HLS 12RS-1040 ORIGINAL
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are additions.
Regular Session, 2012
HOUSE BILL NO. 622
BY REPRESENTATIVE KATRINA JACKSON
INSURANCE CLAIMS: Provides for deductible reimbursement by uninsured motorists
AN ACT1
To amend and reenact R.S. 32:900(M) and to enact R.S. 22:1295.1 and R.S. 32:873.1 and2
900(N), relative to uninsured motorists; to require reimbursement of insurance3
deductible costs for damages caused by uninsured motorists to insured motorists; to4
provide for penalties for uninsured motorists who fail to fulfill reimbursement5
obligations; to provide relative to suspension of driving privileges; and to provide6
for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 22:1295.1 is hereby enacted to read as follows:9
§1295.1. Uninsured motorists; duty to reimburse; suspension of driving privileges10
for failure to reimburse11
A. Any person who operates a motor vehicle in this state and is not an12
insured person as defined by the motor vehicle liability provisions pursuant to R.S.13
32:900(B)(2) et seq., and is in any manner involved in an accident in this state14
wherein fault has been attributed to him shall have a duty to reimburse the insurance15
deductible costs that any insured operator or owner who is a party to the accident, or16
whose property is subject to damages from the accident, must pay to repair damages.17
Fault may be attributed by the contents contained within an accident report, by a18
final adjudication from a court of competent jurisdiction, or by the uninsured19
operator's own admission.20 HLS 12RS-1040 ORIGINAL
HB NO. 622
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B. The uninsured operator shall have thirty days from notification by the1
secretary of the office of motor vehicles that the insured party has paid the deductible2
costs and submitted a claim to the secretary for reimbursement. In the event, within3
thirty days of notice, the uninsured operator does not provide the necessary4
reimbursement or proof that he has been released from liability or has been finally5
adjudicated not to be liable for damages caused, he shall be subject to a suspension6
of his driving privileges, pursuant to R.S. 32:873.1, until such time as the uninsured7
operator makes a payment to the insured party in the amount of the insured party's8
deductible.9
Section 2. R.S. 32:900(M) is hereby amended and reenacted and R.S. 32:873.1 and10
900(N) are hereby enacted to read as follows: 11
§873.1. Suspension of licenses; failure by uninsured operator to reimburse12
The office of motor vehicles shall suspend the driver's license of any person13
upon receipt of evidence that he has violated the provisions of R.S. 22:1295.1,14
operating a vehicle without the proof of financial responsibility required by this Code15
and failing to reimburse the insurance deductible costs an insured party has paid for16
damages caused. The suspension shall last until such time as the uninsured operator17
has made a payment to the insured party in the amount of the insured party's policy18
deductible and a reinstatement fee to the office of motor vehicles in the amount of19
one hundred dollars.20
* * *21
§900. "Motor Vehicle Liability Policy" defined22
* * *23
M. Failure of an operator to comply with the minimum liability limits24
required by Subsection B of this Section shall subject the operator to a duty of25
reimbursement of the insurance deductible costs to any insured driver or motor26
vehicle owner with whom the operator is in any manner involved in an accident in27
this state. If the operator fails to reimburse an insured party's deductible costs or to28 HLS 12RS-1040 ORIGINAL
HB NO. 622
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present proof that he is not liable, the operator shall be subject to a suspension of his1
driving privileges pursuant to R.S. 22:1295.1 and R.S. 32:873.1.2
M.N.(1) Except for those tow trucks carrying liability coverage under the3
provisions of R.S. 32:1717, for those motor vehicles owned or operated by persons4
engaged in the business of actual farming and used primarily, but not exclusively,5
in carrying farm produce from farm to market or returning therefrom carrying goods6
and merchandise back to the farms, individually or cooperatively, where such7
carrying is not primarily for hire, or for motor vehicles being used for the8
transportation of forest products in their natural state, every motor carrier as defined9
in R.S. 32:1(37) shall be covered by a liability policy. Public liability and property10
damage insurance on motor carriers operating a vehicle that has a gross vehicle11
weight or gross combined weight rating in excess of twenty thousand pounds shall12
have the following liability limits:13
(a) Those vehicles with a gross vehicle weight of more than twenty thousand14
pounds, but not more than fifty thousand pounds shall have:15
(I) Twenty-five thousand dollars because of bodily injury or death of one16
person in any one accident, and17
(ii) Subject to said limit for one person, fifty thousand dollars because of18
bodily injury to or death of two or more persons in any one accident, and19
(iii) Twenty-five thousand dollars because of damage to or destruction of20
property of others in any one accident.21
(b) Those vehicles with a gross vehicle weight of more than fifty thousand22
pounds shall provide a combined minimum single coverage limit of three hundred23
thousand dollars or the equivalent coverage of one hundred thousand dollars for24
injury or death to any one person, with a required minimum of not less than three25
hundred thousand dollars per occurrence, and twenty-five thousand dollars property26
damage.27
(2) If, however, the motor carrier has qualified with the United States28
Department of Transportation (Interstate Commerce Commission) as a self-insurer,29 HLS 12RS-1040 ORIGINAL
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as authorized by 49 U.S.C. 10927, or has qualified for self-insurance under the1
provisions of R.S. 32:1042, the carrier shall be authorized as a self-insurer in2
Louisiana.3
(3) The department may impose a fee not to exceed one dollar per vehicle4
to cover the expenses resulting from the administration of the provisions of this5
Subsection.6
(4) In addition, all security providers for motor carriers, beginning June 15,7
1995, shall notify the secretary, on a form required by the secretary, within forty-five8
calendar days from the date when any policy, bond, deposit, or other item of security9
is terminated, withdrawn, canceled, lapsed, or otherwise made ineffective.10
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)]
Katrina Jackson HB No. 622
Abstract: Requires uninsured drivers who are involved in an accident with an insured
driver in this state to reimburse the insured's deductible payment; provides for
suspension of the driver's license if he fails to reimburse the insured's deductible.
Present law requires automobile liability insurance on all motor vehicles used for operation
in this state in amount of no less than $15,000 because of bodily injury to or death of one
person; $30,000 because of bodily injury or death of two or more persons; and $25,000
because of damage to or destruction of property of others in any one accident.
Proposed law requires anyone who operates a motor vehicle without the requisite liability
insurance and is involved in a motor vehicle accident with someone who does carry the
requisite liability insurance to reimburse the deductible payment of the insured.
Proposed law requires the Dept. of Public Safety, office of motor vehicles, to suspend the
driver's license of the uninsured operator if he fails to reimburse the deductible payment of
the insured driver after 30 days of notice of his duty of reimbursement.
Proposed law allows the office of motor vehicles to charge a $100 reimbursement fee to
address the costs associated with sending notice to uninsured operators.
(Amends R.S. 32:900(M); Adds R.S. 22:1295.1 and R.S. 32:873.1 and 900(N))