This bill amends Louisiana's motor vehicle insurance laws, specifically R.S. 22:1284.1, to address lapses in required liability insurance coverage. It prohibits insurers from increasing premium rates or adding surcharges based solely on an insured's first lapse in coverage, provided that the lapse does not exceed ninety days. Additionally, if an insured maintains continuous coverage for five or more consecutive years after a lapse, any subsequent lapse will be treated as a first lapse for the purposes of this law. The bill also clarifies that the withdrawal of a discount for which an insured no longer qualifies will not be considered an increase in premium rates or a surcharge.

Furthermore, the bill repeals R.S. 22:1284.1(B) entirely, which previously contained provisions regarding lapses in coverage. It establishes that one or more lapses in coverage cannot be the sole reason for an insurer to deny an application for motor vehicle insurance or to determine rates for such a policy. Insurers are also prohibited from requiring coverage from another insurer based solely on a lapse in coverage. The act is set to take effect on January 1, 2026, or the day following legislative approval if vetoed by the governor.

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)
HB496 Enrolled: 22:1(A), 22:1(B)
HB496 Act 476: 22:1(A), 22:1(B)