House Bill No. by Representative Hebert amends existing law regarding lapses in required liability insurance coverage for motor vehicles. The bill specifically modifies R.S. 22:1284.1(A) and (D) to clarify that insurers are prohibited from increasing premium rates or adding surcharges based solely on a lapse in coverage. Additionally, it ensures that such lapses cannot be the sole reason for denying an application for motor vehicle insurance or for determining insurance rates. The bill also removes the definition of "lapse in coverage" and certain exemptions previously outlined in R.S. 22:1284.1(B), which has been repealed in its entirety.

The proposed changes aim to protect policyholders from financial penalties related to lapses in insurance coverage, reinforcing the principle that insurers cannot discriminate against applicants based on their insurance history. By repealing the definition and exemptions, the bill simplifies the legal framework surrounding insurance coverage lapses, ensuring that policyholders are treated fairly regardless of their past coverage status.

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