Requires insurers provide coverage for the temporary use of a motor vehicle not owned by the insured. (8/1/22)
Impact
The enactment of SB 117 is expected to enhance the clarity of liability coverage relating to the negligent operation of non-owned vehicles. It establishes that coverage for individuals driving such vehicles will be secondary to any insurance the vehicle's owner has, thereby delineating responsibilities in case of an accident. This could provide greater assurance for drivers who occasionally use vehicles owned by others, thus ideally reducing conflicts in liability claims.
Summary
Senate Bill 117, introduced by Senator Luneau, aims to amend existing automobile insurance regulations in Louisiana by providing coverage for individuals operating a vehicle not owned by them under specific conditions. The bill ensures that certain types of insurance coverage—such as liability, uninsured, underinsured, or medical payments—will apply to the insured when they are legally permitted to operate a non-owned vehicle, as long as the vehicle is not regularly available to the insured. This legislative change is particularly relevant following a Louisiana Supreme Court decision which highlighted a gap in current laws pertaining to such situations.
Sentiment
The overall sentiment surrounding SB 117 appears to be positive, especially among supporters who see it as a necessary update to ensure comprehensive coverage in line with modern driving habits. There are likely nuanced views among various stakeholders, including insurance providers who may need to adjust their policies to align with the new regulations. However, specific sentiments from public segments or opposition were not captured in the available discussions.
Contention
Notable points of contention may arise regarding the implications of the bill for existing insurance practices and potential adjustments required by insurance companies. While the bill offers protections for insured individuals, questions about the extent to which insurers might need to alter current policies, documentation, and claim handling processes could spur discussions in legislative sessions. Additionally, while the bill aims to improve clarity and coverage for users of non-owned vehicles, there is the potential for consumer confusion regarding the specifics of their policy coverage under this new framework.
Prohibits automobile insurance policies from disclaiming uninsured or underinsured motorist coverage based on use of motor vehicle owned by insured's employer.