2008 SUMMARY OF NEW STATE LAWS – LOUISIANA

BILL #

CHAPTER #

ISSUE

BILL DESCRIPTION

HB 42

206

All-terrain Vehicles

Repeals an exemption on minimum garage liability insurance coverage on certain used motor vehicle dealers. Effective date: August 15, 2008.

HB 140

194

Uninsured Motorists

Removes reference to repealed statute in uninsured motorist law. Effective date: August 15, 2008.

HB 141

125

Homeowner’s Insurance

Corrects the statutory reference to homeowner's insurance. Effective date: August 15, 2008.

HB 163

8

Property Insurance

Creates the crime of criminal damage to property by defacing with graffiti. Effective date: August 15, 2008.

HB 177

126

Fire Standards

Relates to the State Uniform Fire Prevention Code; defines structure as any building or structure of any kind except the interior of a single private and one or two family dwelling as defined by the State Uniform Construction Code; maintains present law relating to the National Fire Prevention Code but limits the application of provisions relating to buildings, structures, movables and watercrafts. Effective date: August 15, 2008.

HB 198

484

Building Codes

Provides for changes to the State Uniform Construction Code; relates to affordability; requires the evaluation of each new edition of the International Building Code upon its release; requires an update of the state code; amends provisions regarding the State Plumbing Code; relates to code enforcement officers and code inspectors. Effective date: August 15, 2008.

HB 214

11

Financial Regulation

Requires the notification of the appointment of officers or directors of foreign and alien insurers; requires foreign and alien insurers to provide the Commissioner of Insurance biographical information for all elected or appointed directors and senior officers by a certain time period from effective date of election or appointment including for the President, Secretary, Treasurer, Chief Executive Officer, Actuary, Controller or anyone who is responsible for these positions. Effective date: August 15, 2008.

HB 222

883

Property Insurance

Requires filing with and approval of property residual value insurance policies by the Commissioner of Insurance; authorizes fees for the filings. Effective: August 15, 2008.

HB 223

143

Catastrophe-related Legislation

Requires life or health and accident insurers, health maintenance organizations, managing general agents, and third-party administrators to maintain written catastrophe response plans; requires the Insurance Commissioner to review such plans; provides confidentiality for such plans. Effective date: August 15, 2008.

HB 286

14

Property Insurance

Relates to dogfighting; provides anyone found guilty of dogfighting, owning a dogfighting facility, advertising dogfighting, keeping dogs or paraphernalia for dogfighting, or attending dogfighting events shall be fined or imprisoned; provides the minimum penalty of imprisonment for all offenders is a certain amount of time with or without hard labor; removes the separate penalty for spectators at dogfighting events and provides same penalties will be imposed on spectators as imposes on participators. Effective date: August 15, 2008.

HB 302

347

Rate Regulation

Provides that a surcharge on rates charged by the Louisiana Citizens Property Insurance Corporation shall not apply in St. Mary Parish. Effective date: August 15, 2008.

HB 333

15

Fraud

Relates to fraudulent insurance acts and penalties; specifies that certain acts relative to proof of insurance cards or documents are fraudulent insurance acts; makes possession of a fraudulent proof of insurance card or document a misdemeanor; provides that commission of any fraudulent insurance act shall require payment of restitution to the victim insurance company of insurance payments and the cost associated with the defense of the fraudulent claim. Effective date: August 15, 2008.

HB 385

211

Rate Regulation

Provides for rate making by State Citizens Property Insurance Corporation; authorizes the Chief Executive Officer of the Corporation or his designee to survey all insurers to determine what is necessary to comply with provisions of present law and requires insurers to submit all information needed; makes survey information proprietary, privileged and confidential; exempts such information from provisions of public records; adds the requirement of rates effective a certain amount of time. Effective date: August 15, 2008.

HB 400

148

Traffic Offenses

Relates to motor vehicles; provides penalties for second, third and subsequent offenses of alternation or removal of identifying numbers on a motor vehicle; retains present law which prohibits removal or alteration of identifying numbers on motor vehicles, sales of motor vehicles on which identifying number has been altered or removed and penalties for such actions. Effective date: August 15, 2008.

HB 402

355

Traffic Safety

Prohibits school bus operators from using cellular telecommunication devices while driving. Effective date: August 15, 2008.

HB 481

109

Guaranty Fund

Relates to the definition of covered claim under the State Insurance Guaranty Association statute; excludes claims asserted for coverage under a policy when the net worth of the insured for whom coverage would allegedly be owed exceeds a certain amount of money on a certain date immediately preceding the date of the determination of the insolvency of the insurer; specifies net worth exclusion includes the aggregate net worth of the insured and subsidiaries and affiliates calculated on a consolidated basis. Effective date: August 15, 2008.

HB 535

703

Workers’ Compensation

Relates to workers compensation; provides relative to allocation of death benefits to dependents of injured workers; provides for a schedule and equal allocation of payments among the dependents. Effective date: August 15, 2008.

HB 545

217

Manufactured Housing

Provides for changes to the minimum standards for installation of manufactured homes. Effective date: August 15, 2008.

HB 547

704

Workers’ Compensation

Concerns workers compensation; provides for the time and procedure for submission of filing fees; provides for the collection of filing fees at the time of filing unless the filing party requests a waiver of costs due to indigent status and such request is granted by the office of workers' compensation; provides that a certain filing fee be taxed as costs to be paid by the party against whom an award becomes final. Effective date: July 2, 2008.

HB 554

705

Workers’ Compensation

Concerns workers compensation; authorizes a workers' compensation judge to issue a cease and desist order prohibiting an employer from continuing its business operations until such time as an employer procures workers' compensation coverage and pays a fines related to not obtaining coverage. Effective date: August 15, 2008.

HB 606

132

Auto Insurance Discounts

Provides that the Commissioner of Insurance shall authorize a rate reduction on vehicles equipped with a global positioning system or vehicle tracking system which helps in recovering stolen vehicles. Effective date: June 6, 2008.

HB 751

157

Identity Theft

Adds the crime of identity theft to the Louisiana Racketeering Act. Effective date: August 15, 2008.

HB 765

296

Flood Insurance

Requires a parish or municipality to comply with federal flood plain management and flood insurance programs before construction of any project for local flood protection or any project for hurricane or storm damage reduction which involves or receives federal assistance. Effective date: June 17, 2008.

HB 784

160

Drivers’ Licenses

Relates to the requirements for certain classes of commercial driver's licenses; allows farm vehicles controlled and operated by a farmer, used to transport agricultural products, farm machinery or farm supplies to or from a farm, to be operated by a driver without a commercial driver's license; allows an applicant for a commercial driver's license endorsement if he passes any requisite security assessment; provides such endorsement may be issued if it is determined there is no security threat. Effective date: August 15, 2008.

HB 785

88

Traffic Offenses

Concerns violations of the operation of commercial motor vehicles; clarifies employers convicted of knowingly authorizing a driver to operate a commercial motor vehicle in violation of any federal, state or local law or regulation regarding railroad crossings shall be subject to civil penalties; provides an employer who knowingly requires, permits, or authorizes a driver to operate a commercial vehicle during anytime the driver has a suspended, revoked or canceled license is subject to civil penalties. Effective date: August 15, 2008.

HB 786

161

DUI Penalties

Increases the minimum mandatory sentences for third and subsequent offenses of operating a vehicle while intoxicated and requires community service as a condition of probation. Effective date: August 15, 2008.

HB 814

300

Traffic Safety

Increases penalties for violations for failure to properly restrain child in motor vehicle. Effective date: Varies.

HB 839

91

Window Tinting

Prohibits owners or operators of vehicles with an approved Medical and Security Exemption Affidavit from placing window tint on an entire windshield of a vehicle; allows on the first certain number of inches of a windshield to be tinted on a vehicle associated with a person with a security or medical exemption; provides certain motorists may be granted a security or sun allergy exemption which allows for tinting of all windows on registered vehicle excluding the area below the top of the windshield. Effective date: August 15, 2008.

HB 945

710

Abandoned Vehicles

Requires parishes and municipalities to provide for the removal of abandoned motor vehicles; provides for no criminal liability, notice of removal and related matters. Effective date: August 15, 2008.

HB 1113

504

Financial Regulation

Requires that any foreign or alien insurer doing business in this state deposit securities with a bank or savings and loan; allows any such insurer to deliver a surety bond; provides that a life insurer with capital stock or in surplus above liabilities need not comply; requires that any domestic, foreign, or alien insurer engaged in doing a guaranty, fidelity, surety, or bond business in this state deposit money or approved securities and provide a receipt to the commissioner of insurance. Effective date: January 1, 2009.

HB 1117

315

Underground Storage

Provides for leasing and permitting of certain underground storage. Effective date: August 15, 2008.

HB 1126

95

Identity Theft

Defines "person" and amends definition of "disabled person" for purposes of the crime of identity theft. Effective date: August 15, 2008.

HB 1130

137

Policy Provisions

Exempts group coverage and health policies from provisions of law prohibiting insurance companies from using expirations, records, or other information related to insurance policies written by an agent to sell or negotiate renewal of any insurance coverage without the written consent of the agent or broker; provides that policies providing life insurance, disability income, long-term care, and annuity files are owned by the insurance company to whom they were submitted; makes other related changes. Effective date: August 15, 2008.

HB 1147

608

Insurance Fraud

Amends the termination date of the insurance fraud investigation unit within the Department of Public Safety and Corrections, public safety services and the office of state police. Effective date: August 15, 2008.

HB 1151

168

Traffic Offenses

Increases the fines for moving violations when highway workers are present working on the road. Effective date: August 15, 2008.

HB 1308

813

Fire Inspections

Allows the Office of the State Fire Marshal to act as a third-party provider of inspections on commercial and residential structures in certain parishes; authorizes plan reviews. Effective date: August 15, 2008.

HB 1312

921

Compulsory Auto Liability Limits

Increases the minimum limits for compulsory motor vehicle liability insurance. Effective date: January 1, 2010.

HB 1352

97

Property Damage

Provides with respect to simple criminal damage to property. Effective date. August 15, 2008.

HB 1369

900

Fire Protection

Relates to the property insurance; revises the membership of the Board of Directors of the Property Insurance Association of Louisiana; includes a representative from the Fire Chiefs Association and the State Firemen's Association; establishes an advisory committee to study and evaluate the public fire protection classification or grading for a public fire protection area. Effective date: July 10, 2008.

HB 1375

849

Property Insurance

Allows homeowner's insurers to provide state military personnel a premium discount. Effective date: August 15, 2008.

SB 5

434

Citizens Property Insurance Corporation

Relates to the State Citizens Property Insurance Corporation; requires the corporation to provide a preference to instate adjusters and adjusting firms; requires the corporation to give preference to instate service providers and businesses for underwriting; requires each service provider to provide monthly reports to the corporation that include the names of instate adjusting companies whose services are being used and the number of claims provided to such companies. Effective date: June 26, 2008.

SB 16

851

Traffic Offenses

Relates to motor vehicle liability policies; requires the establishment of a system to allow law enforcement officials to identify and verify the existence of motor vehicle insurance in real-time using advanced telecommunications and computer technology; provides for the establishment of an advisory group concerning such system. Effective date: July 9, 2008.

SB 17

388

Coverage Issue

Relates to the Citizens Property Insurance Corporation; specifies that eligibility for coverage only applies to persons who have been denied coverage by other insurers; requires that application forms must disclose each insurance carrier who denied property insurance coverage to the applicant. Effective date: June 23, 2008.

SB 44

390

Insure Louisiana Incentive Program

Authorizes a third invitation for grant applications under the Insure Louisiana Incentive Program; provides for the recovery of unearned grants, use of unused monies to assist persons with homeowners insurance premiums and grants to existing insurers to insure new dwellings when the level of risk of catastrophe is the same or less; provides grants to insurers who reinstate certain coverages; provides grants to insurers who were forced to reduce coverage, or drop coverage, in order to maintain solvency. Effective date: June 23, 2008.

SB 74

435

Traffic Offenses

Prohibits evidence from a traffic camera from becoming part of vehicle operator's driving record. Effective date: August 15, 2008.

SB 122

440

Solvency Issue

Provides for a review of insurers who cancel or fail to renew an insurance policy providing property, casualty, or liability insurance on property; provides that such insurers are eligible for review if the policy has been in effect and renewed for a specified number of years and was canceled or not renewed because continuation endangered the solvency of the insurer or the rate or premium was insufficient after rate relief was applied for and rejected. Effective date: August 15, 2008.

SB 149

402

Rate Regulation

Prohibits insurers from using fines and penalties, whether levied by a court or a regulatory body, for the purpose of setting rates or making rate filings. Effective date: June 23, 2008.

SB 150

403

Captives

Creates regulations for the formulation and operation of domestic captive insurance companies. Effective date: January 1, 2009.

SB 160

854

Property Insurance

Provides for changes in homeowner's insurance policy deductibles and the application of deductibles in the event of loss. Effective date: July 9, 2008.

SB 240

687

Guaranty Fund

Provide for the limitation of liability of the Louisiana Insurance Guaranty Association. Effective date: August 15, 2008.

SB 245

410

State Regulation

Lists the types of insurers and other risk bearing entities that are regulated under the Insurance Code. Effective date: January 1, 2009.

SB 263

54

Bail Bonds

Establishes that the crime of jumping bail is the intentional failure to appear at the date, time, and place as ordered by the court before which the defendant's case is pending; provides that if the state proves notice has been given to the defendant, a rebuttable presumption of notice shall apply, and the burden of proof shifts to the defendant to show that he did not receive notice. Effective date: August 15, 2008.

SB 308

787

Expert Witnesses

Provides for a pre-trial hearing regarding the qualifications and admissibility of testimony of expert witnesses. Effective date: January 1, 2009.

SB 335

415

State Regulation

Reorganizes and recodifies the Insurance Code. Effective date: January 1, 2009.

SB 444

455

Guaranty Fund Issues

Exempts the Louisiana Guaranty Association from the bond posting requirement in judicial proceedings. Effective date: August 15, 2008.

SB 525

189

Flood Insurance

Requires parishes and municipalities to comply with federal flood plain management and flood insurance programs prior to construction of local flood protection or storm damage reduction projects. Effective date: July 1, 2008.

SB 538

465

Citizens Property Insurance Corporation

Relates to the Louisiana Citizens Property Insurance Corporation Policy Take-Out Program; removes the Louisiana Insurance Guaranty Association from the approval process on policy bundles. Effective date: August 15, 2008.

SB 555

464

Guaranty Fund Issue

Repeals existing law which requires the Commissioner of Insurance to consult the Louisiana Insurance Guaranty Association on all applications made by insurers to do business in the state, and which provides the association the authority to recommend an insurer be barred from conducting such business; provides that the commissioner shall notify the board of all applications made by prospective member insurers, as well as all applications for modification of existing certificates of authority. Effective date: August 15, 2008.

SB 588

469

Insure Louisiana Incentive Program

Relates to the Insure Louisiana Incentive Program; requires, upon finalization of grant applications under the program, that any unexpended money and any unearned matching capital fund grant funds be used for a homeowner policy premium assistance program; exempts such use from review by the Joint Legislative Committee on the Budget; creates the Homeowner Policy Premium Assistance Program and provides for eligibility. Effective date: August 15, 2008.

SB 657

429

Traffic Safety

Creates the Open Roads Law; relates to motor vehicle stopping, standing, or parking on state highways and shoulders of roadways; provides a procedure upon approaching an authorized emergency vehicle; relates to roadway hazard cleanup; creates the Instant Tow Dispatch Pilot Program and the Expedited Towing Pilot Program; requires removal of abandoned vehicles from roadways within a certain time; requires training of police officers in traffic incident management. Effective date: June 23, 2008.

SB 695

471

Financial Regulation

Requires the Commissioner of Insurance to grant an exception from filing financial reports if he determines that compliance with filing reports would constitute a financial or organizational hardship; permits any domestic insurer that is licensed to write business only in the state to make a written application to the commissioner for a waiver from the filing requirements; includes a holding company registration as one of the filings that a domestic company may be exempted from filing. Effective date: August 15, 2008.