HLS 12RS-583 ORIGINAL
Page 1 of 1
Regular Session, 2012
HOUSE BILL NO. 308
BY REPRESENTATIVE THIERRY
INSURANCE/AUTOMOBILE: Repeals provisions relative to unfair trade practices
involving automobile insurance
AN ACT1
To repeal R.S. 22:1965 and 1966, relative to unfair trade practices in automobile insurance;2
to repeal laws relative to unfair trade practices.3
Be it enacted by the Legislature of Louisiana:4
Section 1. R.S. 22:1965 and 1966 are hereby repealed in their entirety.5
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)]
Thierry HB No. 308
Abstract: Repeals provisions relative to unfair trade practices in automobile insurance.
Present law provides that it as unfair method of competition, as well as unfair and deceptive,
for insurers to establish a contract or agreement with any company to arrange for insurance
repairs, where the insurer and repair company agree to a price for repair that will allow the
insurer to retain a percentage of the repair costs.
Present law further provides that it is an unfair method of competition, as well as unfair and
deceptive, for an insurer to establish a contract or agreement with any individual or company
to manage, subcontract, broker, or arrange insurance repair for any glass repair or
replacement on a motor vehicle.
The Louisiana Supreme Court in Globe Glass & Mirror Co. v. Brown, 917 F. Supp. 447
(E.D. La 1996) declared that the practice of limiting which company an insurer may contract
with for repairs is an impermissible violation of the dormant Commerce Clause and is
unconstitutional.
Proposed law repeals present law declared to be unconstitutional in the case of Globe Glass
& Mirror Co. v. Brown in its entirety.
(Repeals R.S. 22:1965 and 1966)