§ 32:861 — Security required

§861. Security required
A.(1) Every self-propelled motor vehicle registered in this state except those motor
vehicles used as agricultural or forest vehicles during seasons when they are not used on the
highway, those used primarily for exhibit or kept primarily for use in parades, exhibits, or
shows, and lease-bound mobile rig haulers as defined in Subsection D of this Section, shall
be covered by an automobile liability policy with liability limits as defined by R.S.
32:900(B)(2) or 900(M), or a binder for same, or by a motor vehicle liability bond as defined
by Subsection B of this Section, or by a certificate of the state treasurer stating that cash or
securities have been deposited or securitized with said treasurer as provided by Subsection
C of this Section, or by a certificate of self-insurance as provided by R.S. 32:1042.
(2)(a) It shall be the duty of the registered owner of a motor vehicle to maintain the
security hereinabove required. Failure to maintain said security shall subject the registered
owner to the sanctions provided in R.S. 32:863, 864, and 865.
(b) For the period August 15, 2006, through August 14, 2007, the provisions of this
Part shall not apply to water-damaged vehicles as defined by R.S. 32:702, regardless of
whether the vehicle is a total loss, if and only if, the registered owner of the water-damaged
vehicle applies for a certificate of destruction in accordance with procedures established by
the secretary. Such applications shall be processed in a manner similar to that outlined in
R.S. 32:707.3.
(3) If the owner or lessee wishes to discontinue the use of a vehicle registered in his
name, he shall surrender the vehicle's license plate to the secretary within ten calendar days
of cancellation or, prior to the cancellation, he shall notify the secretary by written statement
containing the date of cancellation of liability security on the vehicle, that the vehicle is no
longer in use and the intended period of nonuse, and shall have the agent who previously
issued the policy of insurance on the vehicle submit an affidavit that the insurance on the
vehicle will be cancelled during the period of time that the vehicle will not be in use.
B. "Motor vehicle liability bond" means a bond conditioned:
(1) That the obligor shall, within thirty days after the rendition thereof, satisfy:
(a)(i) All judgments rendered against him or against any person responsible for the
operation of the obligor's motor vehicle with his express or implied consent in actions to
recover damages for property damage or for bodily injuries, including death at any time
resulting therefrom, and
(ii) Judgments rendered as aforesaid for consequential damages consisting of
expenses incurred by a husband, wife, parent, or tutor for medical, nursing, hospital, or
surgical services in connection with or on account of such bodily injuries or death sustained
during the term of the bond by any person, and
(b) Arising out of the ownership, operation, maintenance, control, or use upon the
highways and roads of the state of such motor vehicle,
(2) To the amount or limit of:
(a) Not less than twenty-five thousand dollars for damages to the property of others,
and
(b) Not less than fifteen thousand dollars on account of injury to or death of any one
person, and
(c) Subject to such limits as respects injury to or death of one person, of not less than
thirty thousand dollars on account of any one accident resulting in injury to or death of more
than one person.
C.(1)(a) The applicant for registration may, in lieu of procuring a motor vehicle
liability bond or policy, deposit with the state treasurer cash in the amount of fifty-five
thousand dollars, or otherwise pledge, assign, or securitize, to the satisfaction of the state
treasurer on such forms and documents as he shall require, which shall constitute a lien
thereon in favor of the treasurer for the liabilities set forth in this Section and authorize him
to sell same pursuant to Subparagraph (c) of this Paragraph, bonds, stocks, securities, or
other evidences of indebtedness satisfactory to said treasurer of a market value of not less
than fifty-five thousand dollars as security for the payment by such applicant or by any
person responsible for the operation of such applicant's motor vehicle with his express or
implied consent of all judgments rendered against such applicant or against such person in
actions to recover damages to property or for bodily injuries, including death at any time
resulting therefrom, and judgments rendered as aforesaid for consequential damages
consisting of expenses incurred by a husband, wife, parent, or tutor for medical, nursing,
hospital, or surgical services in connection with or on account of such bodily injuries or
death sustained during the term of registration by any person and arising out of the
ownership, operation, maintenance, control, or use upon the highways and roads of the state
of such motor vehicle to the amount or limit of at least twenty-five thousand dollars on
account of any such judgment for damages to property or to the amount of fifteen thousand
dollars for bodily injury or death to any one person or to the amount of thirty thousand
dollars for bodily injury or death to more than one person.
(b) Upon presentation to the state treasurer by an officer qualified to serve civil
process of an execution issued on any such judgment against the registrant or other person
responsible as aforesaid, the treasurer shall pay, out of the cash deposited by the registrant
as herein provided, the amount of the execution, including costs and interest, up to but not
in excess of twenty-five thousand dollars for damages to property or fifteen thousand dollars
to any one person for damages for bodily injury or death or thirty thousand dollars for bodily
injury or death to more than one person.
(c) If the registrant has deposited, or otherwise pledged, assigned, or securitized
pursuant to Subparagraph (a) of this Paragraph, bonds, stocks, securities, or other evidences
of indebtedness, the state treasurer shall, on presentation of an execution as aforesaid, cause
the securities, or such part thereof as may be necessary to satisfy the judgment, to be sold at
public auction giving the registrant three days' notice in writing of the time and place of the
sale. From the proceeds of the sale the state treasurer shall, after paying the expenses thereof,
satisfy the execution as hereinbefore provided when a cash deposit has been made.
(d) Any sale by or payment upon an execution by the state treasurer in accordance
with the provisions of this Section shall discharge him from all official and personal liability
whatever to the registrant to the extent of such payment.
(e) The state treasurer shall deposit any cash received under the provisions of this
Section in a savings bank or savings department of a trust company or of a national bank
within the state.
(f) The depositor shall be entitled to the interest accruing on his deposit and to the
income payable on the securities deposited. He may from time to time change such securities
with the approval of the state treasurer.
(g) The state treasurer, whenever for any reason the amount of such deposit falls
below the amount required by this Section, shall require, at the option of the registrant, the
deposit of additional cash or securities up to the amount required by this Section or a motor
vehicle liability bond or policy as provided in this Chapter.
(h) Money or securities deposited with the state treasurer under the provisions of this
Section shall not be subject to attachment or execution except as provided in this Section.
(2) The state treasurer shall give to the applicant for registration a receipt on a form
prescribed by the treasurer for the amount of cash or securities deposited, or pledged,
assigned, or securitized by him with the treasurer under this Chapter. The state treasurer
shall retain such cash or securities deposited or securitized as aforesaid and shall not deliver
or release the lien on the same or the balance thereof to the registrant on his order until the
expiration of the time within which actions, the payment of judgments in which are secured
by such deposit, may be brought against the registrant or the person responsible for the
operation of the registrant's motor vehicle with his express or implied consent, nor in any
case if a written notice is filed with the state treasurer stating that such an action has been
brought against the registrant or other person responsible as aforesaid, until payment is made
as provided in this Subsection or satisfactory evidence is presented to the treasurer that final
disposition of the action has been made.
D. "Lease-bound mobile rig hauler" as used in this Chapter means a winch or crew
truck in excess of twenty-six thousand pounds which meets the following description:
(1) The hauler is operated on the highways of Louisiana only for the purpose of
hauling mobile workover rigs or any accessories for a mobile workover rig within a ten-mile
radius of the operator's oil and gas lease.
(2) The haulers are covered under a general liability policy, issued by an insurance
company authorized to do business in the state, with liability coverage and limits equal to or
greater than those defined in R.S. 32:900(B)(2), and such proof of the coverage is provided
to the secretary as he may, by rule, require.
E.(1) The owners of motor vehicles registered in other states or jurisdictions that
require liability security shall maintain the security and proof thereof as required by their
respective state or jurisdiction while the vehicle is operated in this state. A personal injury
protection card issued from an insurer in another state or jurisdiction without a bodily injury
endorsement shall not be sufficient proof of liability security.
(2) Failure to comply with the requirements of this Subsection shall subject the
owner and the operator to the sanctions which are provided in R.S. 32:57 and limitations on
recovery of damages provided for in this Part. Owners and operators of any motor vehicle
in violation of this Subsection shall be subject to limitation of recovery as provided for in
R.S. 32:866.
(3) The commissioner may adopt regulations to provide for the implementation of
the provisions of this Subsection.

Legislative History

Added by Acts 1977, No. 115, §1, eff. July 1, 1978. Amended by Acts 1981, No. 926, §1, eff. Jan. 1, 1982; Acts 1984, No. 237, §1; Acts 1985, No. 229, §1; Acts 1987, No. 616, §1, eff. July 9, 1987; Acts 1992, No. 830, §1, eff. July 8, 1992; Acts 1995, No. 301, §1, eff. June 15, 1995; Acts 2001, No. 227, §1; Acts 2001, No. 883, §1; Acts 2001, No. 1032, §12; Acts 2001, No. 1069, §1; Acts 2006, No. 692, §1; Acts 2008, No. 921, §1, eff. Jan. 1, 2010; Acts 2011, No. 370, §2; Acts 2018, No. 567, §1.