2024 Regular Session ENROLLED
SENATE BILL NO. 499
BY SENATOR REESE
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:
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
18 unless coverage is provided therein or supplemental thereto, in not less than the
19 limits of bodily injury liability provided by the policy, under provisions filed with
20 and approved by the commissioner of insurance, for the protection of persons insured
21 thereunder who are legally entitled to recover nonpunitive damages from owners or
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1 operators of uninsured or underinsured motor vehicles because of bodily injury,
2 sickness, or disease, including death resulting therefrom; however, the coverage
3 required under this Section is not applicable when any insured named in the policy
4 either rejects coverage, selects lower limits, or selects economic-only coverage, in
5 the manner provided in Item (1)(a)(ii) of this Section. In no event shall the policy
6 limits of an uninsured motorist policy be less than the minimum liability limits
7 required under R.S. 32:900, unless economic-only coverage is selected as authorized
8 in this Section. Such coverage need not be provided in or supplemental to a renewal,
9 reinstatement, or substitute policy when the named insured has rejected the coverage
10 or selected lower limits in connection with a policy previously issued to him by the
11 same insurer or any of its affiliates. The coverage provided under pursuant to this
12 Section may exclude coverage for punitive or exemplary damages by the terms of
13 the policy or contract. Insurers may also make available, at a reduced premium, the
14 coverage provided under pursuant to this Section with an exclusion for all
15 noneconomic loss. This coverage shall be known as "economic-only" uninsured
16 motorist coverage. Noneconomic loss means any loss other than economic loss and
17 includes but is not limited to pain, suffering, inconvenience, mental anguish, and
18 other noneconomic damages otherwise recoverable under the laws of this state.
19 (ii) Such rejection, selection of lower limits, or selection of economic-only
20 coverage shall be made only on a form prescribed by the commissioner of insurance.
21 The prescribed form shall be provided by the insurer and signed by the named
22 insured or his legal representative. The form signed by the named insured or his legal
23 representative which initially rejects such the coverage, selects lower limits, or
24 selects economic-only coverage shall be conclusively presumed to become a part of
25 the policy or contract when issued and delivered, irrespective of whether physically
26 attached thereto. A properly completed and signed form creates a rebuttable
27 presumption that the insured knowingly rejected coverage, selected a lower limit, or
28 selected economic-only coverage. If the form is signed but not properly
29 completed, such that the rebuttable presumption does not apply, there shall be
30 no uninsured motorist coverage or modified uninsured motorist coverage, as
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1 applicable, if it is determined that the insured or his representative intended to
2 reject or modify the uninsured motorist coverage. The form signed by the insured
3 or his legal representative which initially rejects coverage, selects lower limits, or
4 selects economic-only coverage shall remain valid for the life of the policy and shall
5 not require the completion of a new selection form when a renewal, reinstatement,
6 substitute, or amended policy is issued to the same named insured by the same
7 insurer or any of its affiliates. An insured may change the original uninsured motorist
8 selection or rejection on a policy at any time during the life of the policy by
9 submitting a new uninsured motorist selection form to the insurer on the form
10 prescribed by the commissioner of insurance. Any changes to an existing policy,
11 regardless of whether these changes create new coverage, except changes in the
12 limits of liability, do not create a new policy and do not require the completion of
13 new uninsured motorist selection forms. For the purpose of this Section, a "new
14 policy" shall mean means an original contract of insurance which an insured enters
15 into through the completion of an application on the form required by the insurer.
16 (iii) This Subparagraph and its requirement for uninsured motorist coverage
17 shall apply to any liability insurance covering any accident which occurs in this state
18 and involves a resident of this state.
19 (iv) Notwithstanding any contrary provision of this Section and R.S. 22:1406
20 [Repealed], an automobile liability policy written to provide coverage for a school
21 bus may limit the scope of uninsured motorist liability to only provide liability
22 coverage for damages incurred by reason of an accident or incident involving the
23 school bus, or a temporary substitute vehicle, and such limitation shall limit the
24 uninsured motorist coverage of a named insured in the policy to only damages
25 incurred by reason of such accident or incident.
26 * * *
27 (e) The uninsured motorist coverage does not apply to bodily injury, sickness,
28 or disease, including the resulting death of an insured, while occupying a motor
29 vehicle owned by the insured if such the motor vehicle is not described in the policy
30 under which a claim is made, or is not a newly acquired or replacement motor
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1 vehicle covered under the terms of the policy. This provision shall not apply to
2 uninsured motorist coverage provided in a policy that does not describe specific
3 motor vehicles.
4 * * *
5 (4) In the event of payment to any person under the coverage required by this
6 Section and subject to the terms and conditions of such the coverage, the insurer
7 making such the payment shall, to the extent thereof, be entitled to the proceeds of
8 any settlement or judgment resulting from the exercise of any rights of recovery of
9 such the person against any person or organization legally responsible for the bodily
10 injury for which such the payment is made, including the proceeds recoverable from
11 the assets of the insolvent insurer.
12 (5) The coverage required under by this Section may include provisions for
13 the submission of claims by the assured insured to arbitration; arbitration.
14 however, the The submission to arbitration shall be optional with the insured,
15 insured and shall not deprive the insured of his right to bring action against the
16 insurer to recover any sums due to him under the terms of the policy, and shall not
17 purport to deprive the courts of this state of jurisdiction of actions against the insurer
18 pursuant to R.S. 22:868.
19 * * *
20 (7) Notwithstanding the provisions of Paragraph (1) of this Section, for
21 commercial automobile insurance policies, the insured shall have the option of
22 selecting uninsured motorist coverage on a form promulgated by the
23 commissioner. If there is no selection of uninsured motorist coverage on the
24 form provided to the insured and no payment of premium that includes this
25 coverage, then it shall be presumed that no uninsured motorist coverage was
26 selected for that policy or contract, and the provisions of this Section shall not
27 apply.
28 * * *
29 §1296. Coverage of temporary, substitute, and rental vehicles
30 * * *
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1 B. A rental company, as defined in R.S. 22:1762(5), shall maintain security
2 on all rental vehicles meeting the requirements of the Motor Vehicle Safety
3 Responsibility Law, R.S. 32:851 et seq., as follows:
4 * * *
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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