GOV. URGED TO VETO FLOODED VEHICLES BILL

The Property Casualty Insurers Association of Amer-ica called upon Louisiana Gov. Kath-leen Blanco to veto a bill that would require all vehicles that are declared “total” losses as a result of recent flooding to be crushed.

In a letter to Gov. Blanco, Greg LaCost, assistant vice president, regional manager and counsel, stated, “While PCI favors removing contaminated vehicles from the roads following Hurricanes Katrina and Rita, House Bill 11 is overly burdensome by not limiting itself to vehicles that are dangerous to the public.”

He said HB 11 would require insurers to take an older model vehicle away from consumers even if they want to repair it. The insurer would then pay the total figure less the deductible. The consumer will be forced to buy a new vehicle in an auto market where there will be a drastic decline in used vehicles. If the governor vetoes the bill, consumers may be able to keep the vehicle, but the car would have to be branded “flooded salvage.”

While the governor had not addressed HB 11 at press time, the following are among the bills passed in the special legislative session that have been signed into law: