Prohibits a policyholder from allowing any person excluded from liability coverage to drive the covered vehicle
The proposed law sets out clear guidelines for policyholders and insurers, emphasizing accountability and transparency in the management of excluded drivers. The Department of Public Safety and Corrections, along with local law enforcement, is granted the authority to investigate violations and issue penalties. This may lead to increased compliance with insurance policies and potentially reduce instances of unlawfully permitting excluded drivers to operate vehicles, thereby enhancing overall road safety and accountability among motorists.
House Bill 1147 establishes new provisions concerning motor vehicle liability policies, specifically aimed at regulating the exclusion of drivers from coverage. The bill requires that any person excluded from liability coverage must be a party to the written agreement and must sign the driver exclusion form. This is a significant change from previous law, which allowed for exclusions without the excluded person's consent. Furthermore, it mandates that a new exclusion form is required whenever a policy is renewed, reinstated, or amended, ensuring that exclusions remain up-to-date throughout the life of the policy.
The sentiment surrounding HB 1147 appears positive among those advocating for stricter insurance regulations, as it aims to mitigate risks associated with excluded drivers and protect both insurers and other road users. However, there may be some contention among policyholders who feel that these requirements impose additional burdens on them, especially those who may not be fully aware of the implications of excluding drivers from coverage.
Notable points of contention include concerns regarding the potential administrative burden placed on policyholders to maintain accurate records regarding excluded drivers and the necessity for enforcing compliance through penalties. Some critics argue that the bill could lead to unintended consequences, such as increased insurance costs if insurance providers choose to raise premiums or cancel policies for violations. Nonetheless, supporters argue that these measures are necessary to protect all motorists and improve the integrity of automobile insurance policies.