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Committee allows one-time pass for first lapse in auto coverage; bill reported with amendment
Summary
Lawmakers approved House Bill 496 with amendments to grant a one-time reprieve for a policyholder’s first lapse in auto coverage, preventing insurers from imposing a surcharge for that initial lapse. Sponsors said the change protects consumers who experience a brief interruption; industry asked to clarify operational details.
Representative Hebert’s House Bill 496 seeks to limit insurer surcharges tied to short lapses in automobile coverage. After debate the committee adopted amendment set 11‑58, which narrows the original proposal: it would provide a single, one‑time reprieve so that a policyholder’s first short lapse in coverage would not…
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