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Regular Session, 2012
HOUSE BILL NO. 404
BY REPRESENTATIVE EDWARDS
INSURANCE/AUTOMOBILE: Provides for joint liability for damages caused by an
excluded driver
AN ACT1
To enact R.S. 22:1295.1, relative to motor vehicle liability insurance; to provide for liability2
of owners of motor vehicles for certain operators excluded from coverage; and to3
provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 22:1295.1 is hereby enacted to read as follows: 6
ยง1295.1. Excluded driver; owner; liability7
A. The owner and the operator of a motor vehicle shall be solidarily liable8
for the damages caused by the operator's negligent or intentional act when the9
operator has been designated as a person excluded from coverage on the motor10
vehicle liability insurance policy pursuant to R.S. 32:900(L) and the operator is11
operating the vehicle with the express or implied permission of the owner.12
(1) The liability of the owner provided by this Section shall not exceed the13
mandatory minimum limits for automobile insurance as provided by R.S. 32:900,14
unless the owner has a parent-child or tutorship relationship to the operator, or unless15
the owner is otherwise vicariously liable or responsible for the acts and omissions16
of the operator.17
(2) An excluded driver operating a motor vehicle shall be presumed to have18
done so with the express or implied permission of the owner. Any owner contesting19 HLS 12RS-522 ENGROSSED
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this rebuttable presumption shall have the burden of proving the operator did not1
have his permission to operate the vehicle.2
B. If the person has been excluded pursuant to R.S. 32:900(L), the insurer3
shall not be liable, and no liability or obligation of any kind shall result to the insurer4
for bodily injury, loss, or damage under any coverage of the policy, nor shall the5
insurer be obligated to provide a defense or pay any costs of defense.6
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)]
Edwards HB No. 404
Abstract: Provides for solidary liability for damages resulting from an excluded driver's
operation of a vehicle when the owner provides express or implied permission to the
excluded driver to operate the vehicle.
Present law provides that an insurer and insured may agree to exclude named persons from
coverage of a policy of motor vehicle liability insurance.
Proposed law provides that the owner of a motor vehicle and the operator who has been
excluded from coverage shall be solidarily liable for the damages caused by the operator's
negligent or intentional acts that occur as a result of his operation of the vehicle.
Proposed law applies only when the owner provides express or implied permission to the
excluded driver to operate the vehicle.
Proposed law limits the liability that can be attributed to the owner to the minimum required
automobile insurance as provided by R.S. 32:900, unless the owner is the parent or tutor of
the excluded driver, or is otherwise vicariously liable or responsible for the acts or omissions
of the excluded driver.
Proposed law provides for a rebuttable presumption that the excluded driver was operating
the vehicle with the implied or express permission of the owner. Further provides that the
owner has the burden of proof in rebutting this presumption.
Proposed law provides that the insurer shall not be liable for bodily injury, loss, or damage
under any coverage of the policy if the operator was properly excluded, as set forth by the
provisions of present law (R.S. 32:900(L)), and that the insurer is not obligated to provide
a defense or to pay the costs of defense.
(Adds R.S. 22:1295.1)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Civil Law and Procedure
to the original bill.
1. Changed liability of the owner and operator from joint to solidary liability. HLS 12RS-522 ENGROSSED
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2. Replaced reference as to whether the owner knew or should have known the
excluded driver was operating the vehicle with a reference as to whether the
excluded driver had express or implied permission to operate the vehicle.
3. Added provision limiting liability of the owner to the minimum required
automobile insurance coverage.
4. Added provision specifying that the insurer is not obligated to provide a defense
or pay the costs of defense.