For the Louisiana Personal Lines exam, the Personal Auto Policy (PAP) is tested two ways: the national policy structure and the Louisiana auto laws layered on top of it. This standalone guide walks through the lettered parts every PAP uses, then focuses on the Louisiana rules an agent applies daily—financial-responsibility minimums, the at-fault legal system, pure comparative negligence, the requirement that uninsured/underinsured motorist coverage be rejected in writing, the direct action statute, and how policies can be cancelled or nonrenewed. Spend your study time on the Louisiana overlay; that is where the state questions live.

The national fundamentals (quick version)

The Personal Auto Policy insures individuals and families for the vehicles they own and drive. It is divided into clearly labeled parts:

• Part A — Liability Coverage: pays for bodily injury (BI) and property damage (PD) the insured is legally responsible for, with a duty to defend and supplementary payments (defense costs, bail bonds) paid on top of the limit.
• Part B — Medical Payments: pays medical and funeral expenses for the insured and passengers regardless of fault.
• Part C — Uninsured/Underinsured Motorists (UM/UIM): pays your injuries when the at-fault driver has no insurance or too little.
• Part D — Coverage for Damage to Your Auto: Collision and Other Than Collision (Comprehensive), each with a deductible, paid at Actual Cash Value (ACV).
• Part E — Duties After an Accident or Loss and Part F — General Provisions set the rules.

An insured generally includes the named insured, the resident spouse, resident family members (related by blood, marriage, or adoption who live in the household, including a child away at school), and anyone using the covered auto with permission. The coverage territory is generally the United States, its territories and possessions, and Canada. That skeleton is the same nationwide; Louisiana changes the dollar limits and the legal environment around it.

Louisiana is an at-fault (tort) state

Louisiana follows a tort (at-fault) system rather than a no-fault system. Whoever causes the crash is financially responsible, and the injured person recovers from that driver's liability insurance—or sues. Because of this, liability coverage and proof of financial responsibility are the backbone of Louisiana auto regulation.

When drivers share blame, Louisiana uses pure comparative negligence. The injured person's recovery is reduced by their own percentage of fault, but never eliminated—a claimant who is even 99% at fault can still collect the remaining sliver. This differs from a modified comparative system (where being more than 50% at fault bars recovery) and from a no-fault system (where each driver turns first to their own coverage). The exam frequently checks that you know Louisiana is pure comparative.

The direct action statute

A defining Louisiana feature is the direct action statute. In certain circumstances it lets an injured third party sue the at-fault driver's liability insurer directly, rather than being limited to suing the driver alone. This is unusual nationally and is a favorite exam point, so keep the headline in mind: in Louisiana, you can go directly after the insurer.

Financial responsibility: the 15/30/25 minimums

Louisiana drivers must demonstrate financial responsibility, almost always by buying liability insurance that meets the state's minimum split limits of 15/30/25 (commonly cited—verify current figures):

• $15,000 bodily injury per person
• $30,000 bodily injury per accident
• $25,000 property damage per accident

Agents say this aloud as "15/30/25." These are bare-minimum floors—most clients should buy more to protect their assets. An SR-22 filing certifies that a high-risk driver is maintaining the required coverage.

Uninsured/underinsured motorist coverage—rejected in writing

Here is a point Louisiana agents must never get wrong: UM/UIM coverage must be offered on every auto policy, and it is generally provided at the policy's bodily-injury limits unless the insured rejects it or selects lower limits IN WRITING on a valid form.

• A verbal request, or simply doing nothing, does not waive UM/UIM—without a valid written rejection, the coverage is generally included.
• UM protects you when the at-fault driver has no insurance or flees (hit-and-run).
• UIM handles the situation where the at-fault driver has insurance but not enough, paying the gap up to your limit.
• Louisiana may permit stacking—combining the UM limits of multiple owned vehicles—in some circumstances.

The recurring theme: UM/UIM is offered by default and can only be cut or waived through a written rejection/selection form.

No PIP, plus the optional coverages

• Louisiana does not require PIP / no-fault coverage. Medical Payments (Med Pay) is available as an optional first-party coverage paying medical and funeral costs regardless of fault.
• Collision and Comprehensive (Other Than Collision) are optional, though a lender will usually require them on a financed vehicle. Theft, fire, hail, and hitting an animal are Comprehensive, not Collision.
• Optional add-ons include towing and labor, rental reimbursement (transportation expenses), and gap coverage.

Cancellation and nonrenewal notice

Louisiana limits how and when an insurer can end a personal auto policy, generally requiring advance written notice before canceling or nonrenewing. Timelines are commonly cited rather than memorized verbatim—verify the current figures:

• Cancellation for nonpayment of premium uses a shorter notice.
• Other mid-term cancellations require a longer advance written notice, and after a policy has been in force a set time the insurer may cancel only for limited reasons—chiefly nonpayment, license suspension/revocation, or fraud/material misrepresentation.
• Nonrenewal (declining to continue at term's end) likewise requires advance written notice so the insured can shop for replacement coverage.

Keep the short nonpayment window separate from the longer ordinary-cancellation / nonrenewal window.

Key Louisiana numbers to memorize

Common exam traps

• Louisiana is at-fault, not no-fault—there is no mandatory PIP here.
• Pure comparative negligence—recovery is reduced by fault but never barred (don't apply a 50%/51% cutoff).
• UM/UIM is waived only in WRITING; a phone call or inaction leaves the coverage in place.
• 15/30/25—don't slide the $25k property-damage figure into a bodily-injury slot.
• The direct action statute lets the injured party sue the insurer directly.
• Hitting an animal is Comprehensive, not Collision.
• Supplementary payments (defense, bail) are paid in addition to the limit.

Quick recap

• The PAP keeps its national Parts A–F structure; Louisiana changes the limits and legal context.
• Louisiana is a tort/at-fault state using pure comparative negligence, where recovery is reduced by fault but never eliminated.
• Financial-responsibility minimums are 15/30/25 (verify).
• UM/UIM is offered by default and can only be rejected or reduced in writing.
• The direct action statute allows an injured party to sue the liability insurer directly.
• Louisiana has no mandatory no-fault/PIP; Med Pay, Collision, and Comprehensive are optional, and cancellation/nonrenewal require advance written notice.