Louisiana Judge Halts Rule on Licensing for Tire Insurance

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A state district judge has granted Louisiana’s auto dealers’ and tire stores’ request to temporarily stop the state from forcing them to become licensed insurance agents in order to sell tire-and-wheel road hazard coverage.

In December, Insurance Commissioner Jim Donelon’s office issued a directive saying that, short of action by the state Legislature, the department would require anyone selling those types of products to get a property and casualty insurance license.

Bob Israel, head of the Louisiana Automobile Dealers Association, tells The Advocate that a lawsuit was “a stopgap measure.”

He said the auto dealers and tire stores will ask the Legislature to carve out an exception for the road hazard coverage.

Information from: The Advocate, http://www.2theadvocate.com