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2015 Regular Session
SENATE BILL NO. 206
BY SENATOR NEVERS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CIVIL PROCEDURE. Provides the option of a right of direct action against the insurer
alone when the insured is a small business employing fifty or fewer full-time employees.
(8/1/15)
1 AN ACT
2 To amend and reenact R.S. 22:1269(B)(1), relative to civil actions against insurers; to
3 provide relative to direct action against an insurer alone under certain circumstances;
4 to authorize direct action relative to certain small businesses; to provide certain
5 terms, conditions, and procedures; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 22:1269(B)(1) is hereby amended and reenacted to read as follows:
8 ยง1269. Liability policy; insolvency or bankruptcy of insured and inability to effect
9 service of citation or other process; direct action against insurer
10 * * *
11 B.(1) The injured person or his survivors or heirs mentioned in Subsection
12 A of this Section, at their option, shall have a right of direct action against the insurer
13 within the terms and limits of the policy; and, such action may be brought against the
14 insurer alone, or against both the insured and insurer jointly and in solido, in the
15 parish in which the accident or injury occurred or in the parish in which an action
16 could be brought against either the insured or the insurer under the general rules of
17 venue prescribed by Code of Civil Procedure Art. 42 only; however, such action may
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 206
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1 be brought against the insurer alone only when at least one of the following applies:
2 (a) The insured has been adjudged bankrupt by a court of competent
3 jurisdiction or when proceedings to adjudge an insured bankrupt have been
4 commenced before a court of competent jurisdiction.
5 (b) The insured is insolvent.
6 (c) Service of citation or other process cannot be made on the insured.
7 (d) When the cause of action is for damages as a result of an offense or
8 quasi-offense between children and their parents or between married persons.
9 (e) When the insurer is an uninsured motorist carrier.
10 (f) The insured is deceased.
11 (g) The insured is a small business employing fifty or fewer full-time
12 employees.
13 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Julie J. Baxter.
DIGEST
SB 206 Engrossed 2015 Regular Session Nevers
Present law provides that no policy or contract of liability insurance shall be issued or
delivered in this state, unless it contains provisions to the effect that the insolvency or
bankruptcy of the insured shall not release the insurer from the payment of damages for
injuries sustained or loss occasioned during the existence of the policy, and any judgment
which may be rendered against the insured for which the insurer is liable which shall have
become executory, shall be deemed prima facie evidence of the insolvency of the insured,
and an action may thereafter be maintained within the terms and limits of the policy by the
injured person, or his survivors, mentioned in Civil Code Art. 2315.1, or heirs against the
insurer.
Present law further provides that the injured person or his survivors or heirs mentioned in
present law, at their option, shall have a right of direct action against the insurer within the
terms and limits of the policy; and, such action may be brought against the insurer alone, or
against both the insured and insurer jointly and in solido, in the parish in which the accident
or injury occurred or in the parish in which an action could be brought against either the
insured or the insurer under the general rules of venue prescribed by Code of Civil Procedure
Art. 42 only; however, such action may be brought against the insurer alone only when at
least one of the following applies:
(1)The insured has been adjudged bankrupt by a court of competent jurisdiction or
when proceedings to adjudge an insured bankrupt have been commenced before a
court of competent jurisdiction.
(2)The insured is insolvent.
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(3)Service of citation or other process cannot be made on the insured.
(4)When 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)When the insurer is an uninsured motorist carrier.
(6)The insured is deceased.
Proposed law retains present law and adds that an additional instance in which such action
may be brought against the insurer alone shall be when the insured is a small business
employing 50 or fewer full-time employees.
Effective August 1, 2015.
(Amends R.S. 22:1269(B)(1))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.