HLS 12RS-945 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 442
BY REPRESENTATIVE ABRAMSON
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; to provide penalties for3
failure of a rental dealer to maintain sufficient coverage; and to provide for related4
matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 32:793(D) is hereby amended and reenacted to read as follows: 7
ยง793. Rent with option-to-purchase program8
* * *9
D.(1) For the protection of the public, every Every rental dealer shall10
maintain a contingent automobile liability policy of insurance with minimum limits11
of one hundred thousand dollars per occurrence, three hundred thousand dollars12
aggregate, and fifty thousand dollars in property damage. It shall not be sufficient13
for any rental dealer to share in a policy of contingent automobile liability insurance,14
which could, under any circumstance, create a limit of less than that set forth herein,15
such as a master policy. Such policy shall be placed, if available, through an16
insurance company licensed by and admitted in the state of Louisiana.17
(2) Such policy shall be placed through an insurance company licensed by18
and admitted in the state of Louisiana or, upon a finding by the commissioner of19
insurance after a public hearing that there are no admitted carriers offering such a20 HLS 12RS-945 ORIGINAL
HB NO. 442
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
policy, through an approved nonadmitted insurance company with an A.M. Best1
rating of A or better. The permissibility of the use of an approved nonadmitted2
insurance company shall exist for not longer than twelve consecutive months from3
the date of determination by the commissioner, at which time another determination4
shall be required.5
(3) Failure to maintain such insurance shall result in the immediate6
suspension of the license of the rental dealer, which suspension shall be effective as7
of the date of the failure to maintain insurance coverage and shall remain effective8
until proof of the required insurance is furnished to the commission. If no proof is9
furnished to the commission within thirty days, the license of such rental dealer shall10
be revoked. 11
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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)]
Abramson HB No. 442
Abstract: Requires a rental dealer to maintain insurance covering his place of business and
operation that is in compliance with La. law; provides for suspension of the rental
dealer's license in the event that he fails to maintain such insurance.
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.
Proposed law provides for suspension of the license of a rental dealer who fails to maintain
insurance over his business and operation that is in compliance with La. law. Further
provides that the suspension shall be effective as of the date of failure to maintain such
insurance or until proof of the required insurance is furnished to the commission.
Proposed law provides that failure by a rental dealer to submit proof of the required
insurance to the commission within 30 days will result in the revocation of the rental dealer's
license.
Proposed law retains the provision in present law that requires a rental dealer to obtain this
insurance from an insurance company licensed by and admitted in the state of La. but adds
the alternative that a rental dealer may also obtain insurance through an approved
nonadmitted insurance company with an A.M. Best rating of A or above.
(Amends R.S. 32:793(D))