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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014 ENROLLED
SENATE BILL NO. 620
BY SENATOR AMEDEE
AN ACT1
To amend and reenact R.S. 32:880, relative to proof of financial responsibility for2
nonresident drivers involved in accidents; to provide for self-insurance or self-3
insurance plans as proof of financial security; to provide for payment of claims by4
nonresident self-insurers and self-insurance plans; to provide for processing claims5
involving certain self-insurers and self-insurance plans; to provide penalties for6
actions by nonresident self-insurers and self-insurance plans deemed arbitrary,7
capricious, and without probable cause; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 32:880 is hereby amended and reenacted to read as follows: 10
ยง880. Nonresident drivers; accidents11
A. Whenever a nonresident driver is involved in an accident in this state and12
is issued a traffic citation in connection with that accident, the nonresident driver13
shall comply with one of the following items:14
(1) Show proof of liability insurance coverage as required by law ,.15
(2) Show proof of coverage as a self-insurer or under a self-insurance16
plan from the state in which he is a resident.17
(3) Post a bond in an amount sufficient to cover the damage caused in the18
accident, or.19
(3)(4) Deposit his driver's license with the law enforcement agency which20
that investigates the accident.21
B. As used in this Section, the phrase "nonresident driver" means a person22
who operates a motor vehicle in this state and who has a foreign driver's license, or23
a foreign registration for the motor vehicle, or both.24
C.(1) No proof of coverage as a self-insurer or under a self-insurance25
ACT No. 500 SB NO. 620 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
plan from the state in which the nonresident driver is a resident shall be valid1
or in compliance with the provisions of this Section unless the self-insurer or2
plan agrees to be subject to the following provisions regarding settlement of a3
claim for damages:4
(a) The self-insurer or plan shall pay the amount of any claim due a5
claimant within thirty days after receipt of satisfactory proof of loss from the6
claimant or any party in interest.7
(b) The self-insurer or plan shall pay the amount of any third-party8
property damage claim and any reasonable medical expense claim due any bona9
fide third-party claimant within thirty days after written agreement of10
settlement of the claim from the third-party claimant.11
(2) Failure to make a payment within thirty days after receipt of12
satisfactory proof of loss as provided in Subparagraph (1)(a) of this Subsection13
or within thirty days after written agreement of settlement as provided in14
Subparagraph (1)(b) of this Subsection when the failure is found to be15
arbitrary, capricious, or without probable cause, shall subject the self-insurer16
or self-insurance plan to a penalty, in addition to the amount of the loss or17
settlement agreement, of fifty percent damages on the amount due or one18
thousand dollars, whichever is greater, payable to the respective claimant or,19
if a partial payment or tender has been made, fifty percent damages on the20
difference between the amount paid or tendered and the amount found to be21
due, as well as reasonable attorney fees and costs.22
(3)(a) The self-insurer or self-insurance plan owes a duty of good faith23
and fair dealing to the injured claimant and has an affirmative duty to adjust24
any claim fairly and promptly and to make a reasonable effort to settle any25
claim with a claimant.26
(b) Any self-insurer or self-insurance plan that breaches these duties27
shall be liable for any damages sustained as a result of the breach.28
(c) Any one of the following acts, if knowingly committed or performed29
by a self-insurer or self-insurance plan, constitutes a breach of the insurer's30 SB NO. 620 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
duties imposed in Subparagraph (a) of this Paragraph:1
(i) Misrepresenting pertinent facts or insurance policy provisions2
relating to any coverages at issue.3
(ii) Failing to pay a settlement within thirty days after an agreement is4
reduced to writing.5
(iii) Denying coverage or attempting to settle a claim on the basis of an6
application that the self-insurer or self-insurance plan knows was altered7
without notice to, or knowledge or consent of, the claimant.8
(iv) Misleading a claimant as to the applicable prescriptive period.9
(v) Failing to pay the amount of any claim due a claimant within sixty10
days after receipt of satisfactory proof of loss from the claimant when the11
failure is arbitrary, capricious, or without probable cause.12
(4) In addition to any general or special damages to which a claimant is13
entitled for breach of the imposed duty pursuant to Subparagraph (3)(a) of this14
Subsection, the claimant may be awarded penalties assessed against the self-15
insurer or self-insurance plan in an amount not to exceed two times the damages16
sustained or five thousand dollars, whichever is greater.17
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: