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2007 SUMMARY OF NEW STATE LAWS - LOUISIANA

Louisiana State Legislative Website

BILL #

CHAPTER #

ISSUE

BILL DESCRIPTION

HB 88

227

Motor vehicle insurance - traffic offenses

Provides with respect to the elements of the crime of operating a vehicle while intoxicated. Effective: August 15, 2007.

HB 203

140

Civil procedure

Provides for discovery in civil actions; to provide for the scope of discovery; to provide exceptions to disclosure; to provide remedies for inadvertent disclosure; to provide for discovery of experts; to provide for discovery of electronically stored information; to provide for live trial testimony by video; to provide for delivery of process by commercial carrier; and to provide for related matters. Effective: August 15, 2007.

HB 216

26

Commercial insurance

Provides for mandatory insurance coverage or liability protection for licensees of the Louisiana Motor Vehicle Commission or motor vehicle dealers; provide for liability of purchasers with respect to vehicles in their custody pursuant to a conditional sale; provides that failure to maintain such insurance or liability protection shall result in the immediate suspension of license. Effective: August 15, 2007.

HB 312

294

Financial regulation

Authorizes certain investments by domestic insurers in limited liability companies. Effective: August 15, 2007.

HB 340

148

Corporate governance -- miscellaneous

Provides relative to rights of employees to be free from reprisal and threats of reprisal for whistle blowing; relative to prohibited actions by employers against their employees, procedures of the board of ethics concerning findings relating to public involving possible criminal activity and relates to the records of the board concerning such findings; to require the posting of certain information regarding the rights of public employees; relative to penalties; and to provide for related matters. Effective: August 15, 2007.

HB 381

43

Property insurance

Provides an insurance policy may not limit the insured's right of action against the insurer to a period of less than two years; changes the prescriptive period and adds burglary and forgery, glass, and homeowners' insurance to the coverages enumerated in present law; changes the prescriptive period for suits based on a fire insurance policy; specified the prescriptive period for any suit or action based on such policies shall be limited to first-party claims. Effective: August 15, 2007.

HB 398

45

Motor vehicle insurance - auto equipment

Expands the use of visual display technology by the driver of a motor vehicle to include a display of the front of the motor vehicle for the purpose of maneuvering the vehicle. Effective: June 19, 2007.

HB 407

190

Motor vehicle insurance -- fees

Extends the sunset date of an extra fee on drivers' licenses used to fund litter reduction efforts. Effective: August 15, 2011.

HB 422

96

Motor vehicle insurance - traffic offenses

Relates to driving while intoxicated; expands the list of persons who are qualified to withdraw blood to determine the alcoholic content or presence of controlled dangerous substances to include physician's assistants, emergency medical technicians, and nurse practitioners. Effective: August 15, 2007.

HB 431

403

Catastrophe-related legislation

Changes the governor's appointments to the governing body of the Louisiana Citizens Property Insurance Corporation. Effective: August 15, 2007.

HB 460

312

Identity theft - personal information

Increases mandatory imprisonment when crime of identity theft involves elderly or disabled victims. Effective: August 15, 2007.

HB 472

235

Catastrophe-related legislation

Provides relative to the recoupment of Louisiana Citizens Property Insurance Corporation assessments and deletes its credit schedules under the Coastal and FAIR plans. Effective: January 1, 2008.

HB 481

191

Fees

Provides for an annual financial regulation fee along with payment of any expenses associated with an examination by the insurance commissioner or investigation. Effective: July 1, 2007.

HB 499

404

State regulation

Provides relative to the fee for the initial certificate of authority for an insurer or rating organization; deletes the fee for initial examination of insurance companies; changes the fee for filing a charter, other documents, and amendments thereto; and provides for a for issuance of a certificate of compliance, all to be collected by the commissioner of insurance. Effective: August 15, 2007.

HB 558

323

Catastrophe-related legislation

Requires property and casualty insurers to provide a discount, credit, rate differential, adjustment in deductible or other adjustment to reduce the insurance premium to insureds who comply with building codes or provide for damage mitigation. Effective: July 9, 2007.

HB 596

156

Property insurance

Provides that assertion of a defense of material misrepresentation made by an insured subsequent to loss by fire as to the value of the contents of a residence or business shall not entitle an insurer to void total coverage of the policy based on such misrepresentation, unless a court adjudicates otherwise; such judicial determination shall apply to the claim that is the subject of the litigation and shall not apply retroactive of the claim that is the subject of the litigation. Effective: June 25, 2007.

HB 629

364

Building codes

Creates the Industrialized Building Act; provides for third-party inspectors and design review agencies; provides for standards of construction for industrialized buildings; provides for enforcement of the building code; provides for equivalent methods of compliance; provides for inspections of industrialized buildings; provides for decals or insignia on modules indicating that the building complies with the building code for specific wind zones; provides for reciprocity of industrialized buildings. Effective: August 15, 2007.

HB 651

332

Workers' compensation - miscellaneous provisions

Provides for the liabilities of the workers' compensation Second Injury Fund. Effective: July 9, 2007.

HB 652

413

Motor vehicle insurance - ignition interlock devices

Relates to installation of ignition interlock devices; provides for the suspension of driver's licenses for alcohol-related motor vehicle offenses; provides for the installation of interlocking devices in certain offender's vehicles; provides with respect to persons qualified to perform chemical test for intoxication. Effective: August 15, 2007.

HB 678

447

Catastrophe-related legislation

Establishes the Insure Louisiana Incentive Program; attracts new property insurance market capacity through certain public and private partnerships in order to accomplish this essential public purpose; provides for the administration and funding of the program; provides for the administration of the program through the execution of cooperative endeavor agreements which provide for matching grants and for the conditions and limitations on such grants. Effective: August 15, 2007.

HB 704

335

Building codes

Provides for changes to the State Uniform Construction Code. Effective: July 9, 2007.

HB 717

449

Catastrophe-related legislation

Provides for the elimination of contents coverage on residential properties following a catastrophe. Applies to policies on or after January 1, 2008. Effective: July 11, 2007.

HB 743

110

Building codes

Provides for changes to the Commercial Building Energy Conservation Code; changes to the 2006 edition of the International Energy Conservation Code as the Commercial Building Energy Conservation Code for applicable buildings not covered by present law; provides an exemption for buildings of less that 3,000 square feet of gross floor from the provisions of the code. Effective: June 22, 2007.

HB 766

112

Motor vehicle insurance - enforcement issues

Authorizes the Office of Motor Vehicles to issue driver's licenses that are valid only as long as the driver has lawful presence in the United States; provides that no driver's license shall be issued to a foreign national until their name has been referred for a criminal background check that includes checking the applicant's name with the terror watch list and by both the National Crime Information Center and Immigration and Naturalization Services. Effective: August 15, 2007.

HB 829

349

Fees

Provides for the distribution of a portion of the Two Percent Fire Insurance Fund to Delgado Community College for firefighter training. Effective: August 15, 2007.

HB 853

60

Motor vehicle insurance - traffic offenses

Clarifies the procedure for notification of violation of provisions relative to overtaking and passing school buses. Effective: August 15, 2007.

HB 897

61

Motor vehicle insurance - traffic offenses

Requires disqualification of commercial driving privileges for commission of a felony involving the manufacture, distribution, or dispensing of a controlled substance or possession with intent to manufacture, distribute, or dispense a controlled substance, and conviction of a second offense of driving under the influence of alcohol with an alcohol concentration of at least 0.04 percent but under an alcohol concentration of 0.08 percent while operating a commercial motor vehicle. Effective: August 15, 2007.

HB 910

354

Motor vehicle insurance - auto coverage issues

Requires rental car companies to maintain mandatory minimum insurance on vehicles and to extend such financial responsibility protection to certain renters or drivers for third party liability claims against such renters or drivers; provides that such insurance shall apply only when there is no other collectible insurance meeting the minimum financial responsibility requirement, if the renter or driver is not otherwise insured, and if the third party claimant doesn't have uninsured or underinsured coverage. Effective: August 15, 2007.

HB 960

459

Catastrophe-related legislation

Abolishes the Insurance Rating Commission and establishes the office of consumer advocacy within the Department of Insurance. Effective: January 1, 2008.

HB 962

420

Catastrophe-related legislation

Eliminates the application of the Louisiana Citizens Property Insurance Corporation's noncompetitive rating structure to residential property insurance policies in any market that the Commissioner of Insurance deems noncompetitive; provides that an agent's commission shall only be paid on the actuarially justified amount of the premium. Effective: August 15, 2007.

HB 966

361

Catastrophe-related legislation

Relates to civil procedure; provides for the abandonment of actions. Effective: July 9, 2007.

HCR 11

Resolution

Authorizes and directs the State Licensing Board for Contractors to consult with the Attorney General and to develop proposed homeowner's rights legislation.

HCR 17

Resolution

Memorializes Congress to enact legislation creating a federal catastrophe fund.

HCR 50

Resolution

Memorializes Congress either to extend the Terrorism Risk Insurance Act to cover hurricanes or to establish a tax incentive program for insurers that provide insurance coverage for hurricanes.

HCR 105

Resolution

Requests the Department of Labor and the office of risk management to conduct a study regarding the benefits of employees sustaining catastrophic injuries.

HR 1

Resolution

Directs the House Committee on Insurance to hold hearings on the Louisiana Citizens Property Insurance Corporation.

HR 132

Resolution

Requests the House Committee on Insurance to investigate the feasibility of establishing a regional catastrophe fund that would allow states along the Gulf Coast to pool property insurance risks and other resources as a method of reducing insurance premiums.

SB 3

244

Catastrophe-related legislation

Establishes annual Louisiana Sales Tax Holidays to exempt from state sales tax each year from Sunday through Saturday of the week in which the first of August occurs the first $2,500 of purchases by all consumers and by businesses located in areas which were designated as Hurricane Katrina or Hurricane Rita Federal Emergency Management Agency (FEMA) Individual Assistance Areas. Effective: July 9, 2007.

SB 37

462

Catastrophe-related legislation

Excludes storm shutter devices from state sales and use tax. Effective: July 1, 2007.

SB 54

250

Producer licensure -- agent practices

Provides that when the insurance producer of record receives any compensation from a governmental entity for the placement of insurance coverages and represents the governmental entity with respect to that placement, the producer shall fully disclose to the governmental entity in writing all fees, commissions, or other compensation payable to the producer of record from the insurer or any source other than the governmental entity that relate to the placement of the insurance coverages. Effective: July 9, 2007.

SB 95

123

Motor vehicle insurance - enforcement issues

Authorizes certain service-connected disabled veterans to obtain a free driver's license. Effective: August 15, 2007.

SB 137

257

Motor vehicle insurance - salvage title

Removes requirement of a buyer's identification card for Internet based salvage pool or salvage disposal sales of motor vehicles by a used motor vehicle dealer. Effective: August 15, 2007.

SB 153

377

Catastrophe-related legislation

Provides for depopulation of the Louisiana Citizens Property Insurance Corporation. Effective: November 1, 2007.

SB 158

260

Military personnel insurance-related legislation

Provides for insurance allowances for Louisiana National Guard members. Effective: July 9, 2007.

SB 182

467

Catastrophe-related legislation

Provides a refundable tax credit for voluntarily retrofitting residential property to bring it into compliance with the State Uniform Construction Code. Effective: July 11, 2007.

SB 183

468

Catastrophe-related legislation

Requires that the Louisiana Citizens Property Insurance Corporation give a preference for insurance adjuster work to Louisiana companies. Effective: August 15, 2007.

SB 188

379

Tax issues

Restructures the "new markets tax credit" including removing the cap on total credits per year; increasing the total credit allowed and the credit on the initial date of investment; capping the investment amount in a single business; and allowing a credit in excess of the federal credit. Effective: July 1, 2007.

SB 204

381

Catastrophe-related legislation

Amends existing law to prohibit an insurer from canceling or non-renewing a homeowner's policy where two or more claims within a period of three years shall not include any loss incurred or arising from an "Act of God." Effective: July 10, 2007.

SB 205

222

Catastrophe-related legislation

Creates an office of consumer advocacy in the Department of Insurance and for enforcement of a property insurance consumer's bill of rights by the office. Effective: July 5, 2007.

SB 207

127

Motor vehicle insurance - traffic offenses

Clarifies exceptions for certain persons who drive without a license; relative to motor vehicles; to provide relative to persons who drive without a license; to provide for unlicensed persons who operate farm equipment on highway shoulders; to provide for unlicensed minors who drive with a licensed parent or guardian; and to provide for related matters. Effective: June 25, 2007.

SB 211

382

Catastrophe-related legislation

Provides for claiming of the tax credit for assessments levied by Louisiana Citizens Property Insurance Corporation on forms provided by the secretary of revenue after the payment is made. Effective: July 10, 2007.

SB 253

12

Credit insurance

Relates to financing single premium insurance mortgage loans; no mortgage lender shall finance the premium amount for any single premium credit life, dismemberment, health and accident, mortgage life and disability, involuntary unemployment, or debt cancellation insurance sold unless that portion of original balance is scheduled to be fully amortized no later than the coverage expiration date of such insurance product. Effective: June 18, 2007.

SB 259

384

Workers' compensation - self-insurance

Relates to workers' compensation; changes the amount of retained premiums which must be maintained by self-insurers. Effective: August 15, 2007.

SB 290

388

Motor vehicle insurance -- miscellaneous

Provides for the Vehicle Protection Product Act; provides no vehicle protection product may be sold unless the seller, warranter, or administrator complies with the act; provides that service contract providers who do not sell protection products are not subject to the act; requires such warrantors must meet at least one of a list of financial responsibility conditions in order to ensure adequate performance under the warranty; requires warrantors to keep related books and records. Effective: January 1, 2008.

The information contained in this summary is not intended as a portrayal of every property/casualty-related law enacted in each state. Rather, it represents recently enacted legislation specifically identified by NAMIC State and Regulatory Affairs Staff as bearing direct relevance to those issues that represent NAMIC's National State Legislative Agenda or otherwise deemed pertinent to the interests of the majority of NAMIC members.

This summary is for use as a convenient tool for our members, and is not intended, and should not be considered to be, legal advice. Please consult your legal representatives.