This bill amends existing Louisiana law regarding lapses in required liability insurance coverage for motor vehicles. 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 the definition of a "lapse in coverage" and states that the withdrawal of a discount for which an insured no longer qualifies will not be considered an increase in premium rates.

Furthermore, the bill repeals a section of the law that previously allowed lapses in coverage to be considered when determining rates for motor vehicle insurance policies. It ensures that one or more lapses in coverage cannot be the sole reason for an insurer to deny an application for a policy. The changes aim to provide more protection for insured individuals and promote continuous coverage without penalizing them for minor lapses. The bill is set to take effect on January 1, 2026, unless vetoed by the governor and subsequently approved by the legislature.

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)