SLS 10RS-432 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010
SENATE BILL NO. 150
BY SENATOR DUPLESSIS
INSURANCE RATES. Provides relative to automobile insurance rates after a voluntary
lapse in coverage occurs. (8/15/10)
AN ACT1
To enact R.S. 22:1284.1, relative to motor vehicle insurance; to prohibit an increase in the2
premium rate when there is a lapse in coverage under certain circumstances; and to3
provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 22:1284.1 is hereby enacted to read as follows: 6
ยง1284.1. Motor vehicle insurance; consideration of lapse in coverage7
prohibited8
A. No insurer shall increase the premium rate or increase or add a9
surcharge on any policy of motor vehicle insurance when such action is based10
on consideration of a lapse in coverage regarding the insured as provided in this11
Section.12
B. As used in this Section, a"lapse in coverage" is that period of time,13
not to exceed twenty-four months, during which the owner of a motor vehicle14
who formerly maintained liability coverage on a vehicle, as required under the15
Motor Vehicle Safety Responsibility Law, voluntarily surrenders the vehicle's16
license plate to the office of motor vehicles and ceases to maintain a policy of17 SB NO. 150
SLS 10RS-432 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
insurance or other security as required by the Motor Vehicle Safety1
Responsibility Law.2
C. Any insurer who violates the provisions of this Section shall refund3
to the insured person the amount of premium which would have been charged4
if the insurer had complied with this Section. The insured shall be entitled to5
attorney fees in a suit to enforce the provisions of this Section.6
D. Notwithstanding any other provisions of law to the contrary, one or7
more lapses in coverage shall not be the sole basis for an insurer's denial of an8
application for a policy of motor vehicle insurance nor shall such lapse in9
coverage be considered by an insurer in determining the rates for such a policy.10
In addition, no insurer shall require that such coverage be provided by another11
insurer based solely upon such a lapse in coverage.12
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Cheryl Horne.
DIGEST
Proposed law prohibits an insurer from increasing the rate or increasing or adding a
surcharge when such action is based on consideration of a lapse in coverage.
Proposed law defines "lapse in coverage" as period of time not to exceed 24 months, during
which the owner of a motor vehicle who formerly maintained liability coverage on a vehicle,
as required under the Motor Vehicle Safety Responsibility Law, voluntarily surrenders the
vehicle's license plate to the office of motor vehicles and ceases to maintain a policy of
insurance or other security as required by the Motor Vehicle Safety Responsibility Law.
Proposed law requires any insurer who violates this Section to refund to the insured person
the amount of premium which would have been charged if the insurer had complied with
proposed law. Authorizes the insured to collect payment of attorneys fees in a suit to
enforce proposed law.
Proposed law requires that one or more lapses in coverage shall not be the sole basis for an
insurer's denial of an application for a policy of motor vehicle insurance nor shall such lapse
in coverage be considered by an insurer in determining the rates for such a policy. No
insurer shall require that such coverage be provided by another insurer based solely upon
such a lapse in coverage.
Effective August 15, 2010.
(Adds R.S. 22:1284.1)