HLS 18RS-733 ENGROSSED
2018 Regular Session
HOUSE BILL NO. 247
BY REPRESENTATIVE HUVAL
INSURANCE/SURPLUS LINE: Provides relative to types of coverage available under
surplus lines insurance
1 AN ACT
2To amend and reenact R.S. 22:46(introductory paragraph), (17) and (17.1), 433(A),
3 438(A)(3), 446, 1542(introductory paragraph) and (18), and 1547(I), relative to
4 surplus lines insurance; to define surplus lines insurance, surplus lines insurer, and
5 surplus lines broker; to require the filing of forms and rates of surplus lines insurers
6 in certain circumstances; to provide surplus lines broker licensure requirements; to
7 provide for an effective date; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 22:46(introductory paragraph), (17) and (17.1), 433(A), 438(A)(3),
10446, 1542(introductory paragraph) and (18), and 1547(I) are hereby amended and reenacted
11to read as follows:
12 §46. General definitions
13 In this Code, unless the context otherwise requires, the following definitions
14 are applicable apply:
15 * * *
16 (17) "Surplus lines insurance" means any property and casualty or health and
17 accident insurance in this state on property, risk, or exposure located or to be
18 performed in this state, permitted to be placed through a licensed surplus lines broker
19 with a surplus lines insurer.
Page 1 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-733 ENGROSSED
HB NO. 247
1 (17.1) "Surplus lines insurer" means an approved unauthorized insurer or
2 eligible unauthorized insurer, as defined in this Section, or a domestic surplus lines
3 insurer as provided in R.S. 22:436.1. "Surplus lines insurer" shall not include a
4 health maintenance organization.
5 * * *
6 §433. Endorsement of contract
7 A. Each surplus lines insurance policy or contract procured and delivered as
8 surplus lines coverage pursuant to this Subpart shall have the following notice:
9
10 NOTICE
11 This insurance policy is delivered as surplus lines coverage under the
12 Louisiana Insurance Code.
13 In the event of insolvency of the company issuing this contract, the
14 policyholder or claimant is not covered by the Louisiana Insurance Guaranty
15 Association or the Louisiana Life and Health Insurance Guaranty Association,
16 which guarantees only specific types of policies issued by insurance companies
17 authorized to do business in Louisiana.
18 This surplus lines policy has been procured by the following licensed
19 Louisiana surplus lines broker:
20 Signature of Licensed Louisiana Surplus Lines Broker
21 or Authorized Representative
22 Printed Name of Licensed Louisiana Surplus Lines Broker
23 * * *
24 §438. Acknowledgment of applicant for insurance
25 A. Any licensed surplus lines broker that procures a personal lines policy
26 with a surplus lines insurer shall obtain from the applicant for insurance no later than
27 the date of binding coverage, an acknowledgment on a standardized form
Page 2 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-733 ENGROSSED
HB NO. 247
1 promulgated by the commissioner of insurance which shall be maintained by the
2 licensed surplus lines broker. The acknowledgment shall verify that:
3 * * *
4 (3) In the event of insolvency of the insurer, losses shall not be paid by the
5 Louisiana Insurance Guaranty Association or the Louisiana Life and Health
6 Insurance Guaranty Association.
7 * * *
8 §446. Surplus lines insurance; exemption from form and rate filing and approval
9 Surplus lines insurers shall not be required to file or seek approval of their
10 forms and rates.
11 A. The commissioner shall not require surplus lines insurers to file or seek
12 approval of their forms and rates for property and casualty insurance except as
13 provided in R.S. 22:1456(B)(2) relative to public carrier vehicles.
14 B. The commissioner may require surplus lines insurers to file their forms
15 and rates for health and accident insurance, other than health stop loss and limited
16 benefit policies, when necessary to comply with federal laws or regulations.
17 * * *
18 §1542. Definitions
19 As used in this Subpart, unless the context requires otherwise, the following
20 definitions shall be applicable apply:
21 * * *
22 (18) "Surplus lines broker" shall mean an insurance producer who solicits,
23 negotiates, or procures a property and casualty policy with an insurance company not
24 licensed to transact business in the state which cannot be procured from insurers
25 licensed to do business in this state. a surplus lines insurer. All transactions entered
26 into under such license shall be subject to R.S. 22:431 et seq.
27 * * *
28 §1547. License
29 * * *
Page 3 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-733 ENGROSSED
HB NO. 247
1 I. Any licensed property and casualty or health and accident insurance
2 producer maintaining an office at a designated location in this state and having at
3 least two years experience in the insurance business with an insurer or as an
4 insurance producer may be licensed as a surplus lines broker as follows:
5 (1) The applicant must shall submit an application to the commissioner of
6 insurance for the license on forms approved by the commissioner.
7 (2) The applicant must shall submit the required license fee, as authorized
8 by R.S. 22:821, for each license year during any part of which the license is in effect.
9 The license shall remain in force until the biannual renewal date.
10 (3) The applicant shall pass an examination approved by the commissioner
11 of insurance.
12 * * *
13 Section 2. This Act shall become effective on January 1, 2019.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 247 Engrossed 2018 Regular Session Huval
Abstract: Adds health and accident insurance to types of coverage comprising surplus lines
insurance.
Present law defines surplus lines insurance as any property and casualty insurance in this
state on property, risk, or exposure located or to be performed in this state, permitted to be
placed through a licensed surplus lines broker with a surplus lines insurer.
Proposed law retains present law and expands the definition to include health and accident
insurance.
Present law defines surplus lines insurer as an approved unauthorized insurer or eligible
unauthorized insurer, or a domestic surplus lines insurer.
Proposed law retains present law and excludes health maintenance organizations from the
definition.
Present law requires notification that there is no guaranty fund coverage for surplus lines
policies.
Proposed law retains present law and adds to the required notice a statement that there is no
life and health guaranty fund coverage for surplus lines health and accident policies.
Page 4 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 18RS-733 ENGROSSED
HB NO. 247
Present law exempts surplus lines insurers from the requirement to file rates and forms with
the commissioner of insurance.
Proposed law retains present law but adds an exception for public carrier vehicles.
Proposed law permits the commissioner of insurance to require the filing of rates and forms
for health and accident policies other than health stop loss and limited benefit policies.
Present law defines a surplus lines broker as an insurance producer who solicits, negotiates,
or procures a property and casualty policy with an insurance company not licensed to
transact business in La. which cannot be procured from insurers licensed to do business in
La.
Proposed law eliminates the references to property and casualty to expand the definition to
all types of coverage available through surplus lines insurance.
Present law authorizes any licensed property and casualty insurance producer maintaining
an office at a designated location in this state and having at least two years experience in the
insurance business with an insurer or as an insurance producer to be licensed as a surplus
lines broker.
Proposed law expands the authorization to any licensed health and accident insurance
producers.
Effective Jan. 1, 2019.
(Amends R.S. 22:46(intro. para.), (17) and (17.1), 433(A), 438(A)(3), 446, 1542(intro. para.)
and (18), and 1547(I))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the
original bill:
1. Specify that a property and casualty or health and accident insurance producer
may qualify for licensure as a surplus lines broker.
Page 5 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.