Morrish (SB 181) Act No. 114
Prior law permitted 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 to apply to the La. Citizens Property
Insurance Corporation to become a take-out company. Further provided that insurers will
be approved to participate in the depopulation of the corporation 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 prior 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 department for rates that are actuarially justified.
New 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))