House Bill No. 496 aims to amend existing laws regarding lapses in required liability insurance coverage for motor vehicles. The bill prohibits insurers from increasing premium rates or adding surcharges based solely on an insured's first lapse in coverage. However, it allows for increased rates or surcharges for any subsequent lapses. Additionally, if an insured maintains continuous coverage for five or more consecutive years after a lapse, the insurer must treat any first subsequent lapse as a first-time lapse. The bill also clarifies that the withdrawal of a discount due to an insured no longer qualifying does not count as a premium increase or surcharge.

Furthermore, the bill retains provisions that prevent insurers from denying applications for insurance solely based on a lapse in coverage and prohibits requiring insured individuals to seek coverage from another insurer due to such lapses. The legislation repeals certain exemptions related to these provisions, streamlining the regulations surrounding motor vehicle insurance and lapses in coverage. Overall, the bill seeks to provide more favorable conditions for insured individuals while maintaining necessary protections for insurers.

Statutes affected:
HB496 Original: 22:1(A), 22:1(B)
HB496 Engrossed: 22:1(A), 22:1(B)
HB496 Reengrossed: 22:1(A), 22:1(B)