SLS 24RS-697 REENGROSSED
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 the introductory paragraph of R.S. 22:1295 and R.S. 22:1295(1)(a)
3 and (e), (4), and (5) and the introductory paragraph of 1296(B) and to enact R.S.
4 22:1295(7), relative to uninsured motorist coverage; to provide for uninsured
5 motorist coverage; to provide an exception to uninsured motorist coverage; to make
6 technical changes; and to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. The introductory paragraph of R.S. 22:1295, and R.S. 22:1295(1)(a) and
9 (e), (4), and (5) and the introductory paragraph of 1296(B) are hereby amended and
10 reenacted and R.S. 22:1295(7) is hereby enacted to read as follows:
11 §1295. Uninsured motorist coverage
12 The following provisions shall govern the issuance of uninsured motorist
13 coverage in this state except for under commercial automobile insurance policies:
14 (1)(a)(i) No automobile liability insurance covering liability arising out of the
15 ownership, maintenance, or use of any motor vehicle shall be delivered or issued for
16 delivery in this state with respect to any motor vehicle designed for use on public
17 highways and required to be registered in this state or as provided in this Section
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1 unless coverage is provided therein or supplemental thereto, in not less than the
2 limits of bodily injury liability provided by the policy, under provisions filed with
3 and approved by the commissioner of insurance, for the protection of persons insured
4 thereunder who are legally entitled to recover nonpunitive damages from owners or
5 operators of uninsured or underinsured motor vehicles because of bodily injury,
6 sickness, or disease, including death resulting therefrom; however, the coverage
7 required under this Section is not applicable when any insured named in the policy
8 either rejects coverage, selects lower limits, or selects economic-only coverage, in
9 the manner provided in Item (1)(a)(ii) of this Section.
10 (ii) Such rejection, selection of lower limits, or selection of economic-only
11 coverage shall be made only on a form prescribed by the commissioner of insurance.
12 The prescribed form shall be provided by the insurer and signed by the named
13 insured or his legal representative. The form signed by the named insured or his legal
14 representative which initially rejects such the coverage, selects lower limits, or
15 selects economic-only coverage shall be conclusively presumed to become a part of
16 the policy or contract when issued and delivered, irrespective of whether physically
17 attached thereto. A properly completed and signed form creates a rebuttable
18 presumption that the insured knowingly rejected coverage, selected a lower limit, or
19 selected economic-only coverage. In the event the form is not properly completed
20 and signed so that this rebuttable presumption does not apply then there shall
21 be no coverage or modified coverage, as applicable, if it is determined that the
22 insured or his legal representative intended to reject or modify the uninsured
23 coverage. The form signed by the insured or his legal representative which initially
24 rejects coverage, selects lower limits, or selects economic-only coverage shall
25 remain valid for the life of the policy and shall not require the completion of a new
26 selection form when a renewal, reinstatement, substitute, or amended policy is issued
27 to the same named insured by the same insurer or any of its affiliates. An insured
28 may change the original uninsured motorist selection or rejection on a policy at any
29 time during the life of the policy by submitting a new uninsured motorist selection
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1 form to the insurer on the form prescribed by the commissioner of insurance. Any
2 changes to an existing policy, regardless of whether these changes create new
3 coverage, except changes in the limits of liability, do not create a new policy and do
4 not require the completion of new uninsured motorist selection forms. For the
5 purpose of this Section, a new policy shall mean an original contract of insurance
6 which an insured enters into through the completion of an application on the form
7 required by the insurer.
8 (iii) This Subparagraph and its requirement for uninsured motorist coverage
9 shall apply to any liability insurance covering any accident which occurs in this state
10 and involves a resident of this state.
11 (iv) Notwithstanding any contrary provision of this Section and R.S. 22:1406
12 [Repealed], an automobile liability policy written to provide coverage for a school
13 bus may limit the scope of uninsured motorist liability to only provide liability
14 coverage for damages incurred by reason of an accident or incident involving the
15 school bus, or a temporary substitute vehicle, and such limitation shall limit the
16 uninsured motorist coverage of a named insured in the policy to only damages
17 incurred by reason of such accident or incident.
18 * * *
19 (e) The uninsured motorist coverage does not apply to bodily injury, sickness,
20 or disease, including the resulting death of an insured, while occupying a motor
21 vehicle owned by the insured if such the motor vehicle is not described in the policy
22 under which a claim is made, or is not a newly acquired or replacement motor
23 vehicle covered under the terms of the policy. This provision shall not apply to
24 uninsured motorist coverage provided in a policy that does not describe specific
25 motor vehicles.
26 * * *
27 (4) In the event of payment to any person under the coverage required by this
28 Section and subject to the terms and conditions of such the coverage, the insurer
29 making such the payment shall, to the extent thereof, be entitled to the proceeds of
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1 any settlement or judgment resulting from the exercise of any rights of recovery of
2 such the person against any person or organization legally responsible for the bodily
3 injury for which such the payment is made, including the proceeds recoverable from
4 the assets of the insolvent insurer.
5 (5) The coverage required under this Section may include provisions for the
6 submission of claims by the assured insured to arbitration; arbitration. however,
7 the The submission to arbitration shall be optional with the insured, insured and
8 shall not deprive the insured of his right to bring action against the insurer to recover
9 any sums due him under the terms of the policy, and shall not purport to deprive the
10 courts of this state of jurisdiction of actions against the insurer pursuant to R.S.
11 22:868.
12 * * *
13 (7) For commercial automobile insurance policies the insured shall have
14 the option of selecting uninsured motorist coverage on a form promulgated by
15 the commissioner. If there is no selection of uninsured motorist coverage on the
16 form provided to the insured and no payment of premium that includes this
17 coverage, then it shall be presumed that no uninsured motorist coverage was
18 selected for that policy or contract and the provisions of this Section shall not
19 apply.
20 * * *
21 §1296. Coverage of temporary, substitute, and rental vehicles
22 * * *
23 B. A rental company, as defined in R.S. 22:1762(5), shall maintain security
24 on all rental vehicles meeting the requirements of the Motor Vehicle Safety
25 Responsibility Law, R.S. 32:851 et seq., as follows:
26 * * *
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Beth O'Quin.
DIGEST
SB 499 Reengrossed 2024 Regular Session Reese
Present law requires an insurer to automatically provide uninsured motorist liability
coverage unless the insured rejects the coverage.
Proposed law retains present law but excepts commercial automobile insurance from the
uninsured motorist requirement.
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 provides that if the form is not properly completed and signed to create a
rebuttable presumption that the insured knowingly rejected coverage, there shall be no
coverage or modified coverage, in applicable, if it is determined that the insured intended
to reject or modify the uninsured coverage.
Present law provides uninsured motorist physical damage coverage.
Proposed law retains 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 retains 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 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 retains present law.
Effective August 1, 2024.
(Amends R.S. 22:1295(intro para), 1295(1)(a) and (e), (4), and (5) and 1296(B)(intro para);
adds R.S. 22:1295(7))
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.
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3. Remove uninsured motorist requirements when the named insured selects
lower limits in connection with a policy previously issued to him.
Senate Floor Amendments to engrossed bill
1. Make technical changes.
2. Change proposed law uninsured motorist requirements from if elected to a
rebuttable presumption of declining coverage for personal automobile
insurance.
3. Excepts commercial automobile insurance policies from the uninsured
motorist requirements.
4. Restores present law regarding uninsured motorist coverage.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.