Requires exhaustion of all other available coverage
Impact
The impact of HB 756 on state laws is significant as it alters the procedural framework for insurance claims. By mandating the exhaustion of other insurance coverages, the bill attempts to mitigate the financial burden on LIGA, which exists to provide payment for claims when insurers become insolvent. This means that there will be less reliance on state resources for claims that can be satisfied through existing policies. Critics argue that this could complicate and delay claims processing for consumers, particularly in cases where determining the applicable policies might be difficult.
Summary
House Bill 756 primarily amends provisions related to claims handled by the Louisiana Insurance Guaranty Association (LIGA). The bill imposes a requirement for individuals making claims against insurers to first exhaust all available coverage from other policies, except for their own uninsured or underinsured motorist policies. This legislative change specifically targets claims that arise from shared facts or injuries, aiming to streamline the claims process and ensure that policyholders utilize their other coverage options fully before turning to LIGA for compensation.
Sentiment
The sentiment surrounding HB 756 appears to be largely supportive among legislators, as evidenced by the unanimous vote in favor of the bill, with results showing 88 yeas and no nays. However, there are potential concerns among the public and some advocacy groups about the implications of requiring claimants to exhaust other coverages. While supporters see this bill as a necessary reform to stabilize the insurance fund, detractors may view it as a loss of consumer protections that could disadvantage those who are already facing financial hardship from an accident or loss.
Contention
Notable contention points arise from the necessity of exhausting other coverages. Critics argue that this requirement could lead to confusion and increased administrative hurdles for policyholders who may be unaware of their coverage details or rights under other policies. Additionally, there are apprehensions that this bill could result in financial challenges for individuals with limited insurance knowledge, potentially leaving them without timely access to necessary funds to cover claims. By prioritizing the financial stability of LIGA over individual policyholder interests, the bill highlights the ongoing debate over consumer rights in the insurance landscape.
In financial responsibility, further providing for availability, scope and amount of coverage, repealing provisions relating to request for lower limits of coverage, providing for offer of lower limits of coverage, repealing provisions relating to coverages in excess of required amounts and to stacking of uninsured and underinsured benefits and option to waive, providing for stacking of uninsured and underinsured benefits prohibited and further providing for notice of available benefits and limits and for availability of uninsured, underinsured, bodily injury liability and property damage coverages and mandatory deductibles.
In financial responsibility, further providing for availability, scope and amount of coverage, repealing provisions relating to request for lower limits of coverage, providing for offer of lower limits of coverage, repealing provisions relating to coverages in excess of required amounts and to stacking of uninsured and underinsured benefits and option to waive, providing for stacking of uninsured and underinsured benefits prohibited and further providing for notice of available benefits and limits and for availability of uninsured, underinsured, bodily injury liability and property damage coverages and mandatory deductibles.