Creates an exemption for members of the armed services to avoid a penalty for lapse of automobile coverage. (8/1/20)
Impact
If enacted, SB65 will significantly impact state laws related to automobile insurance. It establishes a clear guideline preventing insurers from raising rates or imposing surcharges solely based on a lapse in coverage. Additionally, the bill prohibits unfair discrimination against military service members by ensuring that their service-related lapses do not adversely affect their insurance options and pricing. This change could help provide greater financial protection for military families who might otherwise face overwhelming insurance costs when they return home.
Summary
Senate Bill 65 aims to amend Louisiana's laws regarding automobile insurance, specifically addressing how insurers treat customers who experience lapses in their insurance coverage. The bill protects individuals, particularly those in the military, from penalties or increased premiums due to lapses in coverage resulting from their service. The legislation defines a 'lapse in coverage' as the period wherein a vehicle owner fails to maintain the required liability coverage, and stipulates that insurers cannot use this lapse as the sole reason for denying coverage or altering rates.
Sentiment
The sentiment surrounding SB65 appears largely supportive, particularly among lawmakers and organizations advocating for military families. Proponents argue that the bill is essential in providing fairness and recognition for individuals who serve in the armed forces and may experience interruptions in their insurance coverage. Conversely, some critics may express concerns about how such exemptions could influence overall insurance rates and market stability, though the predominant view seems to be one of approval for protecting service members.
Contention
Notable points of contention may arise around the potential implications for insurance companies and the insurance market overall. Opposition could stem from concerns about the financial sustainability of allowing such exemptions, with critics arguing that they might lead to higher costs for all policyholders. Nevertheless, supporters maintain that these changes are necessary not only to provide equity for military members but also to align state laws with broader national standards regarding military protections in insurance matters.
Revises personal injury protection coverage for basic automobile insurance policies from $15,000 to $20,000 and requires $50,000 minimum personal injury protection coverage for standard automobile liability insurance policies.