§ 22:1475 — Louisiana Automobile Insurance Plan

§1475. Louisiana Automobile Insurance Plan
A. After consultation with insurance companies authorized to issue motor vehicle
insurance in this state, the commissioner of insurance shall approve a reasonable plan, the
Louisiana Automobile Insurance Plan, referred to in this Section as the "plan", which shall
function exclusively as a residual market mechanism, to applicants who are in good faith
entitled to, but are unable to, procure such insurance through ordinary means, for the purpose
of insuring private passenger motor vehicles, commercial motor vehicles including garage
liability insurance, and other motor vehicles.
B. The governing committee of the Louisiana Automobile Insurance Plan shall
consist of the following nine members:
(1) The commissioner of insurance or his designee.
(2) One member designated by the commissioner of insurance.
(3) One member designated by the Louisiana Association of Fire and Casualty
Insurance Companies.
(4) One member designated by the president of the Senate.
(5) One member designated by the speaker of the House of Representatives.
(6) Four members selected from and by the membership subject to approval by the
commissioner of insurance.
C. The plan may establish a Personal Automobile Insurance Procedure, referred to
in this Section as "PAIP", to do the following:
(1) Cause to be issued policies of private passenger automobile insurance in the
plan's name to eligible applicants, as described in Subsection A of this Section, and to
provide policyholder and claim handling services.
(2) Allocate the operating results of the PAIP, profit or loss, to those subscribers that
write private passenger motor vehicle insurance.
D. The plan may establish a Commercial Automobile Insurance Procedure, referred
to in this Section as "CAIP", to do the following:
(1) Appoint an insurance company or companies to act as a servicing carrier to issue
commercial automobile insurance policies to eligible applicants, as described in Subsection
A of this Section, and to provide policyholder and claim handling services.
(2) Cause to be issued policies of commercial automobile insurance in the plan's
name to eligible applicants, as described in Subsection A of this Section, and to provide
policyholder and claim handling services.
(3) Allocate the operating results of the CAIP, profit or loss, to those subscribers that
write commercial motor vehicle insurance.
E. Any policy of insurance issued by the plan pursuant to the Personal Automobile
Insurance Procedure or the Commercial Automobile Insurance Procedure shall be recognized
as if issued by an insurance company authorized to issue insurance in this state.
F. Every form of a policy, endorsement, rider, manual of classification, rules, and
rates, every rating plan, and every modification of any of them proposed to be used by the
plan shall be filed and approved by the commissioner of insurance.
G. All insurance companies writing insurance for private passenger motor vehicles,
commercial motor vehicles, and other motor vehicles in this state shall be subscribers to the
plan and share in the administrative expenses for the operation of the plan based on a
subscriber fee and an assessment based on the market share of premiums.
H. Any applicant for any policy, any person insured under any such policy, and any
insurance company affected may appeal to the commissioner of insurance from any ruling
or decision of the manager or the governing committee of the plan to operate the plan. Any
person aggrieved by an order or act of the commissioner of insurance may, within ten days
after receipt of written notice of the order or act, file a petition in the Nineteenth Judicial
District Court or in the district court of the domicile of the aggrieved person, for a review of
the order or action. The court shall summarily hear the petition and make the appropriate
order or decree.
I. The exceptions contained under the provisions of R.S. 32:1041(A) shall apply to
the plan functioning as a residual market mechanism.
NOTE: Former R.S. 22:1475 redesignated as R.S. 22:24 by Acts 2008, No.
415, §1, eff. Jan. 1, 2009.

Legislative History

Acts 1958, No. 125. Amended by Acts 1960, No. 296, §1. Acts 1985, No. 644, §1; Acts 1986, No. 1021, §1; Acts 1993, No. 599, §1; Acts 2007, No. 459, §§1, 4, eff. Jan. 1, 2008; Redesignated from R.S. 22:1417 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2010, No. 703, §2, eff. Jan. 1, 2011; Acts 2020, No. 53, §1, eff. Jan. 1, 2021.