisiana has a disproportionately high number of underinsured motorists whose insurance policies do not adequately cover the damages they may incur during an accident. Another issue is that motorists have trended toward driving more expensive vehicles in recent years, which further compounds the issue of underinsured and uninsured motorists. Insurance rates go up to account for these realities, which is ironic because high insurance rates are what drive up the proportion of uninsured and underinsured motorists in the first place. Lack of Competition The fewer insurance companies in a state, the more expensive rates generally become. For example, Ohio has a saturated and competitive car insurance market, but the average annual premium is only $1,023. It’s not like our roads are busier than theirs, either. Despite Louisiana only having a population of around 4.6 million, we pay more than double for car insurance than Ohio does, despite their having a population of nearly 12 million. The simple truth is that it is easier for our legislators to blame lawyers than do the work to foster greater competition in the insurance industry. No More Direct Action Previously, Louisiana had a comprehensive Direction Action Statute. This allowed an injured party to directly sue an insurance company. However, effective August of this year, HB 337, § (B) (i) removes the right of direct action against insurers, except when certain circumstances apply, such as the insured filing for bankruptcy, becoming insolvent, or the insured defendant refusing to answer or otherwise
defend the action against them within 180 days of being served. While legislators argue this will somehow reduce insurance premiums, in reality it only serves to strengthen insurance companies’ position and to limit your ability to recoup damages in the event of an accident. The Takeaway Legislators may like to blame high car insurance premiums on personal injury attorneys, but the reality could not be more different. Car insurance companies can charge higher premiums due to a lack of competition, and the number of uninsured and underinsured motorists in our state certainly does not help. Instead of focusing on those looking to recoup costs in the event of an accident, our
legislators should take a closer look at the car insurance companies causing this problem in the first place.
–Dathan Hill P.S. If you or a family member has been in an auto accident, we are here to help! Give us a call today at 225-266-2948 for a free initial consultation.
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Battle for Survival TIKTOK IS CHALLENGING THE BAN
The clock is ticking for TikTok, the world’s most popular social media app, as it faces a federal ultimatum: Either the Chinese parent company, ByteDance, sells its stake in the company, or TikTok will be removed from U.S. app stores by Jan. 19, 2025. It is difficult to fathom that an app downloaded tens of millions of times and receiving over $100 million in revenue every month may leave the American market at the start of next year. But this is just the U.S. government’s latest step since TikTok first arrived on the scene. The TikTok Saga Douyin, the predecessor to TikTok, started in China in 2016. In 2017, it merged with Musical.ly, an app for posting lip-syncing videos; at one point, it topped the charts on the Apple App Store and soon rose to global stardom. Then, the app got a new name, TikTok, and a revolutionary algorithm. The algorithm influenced users to binge-watch content and presented videos from various genres and topics to keep them hooked. While gaining popularity stateside, it drew no small amount of scrutiny from government watchdogs and federal agencies. In September 2019, the Washington Post reported that images of democratic protests in Hong Kong were being suppressed, while posts with the #trump2020 tag received millions of views. TikTok denied political favoritism and alleged their app was a neutral platform. Despite TikTok’s reassurance, the Pentagon recommended all U.S. military personnel delete the app from their phones, regardless of whether it was for personal or government work. In January 2020, the Pentagon banned the app entirely on all military phones.
“On its website, TikTok describes the moves it has made to improve data security and privacy. Still, none of these measures have persuaded the federal government of their benign intentions.”
In May 2020, privacy groups began to raise concerns that TikTok posed a threat to children. Just two months later, India banned TikTok following a military clash at their disputed border with China. Despite these hiccups, TikTok claimed to have over a billion monthly users by September 2021. Further problems with the app materialized in 2022 when viral hoaxes and harmful content promoting eating disorders caused outrage nationwide. In December 2022, the FBI warned that the Chinese government could use the app to influence American citizens. In 2024, Congress drafted legislation to ban the app and force ByteDance to sell TikTok officially. The Future of TikTok President Biden signed H.R. 815 into law on April 24, 2024, which contains a provision that “prohibits distributing, maintaining, updating, or providing internet hosting services for a foreign adversary controlled application (e.g., TikTok).” That is strong language and indicates the government is not likely to back down from its demands. Despite this, TikTok has challenged the law, arguing the ban is unconstitutional. More than a dozen social and racial justice groups recently supported TikTok’s cause. On its website, TikTok describes the moves it has made to improve data security and privacy. Still, none of these measures have persuaded the federal government of their benign intentions. In June 2024, in response to the ban being signed into law, TikTok released a letter alleging that the Biden administration had negotiated with the company using “political demagoguery,” or, in other words, in favor of appealing to voters rather than finding an equitable solution. Their case is headed to the U.S. Court of Appeals later this year.
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TAKE A BREAK
Gas prices are often a topic of conversation, but usually for less-than-pleasant reasons. Whenever the subject appears in the news, it is most often because prices have become outrageously high . However, this article will take a different approach. Have you ever wondered why gas price tickers include a 9/10 of a cent at the end? It started nearly a century ago but remains to this day for surprising reasons. Great Depression Decisions The 1930s were a time of great economic uncertainty. The stock market crashed in 1929, and the federal government took extensive measures to balance the budget. Among these was the Revenue Act of 1932. This law introduced several tax hikes, including a more than 20% increase in estate and personal income taxes. However, it also introduced a one-cent tariff on gasoline and fuel oil. While this may not seem like a lot in today’s currency — the average cost of a gallon of gas now is around $3.53 — back then, it was a significant burden on motorists. After all, the average price of a gallon of gas in 1932 was just $0.18, so a one-cent tariff represented a more than 5% increase in price. In today’s money, it would be equivalent to a $0.22 tax per gallon of gas. In 1933, the gas tariff accounted for 8% of the federal government’s tax revenue. Fractional Prices Gas station owners paid the new tariff when purchasing their fuel from suppliers, but they had the option of paying the tax themselves, in full or in part, to take the hit in place of their customers. This is where fractional prices first came into play: Gas station owners would advertise that they were paying, say, half of the one-cent tariff on gasoline, which means their prices would only increase by 5/10 of a cent. Over time, the tariff became less relevant, but fractional prices remained. This has largely contributed to the psychological aspect of paying 9/10 of a cent rather than a full cent — the same thinking behind charging $1.99 rather than $2 for a product. The Strange Gas Law Why the 9/10 of a Cent?
PUMPKIN PIE FRENCH TOAST Inspired by AllRecipes.com
Ingredients
• 1 tsp vanilla extract • 1/4 tsp pumpkin pie spice • 1/4 cup finely chopped walnuts • 8 slices day-old bread • Maple syrup, to taste
• 1 1/2 tsp vegetable oil, or as needed • 1/2 cup half-and-half • 1/4 cup canned pumpkin purée • 3 large eggs • 1 tsp ground cinnamon
Directions 1. Lightly oil a skillet and heat over medium heat.
2. Whisk half-and-half, pumpkin purée, eggs, cinnamon, vanilla, and pumpkin pie spice together in a bowl. Stir in walnuts until evenly distributed. 3. Place 1 slice of bread in the bowl and let it soak briefly to coat both sides. Lift bread to let excess liquid drip back into the bowl, then transfer to the hot skillet. 4. Cook for 2–3 minutes or until golden brown, then flip and cook the other side until done. 5. Stir batter to redistribute walnuts and repeat with other slices of bread, cooking in several batches if necessary. 6. Serve warm with maple syrup.
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PRST STD US POSTAGE PAID BOISE, ID PERMIT 411
225-266-2948 www.DathanLHill.com 637 Saint Ferdinand Street Baton Rouge, LA 70802 INSIDE THIS ISSUE
1
Why Louisiana Car Insurance Is So Expensive
TikTok’s Appeal Against the Ban
2
Pumpkin Pie French Toast
3
The Law About Gas Pricing
4
The NFL’s Massive Antitrust Fine
NFL’S RECENT ANTITRUST RULING What Led to the Historic Fine Over Sunday Ticket
than offering the ability to purchase only the games they were interested in. For instance, if you are a Philadelphia Eagles fan but live in Florida, your local on-air broadcasts are unlikely to show Eagles games. In that case, if you wanted to watch all the Eagles’ games, you’d have to shell out a good chunk of change to access those games. As of 2024, a subscription to NFL Sunday Ticket costs $449 per year. After five hours of deliberation, the jury agreed with the plaintiffs and awarded $4.7 billion in damages to the residential subscribers and $96 million to the business subscribers. Due to federal antitrust laws, those damages can be tripled. That means the NFL may be liable for up to $14.39 billion in damages. The NFL has appealed the decision, but if upheld, each NFL team could be forced to pay nearly $450 million in damages.
deal with Google’s YouTube TV. However, the NFL’s exclusive deals for Sunday Ticket have come at a cost. After a trial in June that lasted just three weeks, a jury in Los Angeles awarded over $4.7 billion in damages to the plaintiffs in an antitrust class-action lawsuit against the NFL. The Trial The Mucky Duck sports bar in San Francisco initially filed the suit in 2015; an appeals court dismissed then reinstated the case in 2017 before it became a class-action lawsuit. The lawsuit now covers about 2.4 million residential subscribers and 48,000 business subscribers. The plaintiffs alleged that the NFL’s agreement with DirecTV, and now YouTube TV, violated antitrust laws. Not only did the NFL allegedly overcharge both residential and commercial subscribers, but it also removed competition. It forced fans to purchase access to all games rather
NFL Sunday Ticket, also known as Sunday Ticket, is a sports package allowing purchasers to view regular season NFL games not carried by local broadcasts in their area. Sunday Ticket has been around since 1994, with DirecTV offering it exclusively until 2022 when the NFL signed a seven-year, $14 billion
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