2023 Regular Session ENROLLED
SENATE CONCURRENT RESOL UTION NO. 19
BY SENATOR TALBOT AND REPRESENTATIVES GAROFALO AND KNOX
A CONCURRENT RESOL UTION
To create the Task Force on Available and Affordable Commercial Motor Vehicle Insurance
to study and report on the impediments to obtaining affordable commercial motor
vehicle insurance in Louisiana, the approaches taken by other states to reduce
commercial motor vehicle insurance premiums, and to provide recommendations to
the legislature on methods for increasing the availability and affordability of
commercial motor vehicle insurance in Louisiana.
WHEREAS, according to the American Transportation Research Institute, for four
years nationwide, the affordability and availability of commercial motor vehicle insurance
has been a top issue in truck transportation; and
WHEREAS, Louisiana ranks as the second most expensive state for commercial
motor vehicle insurance in the nation; and
WHEREAS, Louisiana trucking companies and owner-operators continue to struggle
to pay for commercial motor vehicle insurance; and
WHEREAS, Louisiana pays up to four times more than other states for commercial
motor vehicle insurance; and
WHEREAS, small fleets in Louisiana, which consist of more than ninety-four
percent of all commercial trucking companies, pay up to four times more for commercial
motor vehicle insurance; and
WHEREAS, the situation has deteriorated to an extent where the vast majority of
commercial motor vehicle insurance companies refuse to write policies in Louisiana, further
exacerbating issues related to affordability and availability; and
WHEREAS, the lack of competition negatively affects commercial motor vehicle
insurance rates and potentially negatively affects the number of trucking companies
registered in Louisiana; and
WHEREAS, decreased registered trucking companies in Louisiana may result in
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increased costs of consumer goods and render Louisiana less economically competitive; and
WHEREAS, reducing the amount of revenue collected from various sources,
including corporate income taxes, gasoline tax, motor vehicles sales tax, titling fees, and
automobile plate fees, increases the potential for a negative economic impact on the state of
Louisiana; and
WHEREAS, other states, including Texas, Iowa, and Florida, have recently acted to
considerably lower commercial motor vehicle insurance rates and therefore provide more
economically competitive options to commercial motor vehicle carriers; and
WHEREAS, alternative insurance options have proven effective in similar
circumstances and in other states; and
WHEREAS, the legislature desires to form a task force to study available and
affordable commercial motor vehicle insurance and to provide a forum to present its
findings; and
WHEREAS, considering that increased competition among commercial motor
vehicle insurance companies in Louisiana should lower rates, the legislature would be
further assisted by recommendations on methods to increase the number of commercial
motor vehicle insurers offering commercial motor vehicle insurance policies in
Louisiana; and
WHEREAS, considering that Louisiana generates revenue from commercial motor
vehicles registered in the state, the legislature would be additionally assisted by
quantification of tax revenue per commercial vehicle unit and per trucking company to
assess monetary impact.
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
establish and provide for the Task Force on Available and Affordable Commercial Motor
Vehicle Insurance to study, review, and report on the following:
(1) Impediments to obtaining affordable commercial motor vehicle insurance in
Louisiana.
(2) Approaches taken by other states to reduce commercial motor vehicle insurance
premiums.
(3) Economic impact of commercial motor vehicle insurance affordability on state
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revenue.
(4) The structure and regulation of commercial motor vehicle companies and drivers
in this state.
(5) The safety records of commercial motor vehicle companies in this state.
(6) The qualifications of commercial motor vehicle drivers in this state including but
not limited to the ability to take verbal tests in Louisiana.
BE IT FURTHER RESOLVED that the task force should include consideration of
recommendations, together with specific proposals for legislation on methods for increasing
the number of commercial motor vehicle insurers offering commercial motor vehicle
insurance policies in Louisiana and the affordability of commercial motor vehicle insurance
premiums, by written report to the legislature and to the David R. Poynter Legislative
Research Library as required by R.S. 24:771 and 772, no later than March 1, 2024.
BE IT FURTHER RESOLVED that the task force shall consist of the following
members:
(1) The commissioner of insurance or his designee who shall serve as chairman.
(2) The chairman of the Senate Committee on Insurance or his designee.
(3) The chairman of the House Committee on Insurance or his designee.
(4) The governor of the state of Louisiana or his designee.
(5) The chief executive officer of the Consumer Federation of America or his
designee.
(6) The chairman of the Louisiana Property and Casualty Insurance Commission or
his designee.
(7) The president of the Independent Insurance Agents & Brokers of Louisiana or his
designee.
(8) The president of the Professional Insurance Agents of Louisiana or his designee.
(9) A chairman of the Louisiana Association for Justice or his designee.
(10) The executive director of the Louisiana Coalition for Common Sense.
(11) The chief executive officer of Louisiana Farm Bureau Insurance or his designee.
(12) The chairman of the American Property Casualty Insurance Association
(APCIA) or his designee.
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(13) The chairman of the Louisiana Motor Transport Association or his designee.
(14) A representative of the Louisiana Loggers Association.
(15) The chairman of the National Association of Mutual Insurance Companies
(NAMIC) or his designee.
(16) The secretary of the Department of Public Safety and Corrections or his
designee.
(17) The secretary of the Department of Transportation and Development or his
designee.
BE IT FURTHER RESOLVED, that any designee organization that qualifies as or
holds itself out as a nonprofit organization must have timely and fully complied with all
United States Internal Revenue Service filing requirements in order to participate in task
force proceedings.
BE IT FURTHER RESOLVED that the names of the members designated by this
Resolution be submitted to the commissioner of insurance no later than June 30, 2023.
BE IT FURTHER RESOLVED that a vacancy in the membership shall be filled in
the same manner as the original appointment.
BE IT FURTHER RESOLVED that the members of the task force shall serve
without compensation, except per diem or expenses reimbursement to which they may be
individually entitled as members of their constituent organizations.
BE IT FURTHER RESOLVED that a majority of the task force shall constitute a
quorum for the transaction of business and all official actions of the task force shall require
the affirmative vote of a majority of the quorum.
BE IT FURTHER RESOLVED that the commissioner of insurance shall call the first
meeting of the task force, which shall be held no later than July 31, 2023, at which time the
task force shall select a vice chairman and other officers deemed necessary from among its
membership, and shall adopt rules of procedure and any additional measures that the task
force deems necessary for the timely performance of its duties.
BE IT FURTHER RESOLVED that the commissioner of insurance shall designate
staff from the Department of Insurance to assist the task force in the performance of its
duties.
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BE IT FURTHER RESOLVED that the task force shall be domiciled in Baton Rouge
but may hold meetings elsewhere in the state.
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
Louisiana Department of Insurance, the governor of the state of Louisiana, the Consumer
Federation of America, the Louisiana Property and Casualty Insurance Commission, the
Independent Insurance Agents & Brokers of Louisiana, the Professional Insurance Agents
of Louisiana, the Louisiana Association for Justice, the Louisiana Coalition for Common
Sense, Louisiana Farm Bureau Insurance, the American Property Casualty Insurance
Association, the Louisiana Motor Transport Association, the Louisiana Loggers Association,
the National Association of Mutual Insurance Companies, the Department of Public Safety
and Corrections, and the Department of Transportation and Development.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
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