SLS 24RS-697 ENGROSSED 2024 Regular Session SENATE BILL NO. 499 BY SENATOR REESE INSURANCE POLICIES. Provides for uninsured and underinsured motorist insurance. (8/1/24) 1 AN ACT 2 To amend and reenact R.S. 22:1295(1)(a) and (e), (4), and (5) and the introductory 3 paragraph of 1296(B) and to repeal R.S. 22:1295(1)(d) and 1296(B)(4), relative to 4 uninsured motorist coverage; to provide for uninsured motorist coverage; to repeal 5 a selection form; to repeal a certain coverage; to repeal an exception; to make 6 technical changes; and to provide for related matters. 7 Be it enacted by the Legislature of Louisiana: 8 Section 1. R.S. 22:1295(1)(a) and (e), (4), and (5) and the introductory paragraph of 9 1296(B) are hereby amended and reenacted to read as follows: 10 §1295. Uninsured motorist coverage 11 The following provisions shall govern the issuance of uninsured motorist 12 coverage in this state: 13 (1)(a)(i) No automobile liability insurance covering liability arising out of the 14 ownership, maintenance, or use of any motor vehicle shall be delivered or issued for 15 delivery in this state with respect to any motor vehicle designed for use on public 16 highways and required to be registered in this state or as provided in this Section 17 unless coverage is provided therein or supplemental thereto, in not less than the Page 1 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 499 SLS 24RS-697 ENGROSSED 1 limits of bodily injury liability provided by the policy, under provisions filed with 2 and approved by the commissioner of insurance, for the protection of persons insured 3 thereunder who are legally entitled to recover nonpunitive damages from owners or 4 operators of uninsured or underinsured motor vehicles because of bodily injury, 5 sickness, or disease, including death resulting therefrom; however, the coverage 6 required under this Section is not applicable when any insured named in the policy 7 either rejects coverage, selects lower limits, or selects economic-only coverage, in 8 the manner provided in Item (1)(a)(ii) of this Section. In Uninsured or 9 underinsured motorist coverage provides protection for persons who are legally 10 entitled to recover nonpunitive damages from owners or operators of uninsured 11 or underinsured motor vehicles because of bodily injury, sickness, or disease or 12 death resulting from the accident. The coverage, if elected, shall in no event shall 13 the policy limits of an uninsured motorist policy be less than the minimum liability 14 limits required under R.S. 32:900, unless the insured chose an economic-only 15 uninsured motorist coverage. is selected as authorized in this Section. Such 16 coverage need not be provided in or supplemental to a renewal, reinstatement, or 17 substitute policy when the named insured has rejected the coverage or selected lower 18 limits in connection with a policy previously issued to him by the same insurer or 19 any of its affiliates. The coverage provided under in accordance with this Section 20 may exclude coverage for punitive or exemplary damages by the terms of the policy 21 or contract. Insurers may also make available, at a reduced premium, the coverage 22 provided under this Section with an exclusion for all noneconomic loss. This 23 coverage shall be known as "economic-only" uninsured motorist coverage. 24 Noneconomic loss means any loss other than economic loss and includes but is not 25 limited to pain, suffering, inconvenience, mental anguish, and other noneconomic 26 damages otherwise recoverable under the laws of this state. 27 (ii) Such rejection, selection of lower limits, or selection of economic-only 28 coverage shall be made only on a form prescribed by the commissioner of insurance. 29 The prescribed form shall be provided by the insurer and signed by the named Page 2 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 499 SLS 24RS-697 ENGROSSED 1 insured or his legal representative. The form signed by the named insured or his legal 2 representative which initially rejects such coverage, selects lower limits, or selects 3 economic-only coverage shall be conclusively presumed to become a part of the 4 policy or contract when issued and delivered, irrespective of whether physically 5 attached thereto. A properly completed and signed form creates a rebuttable 6 presumption that the insured knowingly rejected coverage, selected a lower limit, or 7 selected economic-only coverage. The form signed by the insured or his legal 8 representative which initially rejects coverage, selects lower limits, or selects 9 economic-only coverage shall remain valid for the life of the policy and shall not 10 require the completion of a new selection form when a renewal, reinstatement, 11 substitute, or amended policy is issued to the same named insured by the same 12 insurer or any of its affiliates. An insured may change the original uninsured motorist 13 selection or rejection on a policy at any time during the life of the policy by 14 submitting a new uninsured motorist selection form to the insurer on the form 15 prescribed by the commissioner of insurance. Any changes to an existing policy, 16 regardless of whether these changes create new coverage, except changes in the 17 limits of liability, do not create a new policy and do not require the completion of 18 new uninsured motorist selection forms. For the purpose of this Section, a new 19 policy shall mean an original contract of insurance which an insured enters into 20 through the completion of an application on the form required by the insurer. 21 (iii) This Subparagraph and its requirement for uninsured motorist coverage 22 shall apply to any liability insurance covering any accident which occurs in this state 23 and involves a resident of this state. 24 (iv) Notwithstanding any contrary provision of this Section and R.S. 22:1406, 25 an automobile liability policy written to provide coverage for a school bus may limit 26 the scope of uninsured motorist liability to only provide liability coverage for 27 damages incurred by reason of an accident or incident involving the school bus, or 28 a temporary substitute vehicle, and such limitation shall limit the uninsured motorist 29 coverage of a named insured in the policy to only damages incurred by reason of Page 3 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 499 SLS 24RS-697 ENGROSSED 1 such accident or incident. 2 * * * 3 (e) The uninsured motorist coverage does not apply to bodily injury, sickness, 4 or disease, including the resulting death of an insured, while occupying a motor 5 vehicle owned by the insured if such the motor vehicle is not described in the policy 6 under which a claim is made, or is not a newly acquired or replacement motor 7 vehicle covered under the terms of the policy. This provision shall not apply to 8 uninsured motorist coverage provided in a policy that does not describe specific 9 motor vehicles. 10 * * * 11 (4) In the event of payment to any person under the coverage required by this 12 Section and subject to the terms and conditions of such the coverage, the insurer 13 making such the payment shall, to the extent thereof, be entitled to the proceeds of 14 any settlement or judgment resulting from the exercise of any rights of recovery of 15 such the person against any person or organization legally responsible for the bodily 16 injury for which such the payment is made, including the proceeds recoverable from 17 the assets of the insolvent insurer. 18 (5) The coverage required under this Section may include provisions for the 19 submission of claims by the assured insured to arbitration; arbitration. however, 20 the The submission to arbitration shall be optional with the insured, insured and 21 shall not deprive the insured of his right to bring action against the insurer to recover 22 any sums due him under the terms of the policy, and shall not purport to deprive the 23 courts of this state of jurisdiction of actions against the insurer pursuant to R.S. 24 22:868. 25 * * * 26 §1296. Coverage of temporary, substitute, and rental vehicles 27 * * * 28 B. A rental company, as defined in R.S. 22:1762(5), shall maintain security 29 on all rental vehicles meeting the requirements of the Motor Vehicle Safety Page 4 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 499 SLS 24RS-697 ENGROSSED 1 Responsibility Law, R.S. 32:851 et seq., as follows: 2 * * * 3 Section 2. R.S. 22:1295(1)(d) and 1294(B)(4) are hereby repealed. The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Beth O'Quin. DIGEST SB 499 Engrossed 2024 Regular Session Reese Present law requires an insurer to automatically provide uninsured motorist liability coverage unless the insured rejects the coverage. Proposed law changes uninsured motorist coverage from being automatically provided to a coverage an insured may select if the insurer offers uninsured motorist liability coverage. Present law requires the commissioner to create a form for uninsured motorist coverage. Present law provides that if the insured or his legal representative does not reject or select uninsured motorist coverage, the named insured is automatically covered for uninsured motorist coverage. Present law removes uninsured motorist requirements when the named insured selects lower limits in connection with a policy previously issued to him. Proposed law repeals present law. Present law provides uninsured motorist physical damage coverage. Proposed law repeals present law. Present law provides an automobile liability policy written to provide coverage for a school bus may limit the scope of uninsured motorist coverage. Proposed law repeals present law. Present law requires insurers to offer uninsured motorist coverage and authorizes the insurer to offer an optional arbitration provision. Present law provides the courts cannot be deprived of their jurisdiction pursuant to present law. Proposed law retains present law but removes that insurers are required to offer uninsured motorist coverage. Proposed law makes technical changes. Present law provides a rental company may be exempt from the requirement that they must offer uninsured motorist coverage which is required to be offered under present law. Proposed law repeals present law. Effective August 1, 2024. (Amends R.S. 22:1295(1)(a) and (e), (4), and (5) and 1296(B)(intro para); repeals R.S. 22:1295(1)(d) and 1296(B)(4)) Page 5 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 499 SLS 24RS-697 ENGROSSED Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Insurance to the original bill 1. Make technical changes. 2. Change the uninsured motorist requirement from shall to if elected. 3. Remove uninsured motorist requirements when the named insured selects lower limits in connection with a policy previously issued to him. Page 6 of 6 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.