§866. Compulsory motor vehicle liability security; failure to comply; limitation of damages
A.
(1)There shall be no recovery for the first one hundred thousand dollars of bodily
injury and no recovery for the first one hundred thousand dollars of property damage based
on any cause or right of action arising out of a motor vehicle accident, for such injury or
damages occasioned by an owner or operator of a motor vehicle involved in such accident
who fails to own or maintain compulsory motor vehicle liability security.
(2)For purposes of this Section, the meaning of "bodily injury" and "property
damage" is governed by the applicable motor vehicle liability insurance policy or, in the
event of security other than an insurance policy, the meaning of such terms is that which is
commonly ascrib
Free access — add to your briefcase to read the full text and ask questions with AI
§866. Compulsory motor vehicle liability security; failure to comply; limitation of damages
A.(1) There shall be no recovery for the first one hundred thousand dollars of bodily
injury and no recovery for the first one hundred thousand dollars of property damage based
on any cause or right of action arising out of a motor vehicle accident, for such injury or
damages occasioned by an owner or operator of a motor vehicle involved in such accident
who fails to own or maintain compulsory motor vehicle liability security.
(2) For purposes of this Section, the meaning of "bodily injury" and "property
damage" is governed by the applicable motor vehicle liability insurance policy or, in the
event of security other than an insurance policy, the meaning of such terms is that which is
commonly ascribed thereto.
(3)(a) The limitation of recovery provisions of this Subsection do not apply if the
driver of the other vehicle:
(i) Is cited for a violation of R.S. 14:98 as a result of the accident and is subsequently
convicted of or pleads nolo contendere to such offense.
(ii) Intentionally causes the accident.
(iii) Flees from the scene of the accident.
(iv) At the time of the accident, is in furtherance of the commission of a felony
offense under the law.
(b) The limitation of recovery provisions of this Subsection do not apply if at the
time of the accident, the other vehicle is not being operated and the vehicle is not in violation
of the provisions of Chapter 1 of this Title.
B. Each person who is involved in an accident in which the other motor vehicle was
not covered by compulsory motor vehicle liability security and who is found to be liable for
damages to the owner or operator of the other motor vehicle may assert as an affirmative
defense the limitation of recovery provisions of Subsection A of this Section.
C. If the owner of a motor vehicle, who fails to own or maintain compulsory motor
vehicle liability security, institutes an action to recover damages in any amount, regardless
of whether such owner or operator is at fault, and is awarded an amount equal to or less than
one hundred thousand dollars of bodily injury, then such owner or operator shall be assessed
and held liable for all court costs incurred by all parties to the action.
D. Each person who applies for a driver's license, registers a motor vehicle, or
operates or owns a motor vehicle in this state is deemed to have given his consent to be
subject to and governed by the provisions of this Section. All persons who apply for the
issuance or renewal of a driver's license, motor vehicle title, or motor vehicle registration
shall sign a declaration on a form developed by the Department of Public Safety and
Corrections pursuant to rule and regulation that the person acknowledges and gives consent
to the requirements and provisions of this Section and that the person will comply with all
provisions of this Section and the Motor Vehicle Safety Responsibility Law. Proof of
whether the person obtained or signed such declaration is irrelevant to the application of this
Section.
E. Nothing in this Section shall preclude a passenger in a vehicle from asserting a
claim to recover damages for injury, death, or loss which he occasioned, in whole or in part,
by the negligence of another person arising out of the operation or use of a motor vehicle.
This Subsection shall not apply to a passenger who is also the owner of the uninsured motor
vehicle involved in the accident.
F.(1) Notwithstanding any provision of law to the contrary, no insurer shall lose any
rights of subrogation for claims paid under the applicable insurance policy for the recovery
of any sum in excess of the first one hundred thousand dollars of bodily injury and the first
one hundred thousand dollars of property damages.
(2) In claims where no suit is filed, the claimant's insurer shall have all rights to
recover any amount paid by the claimant's insurer on behalf of the insured for the recovery
of any sum in excess of the first one hundred thousand dollars of bodily injury and the first
one hundred thousand dollars of property damages.
G.(1) Except for newly acquired vehicles added to a policy subject to the policy
terms, the issuance, change, or adjustment of any motor vehicle liability security or insurance
policy subsequent to a motor vehicle accident, without proof of coverage having been bound
prior to such motor vehicle accident, shall not effectuate any of the following:
(a) The recovery for injury or damages that are otherwise prohibited under this
Section.
(b) The defeat of any affirmative defense otherwise allowed under this Section.
(c) The avoidance of liability for court costs otherwise required under this Section.
(2) Reinstatement provisions of a policy during the premium payment grace period
specified in the policy shall not be invalidated by the provisions of this Section.
H. The provisions of this Part shall not apply to any vehicle which is legally parked
at the time of the accident.
NOTE: See Acts 1997, No. 1476, §5(D)(2). The rate reduction day was the
date on which the judgment in the lawsuit became final, May 8, 1998.
Sections 2 through 4 became effective 120 days thereafter, Sept. 6, 1998.