SR 164

2026 Regular Session  ENROLLED
SENATE RESOLUTION NO. 164
BY SENATOR CATHEY
  A RESOLUTION
To urge and request the Department of Insurance to study and make recommendations
        regarding issues related to insurance coverage of motor vehicle damage repairs,
        including the steering of insureds and claimants to preferred repair facilities and the
        settlement of disputes regarding the adjustment of vehicle damage claims.
        WHEREAS, R.S. 22:1892 governs the payment and adjustment of certain insurance
claims, including vehicle damage claims; and
        WHEREAS, R.S. 22:1892(D) prohibits an insurer from requiring motor vehicle
repairs to be made in a particular place or shop or by a particular entity, a practice known
as "steering"; and
        WHEREAS, pursuant to R.S. 22:1892(D), an insurer may recommend the use of a
particular motor vehicle service or network of repair services if the insurer informs the
insured or claimant that he is under no obligation to use the recommended repair service or
network of repair services, thus allowing insurers to steer insureds or claimants to preferred
repair facilities; and
        WHEREAS, the Louisiana Insurance Code provides a framework for the mediation
of disputes over amounts owed by an insurer to an insured or claimant for certain policy
lines, but does not provide such a framework for the resolution of disputes regarding the
adjustment of motor vehicle damage claims that are less than a total loss; and
        WHEREAS, motor vehicle repair facility owners testified to the Senate Committee
on Insurance on alleged violations of the provisions regarding steering; and
        WHEREAS, additional testimony was provided by the motor vehicle repair facility
owners regarding their inability to properly contest an insurer's adjustment of a motor
vehicle damage claim and the repairs necessary to restore an insured's or claimant's motor
vehicle to proper working condition, resulting in additional time and expense to their
customers; and
        WHEREAS, the Department of Insurance is the state regulator of the insurance
industry in Louisiana and serves as advocate for the state's insurance consumers; and
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SR NO. 164  ENROLLED
        WHEREAS, practices related to unfair claims settlement, consumer coercion,
misrepresentation, or anti-competitive conduct may undermine consumer choice, negatively
affect competition among independently owned repair businesses, and potentially result in
repairs that prioritize insurer cost savings over vehicle safety, quality, and
manufacturer-recommended repair procedures, and it is vital that the potential for violations
of the Louisiana Insurance Code be thoroughly examined by the Department of Insurance
to ensure compliance with state law; and
        WHEREAS, a comprehensive study by the Louisiana Department of Insurance would
assist the legislature in determining the extent of insurer steering practices, identifying any
gaps in the department's enforcement authority, and evaluating whether additional consumer
protections or statutory reforms are necessary.
        THEREFORE, BE IT RESOLVED that the Senate of the Legislature of Louisiana
does hereby urge and request the Department of Insurance to study and make
recommendations regarding issues related to insurance coverage of motor vehicle damage
repairs, including the steering of insureds and claimants to preferred repair facilities and the
settlement of disputes regarding the adjustment of vehicle damage claims.
        BE IT FURTHER RESOLVED, the department shall also study and make
recommendations regarding the feasibility, desirability, and practicality of enacting a
statutory dispute resolution procedure to resolve disputes between an insurance provider and
a motor vehicle repair facility over the repairs necessary to restore a customer's motor
vehicle to proper working condition and to prevent the steering of insureds and claimants
to preferred motor vehicle repair facilities.
        BE IT FURTHER RESOLVED that when conducting the study, the Department of
Insurance shall engage and solicit input, recommendations, and advice from all relevant and
interested parties and stakeholders, including but not limited to motor vehicle repair facility
owners, insurers, and consumer advocates.
        BE IT FURTHER RESOLVED that the Department of Insurance shall submit a
written report of its findings and recommendations, including proposals for legislation, to
the Senate Committee on Insurance and to the David R. Poynter Legislative Research
Library, as required by R.S. 24:771 and 772, no later than February 1, 2027.
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SR NO. 164  ENROLLED
       BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
commissioner of insurance.
  PRESIDENT OF THE SENATE
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