Urges and requests the Dept. of Insurance and the La. Used Motor Vehicle Commission to jointly study whether there is a need for mandated contingent liability coverage for rental dealers and whether an adequate market for such insurance exists in this state
By addressing the requirements for contingent liability coverage, HR115 could lead to changes in Louisiana's insurance regulations for rental dealers. The resolution highlights existing disparities between rental dealers and motor vehicle lessors, suggesting that the current framework should be reassessed to ensure that rental dealers have access to affordable and adequate insurance options. A favorable outcome from the study may facilitate policy adjustments that enhance the insurance market for these businesses, promoting their sustainability and potentially benefiting consumers.
House Resolution 115 urges the Louisiana Department of Insurance and the Louisiana Used Motor Vehicle Commission to conduct a study regarding the necessity of mandated contingent liability coverage for rental dealers. The resolution seeks to determine whether the current insurance market can adequately meet the needs of these dealers, especially given the rising costs of such policies. It is a response to concerns that rental dealers are facing prohibitive expenses related to required insurance coverage under state law, which mandates specific minimum coverage amounts.
The general sentiment around HR115 appears to be supportive, particularly from within the rental vehicle industry. Stakeholders believe that the mandated coverage requirements have become burdensome and are advocating for a reevaluation of these regulations. However, there may also be concerns about the broader implications of changing insurance requirements, including any potential risks to consumers and the accountability of rental dealers under adjusted liability standards.
An important point of contention related to HR115 revolves around the implications of federally mandated regulations, such as the Graves Amendment, which removed vicarious liability for rental vehicle companies under certain conditions. The resolution suggests that Louisiana’s state laws may need a comprehensive review in light of these federal provisions. This dynamic could raise questions about how state and federal regulations interact and affect local businesses, as well as on the adequacy of consumer protections.