A Louisiana bill that “provides for insureds to have the option to choose a particular motor vehicle repair shop” currently is waiting the state’s governor’s approval
The bill, H 411, aims to add the following text to the law:
- An The bill, H 411, shall not recommend the use of a particular motor vehicle service or network of repair services without informing the insured or claimant that the insured or claimant is under no obligation to use the recommended repair service or network of repair services.
- An insurer shall not engage in any act or practice of intimidation, coercion, or threat to use a specified place of business for repair and replacement services.
- The commissioner may levy the following fines against any insurer that violates this Subsection:
- For a first offense, one thousand dollars.
- For a second offense within a twelve-month period, two thousand five hundred dollars.
- For a third or subsequent offense within a twelve-month period, five thousand dollars.
The bill was introduced on March 29. It was referred to the House Committee on Insurance on April 8. It was reported with amendments on May 1, ordered engrossed on May 2 and passed to a third reading. A floor debate was held yesterday, and it passed the House with minor amendments with a vote of 88-0. It passed the Senate on June 1 with a vote of 36-0 and was sent to the governor for approval on June 5.
Click here for the current text of H 411.