ENROLLED
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Regular Session, 2010
HOUSE BILL NO. 581
BY REPRESENTATIVE KLECKLEY
AN ACT1
To amend and reenact R.S. 22:361(7) and (8) and 364(introductory paragraph) and to enact2
R.S. 22:361(9) and (10) and 364(B), relative to vehicle mechanical breakdown3
insurers; to provide a definition of road hazard and vehicle component coverage4
contracts; to provide an exception to the licensing requirements for vehicle5
mechanical breakdown insurers; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 22:361(7) and (8) and 364(introductory paragraph) are hereby8
amended and reenacted and R.S. 22:361(9) and (10) and 364(B) are hereby enacted to read9
as follows: 10
§361. Definitions11
As used in this Subpart:12
* * *13
(7) "Road hazard" shall include but not be limited to potholes, rocks, curbs,14
wood debris, other debris, nails, screws, bolts, metal parts, or glass; however, "road15
hazard" shall not include any damage caused by collision with another vehicle,16
vandalism, or other causes usually covered under the comprehensive or collision17
coverages provided by an automobile physical damage policy.18
(8) "Vehicle component coverage contracts" means a contract which19
provides the owner or purchaser of a motor vehicle with one or more of the20
following coverages:21
(a) "Paintless dent repair contract" means a contract which provides for the22
repair of or promises to pay for all or part of the cost to repair or remove dents,23
dings, or creases from the exterior of the motor vehicle utilizing the paintless dent24 ENROLLEDHB NO. 581
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repair process, provided that a paintless dent repair contract shall not cover sanding,1
bonding, painting, or the replacement of body panels.2
(b) "Tire and wheel contract" means a contract which promises to pay for all3
or part of the cost to repair or replace tires and wheels which are damaged due to4
contact with a road hazard.5
(c) "Windshield contract" means a contract which promises to pay for all or6
part of the cost of the repair or of the replacement of windshield or window glass on7
a motor vehicle when the damage to the glass is caused by contact with a road8
hazard.9
(7) (9) "Vehicle mechanical breakdown insurance policy" means any10
contract, agreement, or instrument whereby a person other than the owner, seller, or11
lessor of a vehicle assumes the risk of and or or the expense or portion thereof for the12
mechanical breakdown or mechanical failure of a motor vehicle and may include13
other customer assistance and convenience services, such as vehicle rental assistance,14
towing assistance, trip interruption, and roadside assistance, and shall include those15
agreements commonly known as vehicle service agreements or extended warranty16
agreements.17
(8) (10) "Vehicle mechanical breakdown insurer" means any person or18
organization, whether domestic, foreign, or alien, issuing or attempting to issue19
vehicle mechanical breakdown policies or vehicle component coverage contracts as20
defined herein.21
* * *22
§364. Qualifications23
A. The commissioner shall not license a vehicle mechanical breakdown24
insurer unless all of the following conditions are met:25
* * *26
B. The requirement for licensure shall not apply to tire and wheel coverage27
sold as a part of a service package in concert with the sale of one or more tires or one28
or more wheels.29 ENROLLEDHB NO. 581
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Section 2. This Act shall become effective upon signature by the governor or, if not1
signed by the governor, upon expiration of the time for bills to become law without signature2
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If3
vetoed by the governor and subsequently approved by the legislature, this Act shall become4
effective on the day following such approval.5
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: