2016 Regular Session ENROLLED
SENATE BILL NO. 185
BY SENATOR MORRISH
1 AN ACT
2 To amend and reenact R.S. 9:3550(B), relative to insurance premium finance companies; to
3 provide with respect to premium finance agreements which may also include a loan
4 agreement with the policyholder for wind mitigation retrofits to the insured property;
5 and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 9:3550(B) is hereby amended and reenacted to read as follows:
8 ยง3550. Insurance premium finance companies
9 * * *
10 B. For purposes of this Section:
11 (1) "Insurance premium finance company" means a person engaged in the
12 business of entering into premium finance agreements.
13 (2) "License" means an insurance premium finance company holding a
14 license issued under this Section.
15 (3) "Person" includes an individual, limited liability company, partnership,
16 association, business corporation, nonprofit corporation, common law trust,
17 joint-stock company, or any other group of individuals however organized.
18 (4) "Premium finance agreement" means an agreement by which an insured
19 or prospective insured promises to pay to an insurance premium finance company
20 the amount advanced or to be advanced under the agreement to an insurer or to an
21 insurance agent or broker in payment of premiums on an insurance contract together
22 with a service charge as authorized and limited by this Section. With respect to
23 qualified homeowners' insurance policies, a premium finance agreement may
24 also include a separate loan agreement with the policyholder for wind
25 mitigation retrofits to the insured property. In order to qualify, the
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 185 ENROLLED
1 homeowners' insurance policy shall be issued to a homeowner who has financed
2 the cost of wind mitigation retrofits with a consumer finance company licensed
3 pursuant to this Chapter, in part, for the purpose of obtaining wind mitigation
4 and other credits on his homeowners' insurance policy. Upon cancellation,
5 expiration, or nonrenewal of the qualifying homeowners' insurance policy, the
6 wind mitigation loan agreement shall continue to be administered pursuant to
7 its terms until paid in full and any cancellation, expiration, or nonrenewal of the
8 qualifying homeowners' insurance policy shall not accelerate the due date of
9 such wind mitigation loan. A premium finance agreement shall not include an
10 agreement on the part of an extender of credit to finance credit life, credit disability,
11 and credit property insurance coverage as an incident to a consumer credit
12 transaction subject to this Chapter or subject to any other applicable provision of
13 Louisiana or federal law.
14 * * *
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.