Louisiana Legislature Passes Shop Choice Bill

State Representative Terry Landry (D-96) introduced House Bill 411, which changes current restrictions on insurance companies directing consumers to specific motor vehicle repair shops. Current law prohibits an insurer from requiring an insured to use a particular place or shop as a condition when making a payment incident to a claim, while the proposed law allows the insurer to provide options for consumers when selecting a motor vehicle repair shop. Insurers must inform consumers that they are not required to use the recommended repair facility. The legislation was introduced on March 29, 2019 and passed the Louisiana House of Representatives and Senate. The bill has been signed by the Governor and will go into effect on August 1, 2019. The Louisiana Legislature ended their regular legislative session on June 6, 2019.

Written by Alexandra Moyer

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