Louisiana House Bill HR160

Louisiana 2022 Regular Session

• Introduced: 5/19/22
• Refer: 5/23/22
• Passed: 6/6/22

Caption

Authorizes and directs the Department of Insurance to study and make recommendations regarding the effect of mandated uninsured motorist coverage on automobile insurance rates

Impact

If the study reveals significant correlations between mandated uninsured motorist coverage and changes in insurance rates, the findings could lead to legislative revisions that affect how insurance policies are structured in Louisiana. The state currently requires certain coverage levels in automobile insurance policies but allows policyholders to reject such coverage. It's possible that any recommendations could result in adjustments to existing insurance regulations, which might help reduce or manage insurance costs for consumers while increasing protections for accident victims.

Summary

House Resolution 160, introduced by Representative Jordan, aims to authorize the Department of Insurance to study the impact of mandated uninsured motorist coverage on automobile insurance rates in Louisiana. The resolution is prompted by increasing concerns over hit-and-run accidents, which are notably prevalent in the state. By conducting this study, the Department will provide recommendations to the Louisiana Legislature that could influence future insurance policies and potentially address the financial burden faced by victims of hit-and-run incidents.

Sentiment

The sentiment around HR 160 appears to be predominantly supportive, given the bill's intention to examine the safety and financial implications relating to uninsured drivers. Advocates likely see it as a proactive measure aiming to protect citizens from the financial aftermath of accidents involving uninsured or hit-and-run drivers. There may be counterarguments from those in the insurance industry concerned about potential regulatory changes that could affect their business model; however, the overall tone seems to be one of acknowledgment of the issues faced by the state's drivers.

Contention

The primary contention surrounding HR 160 seems to center on the necessity and effectiveness of the mandated study. Some may question whether additional bureaucracy is needed to address an already well-understood issue, while others might raise concerns about how any recommended changes could impact insurance premiums and availability for Louisiana residents. Furthermore, given that Louisiana has high hit-and-run rates, the urgency of the study may be debated among stakeholders, highlighting differing views on how best to address this ongoing problem.