Louisiana House Bill HB957

Louisiana 2024 Regular Session

• Introduced: 4/2/24
• Refer: 4/3/24
• Refer: 4/24/24
• Report Pass: 5/15/24
• Engrossed: 5/21/24
• Refer: 5/22/24

Caption

Prohibits insurers and third parties from sharing driver information without the driver's consent

Impact

The bill, if enacted, will amend state laws regarding the use of personal data in insurance practices. It will limit the ability of insurance companies to use telematic data, which is increasingly relied upon for determining insurance rates based on driving behavior. Stakeholders such as consumer advocacy groups are likely to view this as a crucial step in safeguarding privacy, preventing potential misuse of sensitive information by insurers and enhancing consumer trust in the insurance system.

Summary

House Bill 957 addresses the growing concerns regarding the protection of driver's personal telematic data. The bill specifically prohibits insurers writing private passenger motor vehicle insurance and third parties from sharing or using a driver's telematic information as a rating factor without the express consent of the driver. This legislation aims to enhance privacy rights for drivers by ensuring that their data cannot be utilized without explicit permission, thereby giving individuals more control over their personal information.

Sentiment

The sentiment surrounding HB 957 appears to be largely positive, especially among advocates for privacy rights. Supporters believe that the legislation is a necessary measure to protect individual rights in a rapidly advancing technological landscape, where data privacy standards are becoming increasingly critical. However, there may be some concerns from insurance companies regarding the limitations imposed by the bill, as it could affect their ability to set rates based on driver behavior, which they deem essential for fair pricing models.

Contention

A notable point of contention in the discussions around HB 957 was the amendment that deleted the initial application of the bill to manufacturers and distributors of telematic devices. This revision indicates a focused approach on the relationship between insurers and drivers but raises questions about potential impacts on the broader digital ecosystem and the sharing of driver data in other contexts. Critics might argue that a broader scope would have provided a more comprehensive framework for data privacy.