Provides relative to nonresident self-insurers and self-insurance plans involving certain motor vehicle accident claims. (8/1/14) (EN NO IMPACT See Note)
Impact
The changes proposed by SB 620 would streamline the financial responsibility process for nonresident drivers and somewhat harmonize the regulations for individuals operating vehicles in Louisiana but registered elsewhere. By facilitating the acknowledgment of out-of-state self-insurance, the bill aims to aid nonresident drivers in fulfilling local requirements efficiently. This legislative shift could lead to a more uniform process for addressing claims and reduce discrepancies in compliance between Louisiana and other states regarding motor vehicle insurance.
Summary
Senate Bill 620, introduced by Senator Amedee, addresses the requirements for nonresident drivers involved in accidents within Louisiana. The bill amends existing laws regarding proof of financial responsibility, allowing nonresident drivers to demonstrate compliance through self-insurance or self-insurance plans from their home states. Specifically, it outlines the conditions under which such proof is deemed valid and mandates that nonresident self-insurers pay claims promptly, ensuring that claimants are compensated within a specified time frame following satisfactory proof of loss.
Sentiment
The sentiment around SB 620 appears to be generally positive among policymakers who advocate for reducing bureaucracy and facilitating easier compliance for nonresident drivers. By supporting self-insurance options, the bill is seen as enhancing the flexibility and operational ability of drivers who may not hold traditional insurance policies in Louisiana. However, there may be apprehensions about the adequacy of self-insurance in guaranteeing the protection of local claimants, particularly regarding the timeliness and reliability of claim settlements.
Contention
One notable point of contention related to SB 620 pertains to the responsibilities imposed on nonresident self-insurers. The bill includes penalties for failures to pay claims in a timely manner when those failures are found to be arbitrary or capricious. This stipulation could lead to disputes over what constitutes appropriate conduct under the law, raising concerns among critics who may worry about enforceability and protections for Louisiana residents. The primary focus remains on finding a balance between providing flexibility for nonresident drivers and ensuring adequate protection and recourse for Louisiana claimants.
Authorizes promulgation of rules and regulations regarding processing of and payment of claims for certain self-insurers and self-insurance plans. (8/1/14)
Makes it an unfair claims practice for insurer to designate a motor vehicle a total loss if the cost to repair motor vehicle to its pre-accident condition is less than 75% to 80% of the fair market value.
Makes it an unfair claims practice for insurer to designate a motor vehicle a total loss if the cost to repair motor vehicle to its pre-accident condition is less than 85% of the fair market value.