HLS 12RS-1961 ORIGINAL
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 1074
BY REPRESENTATIVES BILLIOT, HENRY, AND LIGI AND SENATOR ALARIO
INSURANCE/AUTOMOBILE: Provides with respect to insurance requirements for rental
motor vehicle dealers
AN ACT1
To amend and reenact R.S. 32:793(D), relative to rental dealers; to provide relative to2
contingent automobile liability policies for rental dealers; and to provide for related3
matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 32:793(D) is hereby amended and reenacted to read as follows: 6
ยง793. Rent with option-to-purchase program7
* * *8
D. Every rental dealer shall maintain a contingent automobile liability policy9
of insurance with minimum limits of one hundred thousand dollars per occurrence,10
three hundred thousand dollars aggregate, and fifty thousand dollars in property11
damage. It shall not be sufficient for any rental dealer to share in a policy of12
insurance, which could, under any circumstance, create a limit of less than that set13
forth herein. Such policy shall be placed , if available, through an insurance company14
licensed by and admitted in the state of Louisiana , or an approved nonadmitted15
insurance company that is licensed by the state of Louisiana and has an A.M. Best16
rating of B+ or better. 17
* * *18 HLS 12RS-1961 ORIGINAL
HB NO. 1074
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Billiot HB No. 1074
Abstract: Allows rental dealers to purchase the contingent automobile liability policy
required by present law from an approved nonadmitted insurance company with an
A.M. Best rating of B+ or better.
Present law requires every rental dealer to maintain a contingent automobile liability policy
of insurance with minimum limits of $100,000 per occurrence, $300,000 aggregate, and
$50,000 in property damage.
Present law requires rental dealers to purchase their policy of contingent automobile liability
insurance through an insurer that is licensed by and admitted in the state.
Proposed law extends present law to allow rental dealers to purchase the contingent
automobile liability policy required by present law from approved nonadmitted insurers that
are licensed by the state and have an A.M. Best rating of B+ or better.
(Amends R.S. 32:793(D))