On May 28, 2025, Louisiana Governor Jeff Landry signed HB549 into law, one of six tort reform measures put into place as part of his and Insurance Commissioner Temple’s efforts to attract insurers back to Louisiana and lower premium rates for its residents and businesses, such as trucking and transportation companies. Now formally La. R.S. 22:1482.2, the law requires premium reductions for the liability portions of insurance policies covering commercial motor vehicles equipped with dashboard cameras and telematics systems.
What You Need to Know
R.S. 1482.2 defines “dashboard cameras” as a dashboard-mounted video recording device capable of continuous loop recording at a minimum quality of 1080p, and “telematics system” as a device or software integrated with a vehicle that collects and transmits real-time date on driving behavior, including but not limited to speed, braking, and mileage, to an insurer, fleet owner, or third-party vendor designated by an insurer or policyholder.
Every insurer authorized to issue commercial motor vehicle policies must provide a discount on the liability premium for each motor vehicle which meets the requirements in an amount based on loss experience, claims date, or other relevant factors. The statute does not set forth a specific rate or discount amount.
To qualify, a policy holder must ensure the equipment is installed at the time of the policy issuance or renewal, meets minimum standards set forth by the insurance commissioner (including compatibility for data verification), and remain in continuous use during the policy period. The policyholder also must provide proof of installation and operation, such as a certificate from a licensed vendor or telematics data report, upon the request of the insurer.
Insurers are to annually verify compliance via telematics summary report or signed affidavit as to its continuous use. Failure to comply with these requirements will result in a forfeiture of the discount at the next policy period, unless proof of compliance is later provided. The insurance commissioner may also put in place exemptions for insurers who show that discounts are not warranted based on claims data specific to their portfolio.
Each insurer is also required to submit an annual report to the insurance commissioner by March 1st of each year detailing the number of vehicles receiving the discount, the aggregate annual savings, and observed changes in claim frequency or severity attributable to the cameras. Any insurer found to be in willful noncompliance is subject to monetary penalty per violation and potential suspension or revocation of their license to issue insurance policies.
The Takeaway
In total, HB549, now La. R.S. 22:1482.2, appears to be designed to provide much needed relief for businesses, while allowing certain discretion for insurers in assigning said discounts. Potential critics may argue, however, that the law does not go far enough, and that the discretionary provision may allow insurers to enact inconsequential discounts. Regardless, R.S. 22:1482.2 will likely have an impact on claim legitimacy and may increase insurers’ willingness to litigate – while others will point that it’s another step in a much-needed compromise between customers and insurers.
In any event, the Louisiana legislature and governor’s office hope this tort reform package will both provide relief to customers and further signify to insurers that Louisiana is a safe place to do business.
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