July 10, 2001

INSURANCE INFORMATION NOTICE NO. 2002—1

SUBJECT: REDUCTION OF AUTOMOBILE LIABILITY LIMIT

IN A SPECIAL CIRCUMSTANCE

Based on a recent ruling of the Louisiana Supreme Court, the Office of Risk Management (ORM) has amended the policy that provides automobile liability coverage to reflect a reduced limit in a special circumstance. When an employee causes an accident and it is determined that he or she was on personal business and not acting in the course and scope of their employment at the time of the accident, then our policy will only pay the statutory minimum limit of the state having jurisdiction.

The minimum limits in the State of Louisiana are $10,000 per person, $20,000 per accident, and $10,000 property damage per accident. This is the most ORM will pay on behalf of an employee who is driving a state vehicle in Louisiana but not in the course of their employment at the time an accident occurs.

If you should have any questions, please contact Walter Lockhart at (225) 342-8466.