GREEN SHEET REDIGEST
HB 520 2016 Regular Session Chad Brown
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
INSURANCE: Provides for deposits made by certain foreign insurers applying for
admission in Louisiana
DIGEST
Present law requires a foreign or alien insurer seeking a certificate of authority to transact
business in Louisiana prepare and deliver to the commissioner a certificate from the proper
official in the domiciliary state of the foreign insurer showing that a deposit has been made
in the insurer's domiciliary state of not less than $100,000.
Proposed law retains present law and requires the certificate to indicate that deposit has been
made in the insurer's domiciliary state of not less than $100,000 in compliance with the laws
of that state.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 22:332(A)(13))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the original
bill:
1. Makes technical changes.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Insurance to the engrossed
bill
1. Removes the requirement for a supplemental deposit for the benefit of
policyholders and creditors.
2. Removes the ability of a company to deposit with the commissioner a
safekeeping or trust receipt from a bank doing business within the state or from
a savings and loan association indicating that $100,000 in money or bonds has
been made for the benefit and protection of policyholders and creditors of the
insurer in lieu of a deposit of $100,000 in the domiciliary state.
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Prepared by Cheryl Cooper.