The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Cheryl Horne.
DIGEST
Morrish (SB 181)
Present law permits each insurer admitted to write homeowners' insurance or insurance insuring
one- or two-family owner occupied premises for fire and allied lines or insurance which covers
commercial structures in the state of La. to apply to the La. Citizens Property Insurance
Corporation to become a take-out company. Further provides that insurers will be approved to
participate in the depopulation of Citizens based on the following criteria:
(1)The capacity of the insurer to absorb the policies proposed to be taken out of the
corporation and the concentration of risks of those policies.
(2)An insurer shall have the rates proposed to be charged for the policies being taken out,
filed, and approved by the Dept. of Insurance with an effective date prior to the
assumption of policies.
(3)The rates that are charged by the company submitting a take-out plan must comply with
present law in the first year that the company charges premiums to the customer. During
the second and all subsequent years of coverage, the take-out company shall apply to the
Dept. for rates that are actuarially justified.
Proposed law provides that during the second and third years of coverage only, the take-out
company shall apply to the Dept. of Insurance for rates that are actuarially justified.
Effective August 1, 2014.
(Amends R.S. 22:2314(C)(3))