HLS 182ES-34 ORIGINAL
2018 Second Extraordinary Session
HOUSE RESOLUTION NO. 41
BY REPRESENTATIVE NORTON
INSURANCE/AUTOMOBILE: Urges and requests the office of motor vehicles create a
task force to study and report on the high automobile insurance rates in the state
1 A RESOLUTION
2To urge and request the Department of Public Safety, office of motor vehicles, to assemble
3 a task force to investigate the reasons for the high automobile insurance rates in
4 Louisiana and submit a report with findings and recommendations to the House of
5 Representatives and the Senate no later than March 1, 2019.
6 WHEREAS, the subject and availability of automobile insurance is of great interest
7and importance to the people and businesses of this state; and
8 WHEREAS, Louisiana is the second most expensive state for automobile insurance
9in the nation and the average automobile insurance annual premium in 2017 for a Louisiana
10resident was close to two thousand dollars; and
11 WHEREAS, in 2010, 2012, and 2013, Louisiana had the highest automobile
12insurance rates in the nation, but then dropped down to fourth place in subsequent years; and
13 WHEREAS, Louisiana is now back up to second place, with an average annual
14premium of one thousand nine hundred twenty-one dollars, which is forty-six percent higher
15than the national average; and
16 WHEREAS, last year double-digit premium increases for at least five insurers, the
17highest of which was almost twenty-two percent, were approved by the Department of
18Insurance and either took effect in late 2017 or will become effective in 2018; and
19 WHEREAS, forty percent of Louisiana drivers get by with the minimum allowable
20coverage and most cannot afford to buy a better option; and
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HR NO. 41
1 WHEREAS, in the past two years, five companies have left the state due to the
2unprofitability of the automobile insurance industry in Louisiana; and
3 WHEREAS, major metropolitan areas, such as Shreveport, New Orleans, and Baton
4Rouge, have considerably higher automobile insurance rates than other less populated areas
5in the state; and
6 WHEREAS, in the past there have been several bills introduced in this legislature
7which sought to lower insurance rates by proposing various plans to either overhaul the
8entire automobile insurance system or to make specific changes in the current system.
9 THEREFORE, BE IT RESOLVED that the House of Representatives of the
10Legislature of Louisiana does hereby urge and request the Department of Public Safety,
11office of motor vehicles, to assemble a task force to investigate the reasons for the high
12automobile insurance rates in Louisiana.
13 BE IT FURTHER RESOLVED that the task force shall submit a report of its
14findings and recommendations including any proposed legislation to the House and Senate
15Committees on Transportation, Highways, and Public Works no later than March 1, 2019.
16 BE IT FURTHER RESOLVED that the task force shall study and address in the
17report required by this Resolution all of the following:
18 (1) The reasons forming the basis for Louisiana's status as the state with the second
19highest automobile insurance rates in the nation.
20 (2) The frequency of automobile insurance premium increases approved by the
21Department of Insurance in the last three years and the reasons why the increases were
22necessary.
23 (3) The reasons why certain areas in the state have significantly higher insurance
24rates as compared to other areas of the state.
25 BE IT FURTHER RESOLVED that the task force shall be composed of the
26following:
27 (1) The commissioner of the Department of Public Safety, office of motor vehicles,
28or his designee.
29 (2) Two state representatives, appointed by the Speaker of the House of
30Representatives.
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HR NO. 41
1 (3) A representative from the Louisiana Highway Safety Commission.
2 (4) A representative from the office of the attorney general consumer protection
3section.
4 (5) A representative from the American Association of Retired Persons, otherwise
5known as AARP.
6 (6) A representative from the American Automobile Association, otherwise known
7as AAA.
8 (7) Two residents of the state of Louisiana, one from North Louisiana and one from
9South Louisiana, selected by the commissioner of the Department of Public Safety, office
10of motor vehicles, from a list of names submitted by the other members of this task force.
11 BE IT FURTHER RESOLVED that the task force is assigned to the Department of
12Public Safety, office of motor vehicles, with staff support to be provided from existing
13personnel within the department.
14 BE IT FURTHER RESOLVED that, at the first meeting of the task force, the
15members shall elect a chairman, vice chairman, and other officers as the members deem
16appropriate.
17 BE IT FURTHER RESOLVED that nonlegislative members of the task force shall
18serve without compensation or reimbursement of expenses, other than that to which they
19may be individually entitled by their respective employer organizations. Legislative
20members of the task force shall receive the same per diem and reimbursement of travel
21expenses as is provided for legislative committee meetings pursuant to the rules of the
22respective house in which they serve.
23 BE IT FURTHER RESOLVED that the task force may conduct meetings at such
24places and at such times necessary or convenient to enable it to exercise fully and effectively
25its powers, perform its duties, and accomplish the objectives and purposes of this Resolution.
26 BE IT FURTHER RESOLVED that the legislative authority for the task force shall
27terminate on December 31, 2019.
28 BE IT FURTHER RESOLVED that the commissioner of the Department of Public
29Safety, office of motor vehicles, or his designee shall convene the task force for its first
30meeting no later than August 16, 2018.
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HR NO. 41
1 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
2commissioner of the Department of Public Safety, office of motor vehicles.
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)]
HR 41 Original 2018 Second Extraordinary Session Norton
Requests the Dept. of Public Safety, office of motor vehicles, assemble a task force to
investigate the high automobile insurance rates in La. and submit a report with findings and
recommendations to the House of Representatives and the Senate by March 1, 2019.
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