ENROLLED
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Regular Session, 2013
HOUSE BILL NO. 543
BY REPRESENTATIVE PIERRE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To amend and reenact R.S. 22:46(2) and (17), 431, 432, 433, 435, 436, 438, and 439(F) and2
to enact R.S. 22:46(7.1) and (8.1), relative to surplus lines insurance; to authorize3
placement of insurance with a surplus lines insurer without regard to the availability4
of authorized insurance; to provide relative to capital, surplus, bond, and deposit5
requirements; to provide with respect to the list of surplus lines insurers maintained6
by the commissioner of insurance; to provide relative to certain notices to applicants7
for insurance regarding placement of personal lines policies with surplus lines8
insurers; to provide for applicability; and to provide for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 22:46(2) and (17), 431, 432, 433, 435, 436, 438, and 439(F) are11
hereby amended and reenacted and R.S. 22:46(7.1) and (8.1) are hereby enacted to read as12
follows:13
§46. General definitions14
In this Code, unless the context otherwise requires, the following definitions15
shall be applicable:16
* * *17
(2) "Approved unauthorized insurer" means an insurer without a certificate18
of authority, or otherwise qualified under the provisions of this Code, and which that19
meets the eligibility criteria of R.S. 22:435(A)(2) and (B) and is on the list of20
approved unauthorized insurers under the provisions of R.S. 22:436, and from which21 ENROLLEDHB NO. 543
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a licensed surplus lines broker may procure insurance under the provisions of R.S.1
22:432.2
* * *3
(7.1) "Eligible unauthorized insurer" means an insurer without a certificate4
of authority, or otherwise qualified under the provisions of this Code, that meets the5
eligibility criteria of R.S. 22:435(A)(2) and (B) and from which a licensed surplus6
lines broker may procure insurance under the provisions of R.S. 22:432.7
* * *8
(8.1)(a) "Home state" means, with respect to an insured on a surplus lines9
insurance policy, one of the following:10
(i) The state in which an insured maintains its principal place of business or,11
in the case of an individual, the individual's principal residence.12
(ii) If one hundred percent of the insured risk is located out of the state13
referred to in Item (i) of this Subparagraph, the state to which the greatest percentage14
of the insured's taxable premium for that insurance contract is allocated.15
(iii) If more than one insured from an affiliated group are named insureds on16
a single surplus lines insurance contract, the state, as determined pursuant to Item (i)17
or (ii) of this Subparagraph, of the member of the affiliated group that has the largest18
percentage of premium attributed to it under the surplus lines insurance contract.19
(b) The home state as determined in Subparagraph (a) of this Paragraph is20
the state that has sole statutory and regulatory jurisdiction over the placement of21
surplus lines insurance pursuant to 15 U.S.C. 8202 and the exclusive authority to22
require the payment of any premium tax on surplus lines insurance pursuant to 1523
U.S.C. 8201.24
* * *25
(17) "Surplus lines insurance" means any property and casualty insurance26
in this state on properties, risks, or exposures property, risk, or exposure located or27
to be performed in this state, permitted to be placed through a licensed surplus lines28
broker with an approved unauthorized insurer or eligible unauthorized insurer.29
* * *30 ENROLLEDHB NO. 543
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§431. Purpose; necessity for regulation1
This Subpart shall be liberally construed and applied to promote its2
underlying purposes which include:3
(1) Protecting persons seeking insurance in this state.4
(2) Permitting Facilitating the placement of surplus lines insurance to be5
placed with reputable and financially sound unauthorized insurers under the6
provisions of this Subpart.7
(3) Establishing a system of regulation which will permit that permits8
orderly access to surplus lines insurance in this state and encourage encourages9
authorized insurers to provide make new and innovative types of insurance available10
to consumers in this state.11
(4) Providing a system through which persons may purchase insurance other12
than surplus lines insurance, from approved unauthorized insurers or eligible13
unauthorized insurers pursuant to this Subpart.14
(5) Protecting the revenues of this state.15
(6) Providing a system pursuant to this Subpart which that subjects16
unauthorized insurance activities in this state to the jurisdiction of the insurance17
commissioner of insurance and state and federal courts in suits by or on behalf of the18
state.19
§432. Surplus lines insurance from unauthorized insurers20
If certain insurance coverages cannot be procured from authorized insurers,21
such coverages, hereinafter designated as "surplus Surplus lines", insurance, as22
defined in R.S. 22:46(17), may be procured from approved unauthorized insurers or23
eligible unauthorized insurers, provided that the insurance is as defined in R.S.24
22:46(2) and (7.1) and sometimes referred to in this Title as "surplus lines insurers".25
It shall be procured through a licensed surplus lines broker. brokers and may be26
procured without regard to the availability of coverage from authorized insurers.27
§433. Endorsement of contract28
A. Every Each insurance policy or contract procured and delivered as surplus29
lines coverage pursuant to this Subpart shall have stamped or printed upon it and be30 ENROLLEDHB NO. 543
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signed by the surplus lines broker who procured it, in bold type and the face of which1
shall not be less than ten-point type, the following: notice:2
3
NOTICE4
This insurance policy is delivered as surplus lines coverage under the Louisiana5
Insurance Code. of the State of Louisiana.6
In the event of insolvency of the company issuing this contract, the policyholder7
or claimant is not covered by the Louisiana Insurance Guaranty Association which8
guarantees only specific types of policies issued by an insurance company companies9
authorized to do business in Louisiana.10
This surplus lines policy has been procured by the following licensed Louisiana11
surplus lines broker:12
Signature of Licensed Louisiana Surplus Lines Broker13
or Authorized Representative14
Printed Name of Licensed Louisiana Surplus Lines Broker15
B. The notice required under pursuant to Subsection A of this Section shall,16
whether stamped or printed, be: distinguished in either one of the following ways:17
(1) The notice shall be prominently Prominently displayed in the color red.18
or prominently offset by a black border.19
(2) If the notice is printed Printed or stamped in the color black, it shall be20
prominently offset by a black border. on the policy or contract in bold and in not less21
than ten-point type.22
(3) Signed by the surplus lines broker who procured the policy or contract.23
* * *24
§435. Surplus lines in solvent insurers; capital and surplus requirements; deposits25
and bond requirements Solvency and eligibility requirements26
A.(1) A surplus lines broker shall not knowingly place surplus lines27
insurance only with surplus lines insurers unsound financially. that are:28 ENROLLEDHB NO. 543
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(1) Financially sound.1
(2) Each insurer is authorized Authorized to write the type of insurance in2
its their domiciliary jurisdiction. jurisdictions to write the type of insurance placed.3
(3) The full amount or type of insurance cannot be obtained from insurers4
who are authorized to do business in this state. In addition to the other requirements5
of this Subpart, including but not limited to R.S. 22:432 and 438, the full amount or6
type of insurance may be procured from an approved unauthorized insurer, provided7
that a diligent search is made among the insurers who are authorized to transact8
business and are actually writing the particular type of insurance in this state if any9
are writing it.10
B. The surplus lines broker shall not so insure with any insurer unless the11
insurer has met the requirements of R.S. 22:436, unless otherwise provided by law,12
has established satisfactory evidence of good repute and financial integrity, and has13
done the following: A surplus lines broker shall not place coverage with a surplus14
lines insurer, unless, at the time of placement, the surplus lines broker has15
determined that the surplus lines insurer qualifies under one of the following16
Paragraphs:17
(1)(a) If it is a foreign insurer that it has capital and surplus or its equivalent18
under the laws of its domiciliary jurisdiction which equals the greater of:19
(a) Has capital and surplus of not less than fifteen million dollars exclusive20
of either surplus debentures or subordinated notes if a stock insurer, or surplus of not21
less than fifteen million dollars exclusive of either surplus debentures or22
subordinated notes if any other type insurer, and has on deposit with the23
commissioner of insurance a safekeeping or trust receipt from a bank or a savings24
and loan association doing business within Louisiana, indicating that one hundred25
thousand dollars in money, or approved bonds of the United States government, the26
state of Louisiana, or any political subdivision thereof, or in lieu of such deposit has27
delivered to the commissioner of insurance a bond in the amount of one hundred28
thousand dollars issued by an authorized surety company doing business in this state29
and approved by the commissioner of insurance.30 ENROLLEDHB NO. 543
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(b) Such deposit or surety bond shall be conditioned for the prompt payment1
of all claims arising and accruing to any person by virtue of any policy issued by any2
such unauthorized insurer upon any property or other risk situated in this state, and3
to be held subject to any claims, liens or judgments that may be judicially obtained4
against any such company in the courts of this state, or arising from any contract of5
insurance, or indemnity, or fidelity, or guaranty entered into in this state, and shall6
be liable to seizure and sale at the instance of any judgment creditor of such insurer,7
under judgment obtained in any of the courts of this state or in any of the federal8
courts of this state.9
(c) No surety bond furnished as provided herein shall be cancelled unless a10
new bond or deposit has been substituted or satisfactory evidence has been submitted11
to the commissioner of insurance that the insurer has discharged all of its assured12
obligations and liabilities in this state, and that it has no assessed liabilities whatever13
remaining in this state. The term of these bonds shall be for one year ending March14
first, but the last bond filed shall always remain in effect until a new bond is filed or15
a deposit is made as a substitution therefor. Withdrawal of any bond or deposit16
required herein may be made only upon the approval by the commissioner of17
insurance.18
(i) The minimum capital and surplus requirements under the laws of this19
state.20
(ii) Fifteen million dollars.21
(d) (b) The requirements of Subparagraph (a) of this Paragraph, with respect22
only to capital and surplus, may be satisfied by an insurer's possessing less than the23
minimum capital and surplus upon an affirmative finding of acceptability by the24
commissioner. If the commissioner finds such acceptable, the finding shall be in25
effect for a one-year period and shall be applied for annually thereafter to be renewed26
on an annual basis, unless the finding is revoked by the commissioner. The finding27
shall be based upon such factors as quality of management, capital and surplus of28
any parent company, company underwriting profit and investment income trends,29
market availability, and company record and reputation within the industry. In no30 ENROLLEDHB NO. 543
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event shall the commissioner make an affirmative finding of acceptability when the1
nonadmitted an unauthorized insurer's capital and surplus is less than four million2
five hundred thousand dollars.3
(e) In the case of an insurance exchange created by the laws of a state other4
than this state:5
(I) The syndicates of the exchange shall maintain under terms acceptable to6
the commissioner capital and surplus, or its equivalent under the laws of its7
domiciliary jurisdiction, of not less than seventy-five million dollars in the aggregate.8
(ii) The exchange shall maintain under terms acceptable to the commissioner9
not less than fifty percent of the policyholder surplus of each syndicate in a custodial10
account accessible to the exchange or its domiciliary commissioner in the event of11
insolvency or impairment of the individual syndicate.12
(iii) In addition, each individual syndicate to be eligible to accept surplus13
lines insurance placements from this state shall meet either of the following14
requirements: For insurance exchanges which maintain funds in an amount of not15
less than fifteen million dollars for the protection of all exchange policyholders, the16
syndicate shall maintain under terms acceptable to the commissioner minimum17
capital and surplus, or its equivalent under the laws of the domiciliary jurisdiction,18
of not less than five million dollars; or for insurance exchanges which do not19
maintain funds in an amount of not less than fifteen million dollars for the protection20
of all exchange policyholders, the syndicate shall maintain under terms acceptable21
to the commissioner minimum capital and surplus, or its equivalent under the laws22
of its domiciliary jurisdiction, of not less than the minimum capital and surplus23
requirements under the laws of its domiciliary jurisdiction or fifteen million dollars,24
whichever is greater.25
(2) If it is an alien Lloyd's plan or other similar group of insurers, which26
consists of unincorporated individual insurers, or a combination of both27
unincorporated and incorporated insurers:28
(a) The plan or group maintains in the United States a trust or trusts equal to29
thirty percent of the group's United States surplus lines gross liabilities excluding30 ENROLLEDHB NO. 543
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those types of insurance liabilities set forth in R.S. 22:1903(C)(4), not to exceed five1
hundred million dollars; however, after notice and an opportunity to be heard, the2
commissioner may require that the trust or trusts equal an amount in excess of five3
hundred million dollars if he finds such higher amount to be reasonably necessary4
to protect the interests of the public and policyholders of this state.5
(b) In addition, the group shall maintain in trust a surplus in the amount of6
one hundred million dollars, which shall be available for the benefit of United States7
surplus lines policyholders of any member of the group.8
(c) The incorporated members of the group shall not be engaged in any9
business other than underwriting as a member of the group and shall be subject to the10
same level of solvency regulation and control by the group's domiciliary regulator11
as are the unincorporated members.12
(d) The trust funds shall be maintained in an irrevocable trust account in the13
United States in a qualified financial institution, consisting of cash, securities, letters14
of credit, or investments of substantially the same character and quality as those15
which are eligible investments for the capital and statutory reserves of authorized16
insurers to write like kinds of insurance in this state and, in addition, the trust17
required by Subparagraph (b) of this Paragraph shall satisfy the requirements of the18
standard trust agreement required for listing with the International Insurers19
Department of the National Association of Insurance Commissioners.20
(3) In the case of a group of incorporated alien insurers under common21
administration, which has continuously transacted an insurance business outside the22
United States for at least three years immediately prior to December 31, 1997, and23
which submits to this state's authority to examine its books and records and bears the24
expense of the examination:25
(a) The group shall maintain an aggregate policyholders' surplus of ten26
billion dollars.27
(b) The group shall maintain in trust a surplus in the amount of one hundred28
million dollars. The surplus shall be available for the benefit of United States29
surplus lines policyholders of any member of the group.30 ENROLLEDHB NO. 543
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(c) Each insurer shall individually maintain capital and surplus of not less1
than twenty-five million dollars per company.2
(d) The trust funds shall satisfy the requirements of the Standard Trust3
Agreement requirement for listing with the International Insurers Department of the4
National Association of Insurance Commissioners and shall be maintained in an5
irrevocable trust account in the United States in a qualified financial institution, and6
shall consist of cash, securities, letters of credit, or investments of substantially the7
same character and quality as those which are eligible investments for the capital and8
statutory reserves of admitted insurers to write like kinds of insurance in this state.9
(e) Additionally, each member of the group shall make available to the10
commissioner an annual certification of the solvency of the member by the11
domiciliary regulator of the member and its independent public accountant.12
(4) Except for an exchange or plan complying with Subparagraph (B)(1)(e)13
or Paragraph (B)(2) or (B)(3) of this Section, an alien insurer shall satisfy the capital14
and surplus requirements of Subparagraphs (B)(1)(a) through (d) of this Section and15
shall have in force a trust fund of not less than the greater of:16
(a) Five million four hundred thousand dollars.17
(b) Thirty percent of the United States surplus lines gross liabilities, which18
does not include those types of insurance liabilities set forth in R.S. 22:1903(C)(4),19
not to exceed sixty million dollars, to be determined annually on the basis of20
accounting practices and procedures substantially equivalent to those promulgated21
by this state, as of December thirty-first next preceding the date of determination,22
where:23
(I) The liabilities are maintained in an irrevocable trust account in the United24
States in a qualified financial institution, on behalf of United States policyholders25
consisting of cash, securities, letters of credit, or other investments of substantially26
the same character and quality as those which are eligible investments pursuant to27
R.S. 22:584 et seq. for the capital and statutory reserves of admitted insurers to write28
like kinds of insurance in this state. The trust fund, which shall be included in any29
calculation of capital and surplus or its equivalent, shall satisfy the requirements of30 ENROLLEDHB NO. 543
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the Standard Trust Agreement required for listing with the International Insurers1
Department of the National Association of Insurance Commissioners.2
(ii) The insurer may request approval from the commissioner to use the trust3
fund to pay valid surplus lines claims. The balance of the trust fund shall never be4
less than the greater of five million four hundred thousand dollars or thirty percent5
of the current gross United States surplus lines liabilities of the insurer, excluding6
those types of liabilities set forth in R.S. 22:1903(C)(4).7
(iii) In calculating the trust fund amount required by this Paragraph, credit8
shall be given for surplus lines deposits separately required and maintained for a9
particular state or United States territory, not to exceed the amount of the loss and10
loss adjustment reserves of the insurer in the particular state or territory.11
(6) (2)(a) In addition to all of the other requirements of this Section, If it is12
an alien insurer, not domiciled in the United States or its territories it shall be listed13
by the International Insurers Department of the National Association of Insurance14
Commissioners. on its Quarterly Listing of Alien Insurers.15
(b) The commissioner may waive the requirement in Subparagraph (a) of this16
Paragraph or the requirements of Subparagraph (B)(4)(b) of this Section upon an17
affirmative finding of the insurer's meeting the requirements for capital and surplus18
or acceptability by the commissioner if the commissioner is satisfied that the19
placement of insurance with the insurer is necessary and will not be detrimental to20
the public and the policyholder. In determining whether business may be placed21
with the insurer, the commissioner may consider such factors as: pursuant to22
Paragraph (1) of this Subsection.23
(a) The interests of the public and policyholders.24
(b) The length of time the insurer has been authorized in its domiciliary25
jurisdiction and elsewhere.26
(c) Unavailability of particular coverages from authorized insurers or27
unauthorized insurers meeting the requirements of this Section.28
(d) The size of the company as calculated by its assets, capital and surplus,29
reserves, premium writings, insurance in force or other appropriate criteria; the kinds30 ENROLLEDHB NO. 543
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of business the company writes, its net exposure and the extent to which the business1
of the company is diversified among several lines of insurance and geographic2
locations.3
(e) The past and projected trend in the size of the company's capital and4
surplus of the company considering such factors as premium growth, operating5
history, loss and expense ratios, or other appropriate criteria.6
(7) Has caused to be provided to the commissioner a copy of its current7
annual statement certified by the insurer and an actuarial opinion as to the adequacy8
of, and methodology used to determine, the loss reserves of the insurer. The9
statement shall be provided at the same time it is provided to the insurer's domicile,10
but in no event more than eight months after the close of the period reported upon,11
and shall be certified as a true and correct copy by an accounting or auditing firm12
licensed in the jurisdiction of the insurer's domicile and certified by a senior officer13
of the unauthorized insurer as a true and correct copy of the statement filed with the14
regulatory authority in the domicile of the unauthorized insurer. In the case of an15
insurance exchange qualifying under Subparagraph (B)(1)(e) of this Section, the16
statement may be an aggregate combined statement of all underwriting syndicates17
operating during the period reported.18
D. C. In addition to any other statements or reports required by this Subpart,19
the commissioner of insurance may request from any surplus lines broker full and20
complete information respecting the financial stability, reputation , and integrity of21
any unauthorized insurer with whom any such surplus lines broker has dealt, or22
proposes to deal, in the transaction of insurance business. The surplus lines broker23
shall promptly furnish in written or printed form so much of the information24
requested as he can produce. The commissioner of insurance, if he believes it to be25
in the public interest, may order such surplus lines broker in writing to place no26
further insurance business on Louisiana risks through such unauthorized company.27
H.(1) Notwithstanding any law to the contrary, no person shall act in this28
state as producer for or broker to any unauthorized insurer which has not been29 ENROLLEDHB NO. 543
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approved by the Department of Insurance in accordance with this Section and R.S.1
22:436, unless the following criteria are met:2
(a) The insurance is limited to commercial property and liability, including3
commercial marine.4
(b) The insurance coverage is excess coverage and the attachment point is5
at least twenty five million dollars for property and ten million dollars for liability6
or such other amount as the Department of Insurance in its discretion shall require.7
(c) Approval from the Department of Insurance is required for each policy.8
(d) The insured has been informed in writing by the agent or broker that the9
insurer has not been approved by the Department of Insurance.10
(2) The commissioner by regulation or directive, may require that the insured11
meet minimum financial requirements and may require certification from the12
producer or broker that the insurer meets the financial and any other requirements13
promulgated by the Department of Insurance for insurance coverage by an14
unauthorized insurer which has not been approved by the Department of Insurance15
under this Section and R.S. 22:436.16
§436. Approved unauthorized insurers; list; requirements; removal17
A. No surplus lines broker shall place surplus lines insurance with an insurer18
who is not on the list of approved unauthorized insurers as compiled and maintained19
by the commissioner of insurance. The commissioner of insurance shall maintain a20
list of approved unauthorized insurers from those eligible unauthorized insurers that21
apply for approval and satisfy the criteria established by the commissioner.22
Placement on the list of approved unauthorized insurers shall be prima facie evidence23
that an unauthorized insurer meets the financial and eligibility criteria of R.S.24
22:435(A) and (B).25
B.(1) To obtain and maintain placement on the list of approved unauthorized26
insurers, a foreign an unauthorized insurer shall comply with the provisions of R.S.27
22:435 applicable to foreign or alien insurers, respectively, and shall annually file28
with the commissioner the following , unless available to the commissioner through29
the NAIC or from public sources:30 ENROLLEDHB NO. 543
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(a) (1) A copy of the insurer's annual statement, signed and sworn to by its1
president and secretary as to its condition as of the preceding December thirty-first,2
evidencing that the insurer has capital and surplus of not less than fifteen million3
dollars exclusive of either surplus debentures or subordinated notes, and complied4
with the provisions of R.S. 22:435(B)(7)..5
(b) Evidence that the amount of net premiums written does not exceed four6
times the insurer's capital and surplus.7
(c) (2) Evidence that, if the insurer issues workers' compensation insurance8
in this state, it has established and maintained a workers' compensation claims office9
pursuant to R.S. 23:1161.1 or has retained a licensed claims adjuster.10
(d) (3) A copy of the producer production report in a form required by the11
commissioner listing all business placed with the company by licensed surplus lines12
brokers. The report shall be filed with the Department of Insurance commissioner13
no later than April fifteenth of each year.14
(2) An insurer that fails to file a copy of its annual statement on or before15
March first of each year shall be removed from the list of approved unauthorized16
insurers. The commissioner may grant an extension, not to exceed thirty days, if17
presented with satisfactory evidence showing the reasonableness of the extension.18
C. To obtain and maintain placement on the list of approved unauthorized19
insurers, an alien insurer shall comply with the provisions of R.S. 22:435 applicable20
to alien insurers including but not limited to the provisions of R.S. 22:435(B)(7), and21
the commissioner may require an alien insurer to file a copy of the producer22
production report in a form prescribed by the commissioner listing all business23
placed with the company by licensed surplus lines brokers. The report shall be filed24
with the Department of Insurance no later than April fifteenth of each year. The25
commissioner shall remove any alien insurer from the list of approved unauthorized26
insurers if it ceases to comply with the provisions of R.S. 22:435 applicable to alien27
insurers, or if he determines that continued placement of surplus lines insurance with28
the insurer would not be in the best interest of the policyholders or citizens of29
Louisiana.30 ENROLLEDHB NO. 543
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D. The commissioner shall remove a foreign insurer from the list of1
approved unauthorized insurers if:2
(1) The insurer does not have capital and surplus of at least fifteen million3
dollars exclusive of surplus debentures and subordinated notes, as determined by his4
examiners.5
(2) It is determined that the continued placement of surplus lines insurance6
with the insurer would not be in the best interest of the policyholders or the citizens7
of Louisiana.8
E. C. The commissioner may remove a foreign insurer from the list of an9
approved unauthorized insurers insurer from the list if:10
(1) The amount of net premiums written exceeds four times the insurer's11
capital and surplus. The insurer fails to pay any required fee.12
(2) The insurer fails to deliver any information requested by the13
commissioner within thirty days.14
(3) The insurer issues workers' compensation insurance within the state, and15
fails to establish and maintain a workers' compensation claims office pursuant to16
R.S. 23:1161.1 or fails to retain a licensed claims adjuster.17
F.(1) The commissioner may declare an approved unauthorized insurer18
ineligible if at anytime he determines any of the following:19
(a) (4) The insurer is in unsound financial condition or has acted in an20
untrustworthy manner.21
(b) (5) The insurer no longer satisfies the requirements set forth in R.S.22
22:435.23
(c) (6) The insurer has willfully violated the laws of this state.24
(d) (7) The insurer does not conduct a proper conducts improper claims25
practice. practices, including but not limited to unfair trade practices as defined in26
Part IV of Chapter 7 of this Title, R.S. 22:1961 et seq.27
G. D. Upon removing an insurer from the list of approved unauthorized28
insurers, the commissioner shall notify the insurer and all licensed surplus lines29
brokers of such action in writing. Such notice to licensed surplus lines brokers may,30 ENROLLEDHB NO. 543
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at the option of the surplus lines broker, be sent by the commissioner via electronic1
mail.2
H. E. The commissioner shall have the authority to adopt and promulgate3
such rules and regulations as are necessary to carry out the provisions of this Section4
in accordance with the Administrative Procedure Act.5
* * *6
§438. Proof of uninsurability; affidavit Acknowledgment of applicant for insurance7
A. Any licensed surplus lines broker that procures a personal lines policy8
with an approved unauthorized insurer or eligible unauthorized insurer shall obtain9
from the duly licensed submitting producer or broker within thirty days of applicant10
for insurance no later than the date of binding an affidavit coverage, an11
acknowledgment on a standardized form promulgated by the commissioner of12
insurance which shall be maintained by the licensed surplus lines broker. that attests13
to the diligent efforts of the producer or broker to place insurance coverage with14
admitted insurers and the results thereof. The affidavit acknowledgment shall affirm15
verify that:16
(1) the insured applicant for insurance The applicant for insurance was17
expressly advised prior to placement of the surplus lines insurance.18
(2) that the surplus lines insurer with whom the The insurance is being may19
be placed is with an approved unauthorized insurer or eligible unauthorized insurer.20
(3) and that in In the event of insolvency of the insurer, losses shall not be21
paid by the state insurance guaranty fund, Louisiana Insurance Guaranty Association.22
(4) The applicant for insurance expressly authorizes the procurement of23
surplus lines insurance coverage.24
(5) and that the The coverage is being procured through a duly licensed25
Louisiana surplus lines broker.26
B. As long as the personal lines policy continues to be renewed by the same27
approved unauthorized insurer or eligible unauthorized insurer, there shall not be a28
need for new affidavits acknowledgments at each renewal. At renewal, if the29
personal lines policy is placed with a different approved unauthorized insurer or30 ENROLLEDHB NO. 543
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eligible unauthorized insurer, then the procurement of a new affidavit will1
acknowledgment shall be secured obtained in the manner outlined in Subsection A2
of this Section.3
* * *4
§439. Tax on surplus lines5
* * *6
F. The home state of the insured for purposes of this Section shall be as7
defined in R.S. 22:46(8.1) the Nonadmitted and Reinsurance Reform Act of 2010 (158
U.S.C. 8206(6)).9
* * *10
Section 2. This Act shall become effective upon signature by the governor or, if not11
signed by the governor, upon expiration of the time for bills to become law without signature12
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If13
vetoed by the governor and subsequently approved by the legislature, this Act shall become14
effective on the day following such approval.15
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: