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Committee hears debate on rideshare uninsured motorist coverage; sponsor asks for clarification of existing law
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Summary
Lawmakers heard hours of testimony on HB 702, a bill by Rep. Mandy Landry to clarify that transportation network companies must provide uninsured/underinsured motorist coverage at liability limits. Proponents said drivers and passengers are currently at risk; industry warned fares and insurance shares could rise. The committee voluntarily deferred the bill for more study.
Representative Mandy Landry introduced House Bill 702, saying the bill would clarify that transportation network companies (TNCs) must provide uninsured and underinsured motorist (UM/UIM) coverage that is not less than statutory liability limits. Landry told the House Insurance Committee the gap leaves drivers and many riders without meaningful recovery when an uninsured motorist is at fault and that the legislature originally intended to protect passengers and drivers.
Landry described the consequences: "We're protecting our drivers. We're protecting riders, neither of whom have a choice in this matter," and urged the committee to correct what she called an exploit of statutory language by litigation.
Attorney Thomas Corrington, who has litigated these issues, told the committee the statute previously required specific liability limits (e.g., $5,100 for stage 1, $1,000,000 for stage 2) and included uninsured motorist coverage. He said TNCs later relied on wording that referenced "to the extent required by 22:1212.95" to argue they could waive UM/UIM coverage. Corrington summarized the legal history: courts in the Fourth and then the Fifth Circuit accepted that reading, producing the current gap. He said HB 702 would simply clarify legislative intent and remove that waiver argument.
Representatives across the committee questioned practical effects and alternatives. Rep. Galante and others pressed Landry on whether drivers can buy a private product to fill the phase-2/3 coverage gap; Landry and independent agents said they cannot find a market product that covers drivers in those phases. Benjamin Albright of the Independent Insurance Agents of Louisiana testified that his members cannot effectively offer coverage for a driver during phases 2 and 3 and that the usual carrier forms exclude that exposure.
Industry representatives disputed cost and market impacts. Christian Rhodes, testifying for Uber, said roughly "about 26% of the current fare" in Louisiana rides goes to insurance premiums under the company's liability cap and projected that share could rise "north of 40%" if HB 702 passed. Paula Wellens, counsel for Uber in Louisiana, said Uber offers MedPay and optional occupational accident insurance for drivers and that some protection is available via those offerings.
Committee members debated alternatives: (1) clarify the statute to return to the pre-litigation interpretation, (2) mandate higher MedPay minimums so injured passengers at least receive medical-payment coverage, or (3) take broader action addressing common carriers and TNCs uniformly. Several members said they lacked reliable data on how frequently the uninsured-driver scenarios occur and asked for studies or claims data.
After extended questioning and closing remarks reiterating legislative intent, Representative Jordan moved to voluntarily defer HB 702. The motion passed with no objections and the bill was voluntarily deferred for further study.
Ending: The committee deferred HB 702 to allow for additional information-gathering on frequency of incidents, cost estimates, and whether narrower fixes (like increased MedPay) would address the harms Landry identified.
