A Guide for Commercial Auto Insurance

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Understanding the New Insurance Law Reforms in
Louisiana A Guide for Commercial Auto Insurance
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• In January 2025, Louisiana introduced significant
  new insurance law reforms aimed at making the
  state more competitive for insurers. One of the
  most notable changes is the repeal of the
  "three-year rule," which previously prevented
  insurance companies from canceling or
  non-renewing policies that had been active for
  more than three years. This article will explain
  what these reforms mean for commercial auto
  insurance in Louisiana.
• What is the Three-Year Rule?
• The three-year rule was a unique Louisiana law
  that protected policyholders by ensuring their
  insurance policies could not be canceled or
  non-renewed after three years, regardless of any
  changes in risk or claims history. This rule was
  intended to provide stability and security for
  long-term policyholders.

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• Repeal of the Three-Year Rule
• The new law, signed by Governor Jeff Landry,
  repeals the three-year rule, allowing insurance
  companies to drop up to 5 of their long-standing
  policies starting in 2025. This change aims to
  increase competition among insurers and stabilize
  the insurance market. However, it has raised
  concerns about consumer protections and the
  potential for increased premiums for some
  policyholders.
• Impact on Commercial Auto Insurance
• For businesses in Louisiana that rely on
  commercial auto insurance, the repeal of the
  three-year rule means that insurers now have more
  flexibility in managing their policies. This
  could lead to more competitive pricing and better
  coverage options for businesses. However, it also
  means that businesses may need to be more
  proactive in reviewing their insurance policies
  and ensuring they have adequate coverage.

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• Key Coverages for Commercial Auto Insurance
• Bodily Injury Liability Covers medical
  expenses for injuries caused to others in an
  accident.
• Property Damage Liability Covers damage to
  another person's property in an accident.
• Collision Coverage Pays for repairs or
  replacement of your business vehicle if it is
  damaged in an accident.
• Comprehensive Coverage Covers damages from
  non-collision events such as theft, fire, or
  natural disasters.
• Medical Payments Coverage Covers medical
  expenses for your employees and their passengers
  in the event of an accident.
• Uninsured/Underinsured Motorist Coverage
  Covers medical expenses and vehicle repairs if
  you are involved in an accident with an uninsured
  or underinsured driver.

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• What Businesses Need to Know
• With the new reforms, businesses should
• 1. Review Current Policies Ensure that your
  current commercial auto insurance policy meets
  your business needs and provides adequate
  coverage.
• 2. Stay Informed Keep up-to-date with any
  further changes in insurance regulations and how
  they might affect your business.
• 3. Shop Around Consider comparing quotes from
  different insurers to find the best coverage and
  rates for your business.
• 4. Consult an Expert Work with an insurance
  agent or broker who can help you navigate the new
  regulations and find the best coverage options.

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• Conclusion
• The new insurance law reforms in Louisiana are
  designed to create a more competitive and stable
  insurance market. For businesses with commercial
  auto insurance, this means more flexibility and
  potentially better coverage options. However, it
  also requires businesses to be more vigilant in
  managing their insurance policies. By staying
  informed and working with knowledgeable
  professionals, businesses can ensure they have
  the coverage they need to protect their assets
  and employees.