Committee allows one-time pass for first lapse in auto coverage; bill reported with amendment
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.
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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 automatically trigger an insurer surcharge or premium increase.
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