SB 511

SLS 26RS-1506  ORIGINAL
 2026 Regular Session
 SENATE BILL NO. 511
 BY SENATOR CATHEY
 AUTOMOBILE INSURANCE. Requires transparency of automobile repairs. (8/1/26)
1AN ACT
2 To enact R.S. 22:1289.2, relative to transparency of automobile repairs; to prohibit insurers
3from steering policyholders; to provide for duties of a repair shop; to provide for
4insurer liability; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6Section 1. R.S. 22:1289.2 is hereby enacted to read as follows:
7§1289.2. Automobile repairs; insurers prohibition; liability transparency for
8repair shops; insurer liability
9A. As used in this Section, "steering" means any communication by an
10insurer to a policyholder or third-party claimant to directly or indirectly
11influence a policyholder or third-party claimant or provide the policyholder or
12third-party claimant with the option to use an automobile repair shop that is a
13preferred carve-out or is in a strategic relationship with the insurer or in which
14the insurer maintains an ownership interest or controls or contracts with to
15provide automobile repairs to its policyholders.
16B. An insurer shall disclose the following to a policyholder or third-party
17claimant:
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  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
 SLS 26RS-1506  ORIGINAL
  SB NO. 511
1(1) The right to choose his own repair shop and services.
2(2) Preferred repair shops and services are optional and not a condition
3of payment of a claim.
4C. An insurer is prohibited from any of the following:
5(1) Offering incentives or discounts to policyholders or third-party
6claimants for using preferred shops.
7(2) Requiring policyholders or third-party claimants to use preferred
8repair shops or service providers.
9(3) Steering policyholders or third-party claimants toward preferred
10repair shops or service providers.
11D.(1) A repair shop shall disclose when nonoriginal equipment
12manufacturer parts (non-OEM) or nonstandard parts are used in making
13repairs.
14(2)(a) A repair shop shall obtain written consent from policyholders or
15third-party claimants before using non-OEM parts or nonstandard parts in
16making repairs.
17(b) The written consent shall include a signed release by the policyholder
18or third-party claimant acknowledging the risks and accepting liability for the
19use of nonOEM or nonstandard parts in making repairs.
20(3) If the insurer pressures the policyholder or third-party claimant into
21accepting substandard repairs through the use of non-OEM or nonstandard
22parts, liability for any resulting safety issues shall reside with the insurer.
  The original instrument and the following digest, which constitutes no part
  of the legislative instrument, were prepared by Senate Legislative Services.
  The keyword, summary, and digest do not constitute part of the law or proof
  or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
  DIGEST
 SB 511 Original  2026 Regular Session  Cathey
 Proposed law provides transparency for automobile repairs.
 Proposed law prohibits insurers from steering policyholders or third-party claimants toward
 preferred repair shops or services.
 Proposed law requires repair shops to obtain the consent of policyholders and third-party
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  Coding: Words which are struck through are deletions from existing law;
  words in boldface type and underscored are additions.
SLS 26RS-1506  ORIGINAL
  SB NO. 511
claimants prior to using nonrecommended services or parts.
Proposed law requires repair shops to disclose when non-OEM parts or nonstandard parts
are used. Further requires repair shops to obtain written consent and waiver of liability for
use of non-OEM parts or nonstandard parts.
Proposed law places liability for any ensuing safety issues on the insurer for pressuring a
policyholder or third-party claimant to accept substandard repairs.
Effective August 1, 2026.
(Adds R.S. 22:1289.2)
  Page 3 of 3
   Coding: Words which are struck through are deletions from existing law;
   words in boldface type and underscored are additions.