§ 22:1457 — Discounts; rate reductions

§1457. Discounts; rate reductions
A.(1) A rate reduction of up to ten percent shall be authorized by the commissioner,
if actuarially justified, upon application of a rate filing by the carrier on motor vehicle
liability and physical damage insurance where the insured and principal operator, regardless
of age, produces certification from the National Safety Council or its registered cooperating
agencies, evidencing successful completion of the National Safety Council Defensive
Driving Course or certification of successful completion of a defensive driving course
approved and certified by the Department of Public Safety and Corrections. Should an
automobile be used by multiple drivers, the rate reduction shall not be authorized on that
automobile unless all those who drive the automobile complete such a course successfully.
The reduction provided for in this Section shall also be authorized for one or more motor
vehicles owned and operated by parishes, municipalities, or other political subdivisions when
the governing authority produces certification evidencing successful completion of such a
course by all persons who drive said vehicles. The Department of Public Safety and
Corrections, Public Safety Services, office of state police, may promulgate rules and
regulations to establish criteria and standards for the approval and certification of defensive
driving courses. The expenses of the approval and certification process by the Department
of Public Safety and Corrections shall be funded through an interagency agreement with the
Department of Insurance, contingent upon the appropriation of funds by the legislature.
(2) The form of certification shall be as determined by the commissioner. The credit
shall not apply to experience-rated or assigned risk policies, or to policies subject to a
discount for an approved driver education course sanctioned by the Department of Public
Safety and Corrections, public safety services, or required to pay a substandard risk surcharge
for such insurance, or to any person whose enrollment in a defensive driving course resulted
from a court order or sentence directing such enrollment.
(3) Such credit shall apply to new and renewal policies effective within a period of
thirty-six months subsequent to the date of completion of the course. Following such
thirty-six-month period, in order to again qualify for such credit, the course must be
successfully repeated and evidence again presented. A fee of one dollar or such other sum
approved by the commissioner may be charged by the National Safety Council, its registered
cooperating agencies, or operators of any approved and certified defensive driving course for
certifying course completion. If the policy insures two or more automobiles, the credit shall
apply only to that automobile principally operated by a person who has satisfactorily
completed such a course.
B.(1) The provisions of Subsection A of this Section notwithstanding, the
commissioner shall authorize an actuarially justified rate reduction, as determined by the
carrier, upon application of rate filing by the carrier on bodily injury liability, property
damage liability, and collision insurance where the named insured and principal operator is
fifty-five years of age or older and produces certification from the National Safety Council
or its registered cooperating agencies evidencing successful completion of the National
Safety Council Defensive Driving Course or certification of successful completion of a
defensive driving course approved and certified by the Department of Public Safety and
Corrections. Should a vehicle be used by multiple drivers, the rate reduction shall not be
authorized on that motor vehicle unless all those who drive the vehicle are fifty-five years
of age or older and have completed such a course. The Department of Public Safety and
Corrections, Public Safety Services, office of state police, may promulgate rules and
regulations to establish criteria and standards for the approval and certification of defensive
driving courses. The expenses of the approval and certification process by the Department
of Public Safety and Corrections shall be funded through an interagency agreement with the
Department of Insurance, contingent upon the appropriation of funds by the legislature.
(2) The reduction shall not apply to experience-rated or assigned risk policies or to
any person eligible for a preferred rating plan or required to pay a substandard risk surcharge
for such insurance or to any person whose enrollment in a defensive driving course resulted
from a court order or sentence directing his enrollment.
(3) Such a reduction shall apply to new and renewal policies effective within a period
of thirty-six months subsequent to the date of completion of a course. Following the thirty-six-month period, the course shall be successfully repeated and evidence again presented in
order to again qualify for such credit. A fee of one dollar or such other sum approved by the
commissioner may be charged by the National Safety Council, its registered cooperating
agencies, or the operators of any approved and certified defensive driving course for
certifying course completion. If the policy insures two or more vehicles, the reduction shall
apply only to that vehicle principally operated by the eligible person.
C. An insurer who delivers or issues for delivery in this state comprehensive
insurance coverage on a motor vehicle shall grant an actuarially justified discount in the
amount approved by the commissioner in the premiums charged for the comprehensive
insurance for any motor vehicle when the vehicle identification number of the vehicle is
etched into all of the windows of such motor vehicle. The letters and numbers of the vehicle
identification number shall be no smaller than one-eighth of an inch and shall be
nonremovable and permanent.
D.(1) An insurer who delivers or issues for delivery in this state any policy for motor
vehicle insurance coverage shall grant a discount in the premiums charged for the automobile
insurance policy upon the named insured consenting to have personally identifiable data that
has been collected from the named insured through a safe driving program, application, or
telematics device shared with or sold to any third party for use unrelated either to the
insurance transaction or public safety or to promote any other public policy purpose.
(2) Prior to providing a named insured's personally identifiable data to a third party,
an insurer shall seek and obtain consent from the named insured through a separate statement
of consent accompanied by a box that must be selected or checked off by the insured to
acknowledge the insured is opting to give such consent.
(3) Nothing in this Subsection alters or limits the ability of an insurer who delivers
or issues motor vehicle insurance coverage to collect data from a named insured as part of
a safe driving program, application, or telematics device.
E. A rate reduction shall be authorized by the commissioner, if actuarially justified,
upon application of a rate filing by the carrier on motor vehicle liability and physical damage
insurance for coverage of any motor vehicle when the insured vehicle is equipped with
daytime running headlights or headlights equipped to activate in inclement weather.
F. A rate reduction shall be authorized by the commissioner, if actuarially justified,
upon application of a rate filing by the carrier on motor vehicle liability and physical damage
insurance for coverage of any motor vehicle when the insured vehicle is equipped with a
global positioning system (GPS) or a vehicle tracking system which aids in the recovery of
stolen vehicles as such system shall be further defined by rules and regulations promulgated
by the Department of Insurance.
G. For fire insurance rates, all insurers shall assign the fire protection grade of the
fire servicing area where the property of the insured is located, provided that the property is
located within seven road miles of the nearest responding fire department.
H. Any insurer who makes application to the commissioner for a rate filing shall
provide in its application details as to what discount or reduced rate will be given to insureds
who comply with the State Uniform Construction Code.
NOTE: Former R.S. 22:1457 redesignated as R.S. 22:18 by Acts 2008, No.
415, §1, eff. Jan. 1, 2009.

Legislative History

Acts 1958, No. 125. Amended by Acts 1960, No. 296, §1; Acts 1975, No. 175, §1. Acts 1983, No. 518, §1; Acts 1984, No. 816, §1; Acts 1984, No. 872, §1; Acts 1992, No. 654, §1; Acts 1995, No. 223, §1; Acts 1997, No. 724, §1; Acts 2001, No. 169, §1; Acts 2003, No. 456, §1; Acts 2003, No. 1093, §1; Acts 2004, No. 239, §1; Acts 2007, No. 459, §1, eff. Jan. 1, 2008; Acts 2008, No. 132, §1, eff. June 6, 2008; Redesignated from R.S. 22:1404 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2011, No. 294, §1; Acts 2020, No. 95, §1.