§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.

            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.

NOTE: Former R.S. 22:1475 redesignated as R.S. 22:24 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.