Louisiana No Pay No Play (NP/NP) Statute Guidelines

Louisiana's No Pay No Play (LSA-RS 32:866) statute requires insurers to verify if a claimant had valid liability insurance at the time of an accident before issuing payment. If uncovered, claimants are financially responsible for the first 15/30/25 thousand dollars of their own damages.

Adjusters must confirm active coverage, ensure the driver is not excluded, and verify permissions for unlisted drivers. If the insured is liable, no payment can be issued until an NP/NP determination is completed. Specific documentation is required, including the Other Insurance Carrier's (OIC) details.

NP/NP generally applies to uninsured vehicle owners, their spouses (community property), and uninsured operators. It does not apply to non-owner passengers, legally parked and unoccupied vehicles, or situations involving DUI, intentional harm, fleeing the scene, or criminal activity by the insured.

Handlers must contact the OIC to verify coverage. If the claimant remains unreachable after 48 days, claims may be closed. If the OIC confirms no coverage, the claimant is notified via formal letter that they are responsible for damages up to the state minimum limits, with only excess amounts payable by the insurer.