HLS 14RS-805 ORIGINAL
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Regular Session, 2014
HOUSE BILL NO. 532
BY REPRESENTATIVE SEABAUGH
INSURANCE/LIABILITY: Provides relative to direct actions by third parties against
insurers
AN ACT1
To amend and reenact R.S. 22:1269(B), relative to actions initiated against motor vehicle2
liability insurers by third parties; to limit the circumstances in which a third party3
may take direct action against an insurer; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 22:1269(B) is hereby amended and reenacted to read as follows: 6
ยง1269. Liability policy; insolvency or bankruptcy of insured and inability to effect7
service of citation or other process; direct action against insurer8
* * *9
B.(1) The injured person or his survivors or heirs mentioned in Subsection10
A of this Section, at their option, shall have a right of direct action against the insurer11
within the terms and limits of the policy; and, such action may be brought against the12
insurer alone, or against both the insured and insurer jointly and in solido, in the13
parish in which the accident or injury occurred or in the parish in which an action14
could be brought against either the insured or the insurer under the general rules of15
venue prescribed by Code of Civil Procedure Art. 42 only; however, such action may16
be brought against the insurer alone only when at least one of the following applies:17
(a) The insured has been adjudged bankrupt by a court of competent18
jurisdiction or when proceedings to adjudge an insured bankrupt have been19
commenced before a court of competent jurisdiction.20 HLS 14RS-805 ORIGINAL
HB NO. 532
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(b) The insured is insolvent.1
(c) Service of citation or other process cannot be made on the insured.2
(d) When the cause of action is for damages as a result of an offense or quasi-3
offense between children and their parents or between married persons.4
(e) When the insurer is an uninsured motorist carrier.5
(f)(c) The insured is deceased.6
(2) This right of direct action shall exist whether or not the policy of7
insurance sued upon was written or delivered in the state of Louisiana and whether8
or not such policy contains a provision forbidding such direct action, provided the9
accident or injury occurred within the state of Louisiana may be brought against the10
insurer alone in the parish in which the accident or injury occurred or in the parish11
in which an action could be brought against either the insured or the insurer under12
the general rules of venue prescribed by Code of Civil Procedure Article 42 only.13
Nothing contained in this Section shall be construed to affect the provisions of the14
policy or contract if such provisions are not in violation of the laws of this state.15
(3) When the circumstances enumerated in Paragraph (1) of this Subsection16
do not apply, neither the injured person nor the survivors or heirs mentioned in17
Subsection A of this Section shall have a right of direct action against the insurer.18
The injured person or his survivor or heirs shall bring an action against the insured,19
wherein a court of competent jurisdiction may render a finding of liability and20
damages against the insured. Nothing contained in this Section shall be construed21
to affect the insured's right to enforce the provisions of the policy or contract against22
the insurer.23
* * *24 HLS 14RS-805 ORIGINAL
HB NO. 532
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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)]
Seabaugh HB No. 532
Abstract: Limits an injured third party's right of direct action against an insurer to certain
exceptions; in the absence of these exceptions, the injured third party must take legal
action against the insured party.
Present law provides that a policy or contract of liability insurance must provide that the
insolvency or bankruptcy of the insured will not release the insurer from its duty to pay
damages. Proposed law retains present law.
Present law provides that an injured third party has the right to take direct legal action
against the insurer if that right is provided for within the terms and limits of the policy. The
third party has the right to sue both the insurer and the insured jointly and in solido, or he
may sue only the insurer alone if at least one of the following circumstances apply:
(1)The insured has been adjudged bankrupt or bankruptcy proceedings have
commenced in a court of competent jurisdiction.
(2)The insured is insolvent.
(3)Service of citation or other process cannot be made on the insured.
(4)The cause of action is for damages as a result of an offense or quasi-offense between
children and their parents or between married persons.
(5)The insurer is an uninsured motorist carrier.
(6)The insured is deceased.
Proposed law retains the portion of present law that allows for any additional terms in a
policy which do not violate state law to remain unaffected; otherwise, limits the
circumstances in which a third party may take direct action against an insurer only to the
following three circumstances:
(1)The insured has been adjudged bankrupt or bankruptcy proceedings have
commenced in a court of competent jurisdiction.
(2)The cause of action is for damages as a result of an offense or quasi-offense between
children and their parents or between married persons.
(3)The insured is deceased.
Proposed law provides that if the circumstances do not meet one of the three exceptions
provided for in proposed law, the third party does not have a right of direct action against
the insured. The third party must sue the insured to obtain a judgment of liability and
damages. HLS 14RS-805 ORIGINAL
HB NO. 532
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are additions.
Proposed law clarifies that the insured's right to enforce the terms of the policy against the
insurer remains unaffected.
(Amends R.S. 22:1269(B))