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Regular Session, 2012 ENROLLED
SENATE BILL NO. 204
BY SENATOR MORRISH
AN ACT1
To amend and reenact R.S. 13:4581 and R.S. 22:2203(D)(1), relative to exemptions2
applicable to the Louisiana Citizens Property Insurance Corporation; to provide an3
exemption for the corporation from posting bond; to provide an exemption relative4
to rates charged by the corporation; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 13:4581 is hereby amended and reenacted to read as follows: 7
§4581. State, state agencies, political subdivisions, and public boards and8
commissions not required to furnish bond; Louisiana Citizens9
Property Insurance Corporation10
The state, state agencies, political subdivisions, parish, and municipal boards11
or commissions exercising public power and functions, sheriffs, sheriffs'12
departments, and law enforcement districts, the Louisiana Insurance Guaranty13
Association, the Louisiana Citizens Property Insurance Corporation, and the14
Patient's Compensation Fund, or any officer or employee thereof, shall not be15
required to furnish any appeal bond or any other bond whatsoever in any judicial16
proceedings instituted by or brought against them, that arise from activities within17
the scope and course of their duties and employment.18
Section 2. R.S. 22:2303(D)(1) is hereby amended and reenacted to read as19
follows:20
§2303. Rates, rating plans, and rate rules applicable21
* * *22
D.(1) Notwithstanding the provisions of Paragraph (A)(1) of this Section,23
until August 15, 2010, the corporation shall charge the higher of (a) actuarially24
ACT No. 632 SB NO. 204 ENROLLED
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justified rates or (b) the highest rates charged among assessable insurers that have1
a minimum of two percent of the total direct written premium in each respective2
parish for that line of business in the preceding year, or, with respect to personal3
lines property insurance, excluding wind and hail policies, only, (c) the highest rates4
charged among assessable insurers in each respective parish which in the preceding5
year increased by at least twenty-five additional personal lines property insurance6
policies, excluding wind and hail policies, in such parish, the total number of such7
policies in effect for the parish over the year before, in any noncompetitive market8
unless competition resumes. If the corporation is writing more than fifty percent of9
the residential property insurance business in a market, including wind- and hail-only10
coverages, the board of directors shall report that fact to the commissioner of11
insurance. Notwithstanding any other provision of law to the contrary, until August12
15, 2011 2015, regardless of whether a competitive market may exist, the ten percent13
rate in excess of the higher of (a) the actuarially justified rate or (b) the highest rates14
charged among assessable insurers that have a minimum of two percent of the total15
direct written premium in each respective parish for that line of business in the16
preceding year, or, with respect to personal lines property insurance, excluding wind17
and hail policies, only, (c) the highest rates charged among assessable insurers in18
each respective parish which in the preceding year increased by at least twenty-five19
additional personal lines property insurance policies, excluding wind and hail20
policies, in such parish, the total number of such policies in effect for the parish over21
the year before, as authorized in Subsection A of this Section, shall not apply in St.22
Mary Parish and parishes listed in R.S. 40:1730.27(A).23
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Section 3. The provisions of Section 1 of this Act shall be given prospective25
application only and shall not affect any action pending or claim arising prior to the effective26
date of Section 1 of this Act.27
Section 4. Section 3 of this Act shall become effective upon signature by the28
governor or, if not signed by the governor, upon expiration of the time for bills to become29
law without signature by the governor, as provided by Article III, Section 18 of the30 SB NO. 204 ENROLLED
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Constitution of Louisiana. If vetoed by the governor and subsequently approved by the1
legislature, this Act shall become effective on the day following such approval.2
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: