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LA HB496
Bill
Status
Passed
6/20/2025
Primary Sponsor
Troy Hebert
Click for details
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