AI-assisted research summary: An insurer generally may not raise motor vehicle insurance premiums or add a surcharge because of a first lapse in coverage if the lapse is 90 days or less.
§1284.1. Motor vehicle insurance; consideration of lapse in coverage A (1)(a) An insurer shall not increase the premium rate or increase or add a surcharge on any policy of motor vehicle insurance based on an insured's first lapse in coverage, provided the lapse does not exceed ninety days. Any subsequent lapse in coverage may result in an increased premium rate or surcharge on a policy. Each time an insured maintains continuous coverage for five or more consecutive years following a lapse in coverage, the insurer shall treat the first subsequent lapse in coverage as a first lapse for the purposes of this Section. (b) As used in this Section, "lapse in coverage" or "lapse" means any period during which the owner of a motor vehicle ceases to maintain liability coverage on a vehicle as required by the Motor Vehicle Safety Responsibility Law. (2) The withdrawal of a discount for which an insured no longer qualifies shall not be deemed an increase in the premium rate or a surcharge as used in this Subsection. B. Repealed by Acts 2025, No. 476, §2, eff. Jan 1, 2026. C. Any insurer who violates the provisions of this Section shall refund to the insured person the amount of premium paid in excess of the amount that would have been charged if the insurer had complied with this Section. D. Notwithstanding any other provisions of law to the contrary, one or more lapses in coverage, as defined in this Section, shall not be the sole basis for an insurer's denial of an application for a policy of motor vehicle insurance. In addition, an insurer shall not require that coverage be provided by another insurer based solely upon a lapse in coverage. Acts 2010, No. 636, §1; Acts 2020, No. 52, §1; Acts 2025, No. 476, §§ 1, 2, eff. Jan. 1, 2026.