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LA HB496

Bill

Status

Passed

6/20/2025

Primary Sponsor

Troy Hebert

Click for details

Origin

House of Representatives

2025 Regular Session

AI Summary

  • Prohibits auto insurers from increasing premium rates or adding surcharges based on an insured's first lapse in liability coverage, provided the lapse does not exceed 90 days
  • Allows insurers to increase rates or add surcharges for subsequent lapses in coverage after the first protected lapse
  • Resets the "first lapse" protection after an insured maintains continuous coverage for five or more consecutive years following a prior lapse
  • Prohibits insurers from denying motor vehicle insurance applications or requiring coverage from another insurer based solely on lapses in coverage
  • Removes the previous provision allowing insurers to consider lapses when determining policy rates
  • Effective January 1, 2026

Legislative Description

Provides relative to lapses in required insurance coverage

INSURANCE/AUTOMOBILE

Last Action

Effective date: 01/01/2026.

6/20/2025

Committee Referrals

Insurance4/30/2025
Insurance4/4/2025

Full Bill Text

No bill text available