ENROLLED
ACT No. 7
2018 Regular Session
HOUSE BILL NO. 247
BY REPRESENTATIVE HUVAL
1 AN ACT
2 To 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.
8 Be 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),
10 446, 1542(introductory paragraph) and (18), and 1547(I) are hereby amended and reenacted
11 to 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.
20 (17.1) "Surplus lines insurer" means an approved unauthorized insurer or
21 eligible unauthorized insurer, as defined in this Section, or a domestic surplus lines
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1 insurer as provided in R.S. 22:436.1. "Surplus lines insurer" shall not include a
2 health maintenance organization.
3 * * *
4 §433. Endorsement of contract
5 A. Each surplus lines insurance policy or contract procured and delivered as
6 surplus lines coverage pursuant to this Subpart shall have the following notice:
7
8 NOTICE
9 This insurance policy is delivered as surplus lines coverage under the
10 Louisiana Insurance Code.
11 In the event of insolvency of the company issuing this contract, the
12 policyholder or claimant is not covered by the Louisiana Insurance Guaranty
13 Association or the Louisiana Life and Health Insurance Guaranty Association,
14 which guarantees only specific types of policies issued by insurance companies
15 authorized to do business in Louisiana.
16 This surplus lines policy has been procured by the following licensed
17 Louisiana surplus lines broker:
18
19 Signature of Licensed Louisiana Surplus Lines Broker
20 or Authorized Representative
21
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
28 promulgated by the commissioner of insurance which shall be maintained by the
29 licensed surplus lines broker. The acknowledgment shall verify that:
30 * * *
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1 (3) In the event of insolvency of the insurer, losses shall not be paid by the
2 Louisiana Insurance Guaranty Association or the Louisiana Life and Health
3 Insurance Guaranty Association.
4 * * *
5 §446. Surplus lines insurance; exemption from form and rate filing and approval
6 Surplus lines insurers shall not be required to file or seek approval of their
7 forms and rates.
8 A. The commissioner shall not require surplus lines insurers to file or seek
9 approval of their forms and rates for property and casualty insurance except as
10 provided in R.S. 22:1456(B)(2) relative to public carrier vehicles.
11 B. The commissioner may require surplus lines insurers to file their forms
12 and rates for health and accident insurance, other than health stop loss and limited
13 benefit policies, when necessary to comply with federal laws or regulations.
14 * * *
15 §1542. Definitions
16 As used in this Subpart, unless the context requires otherwise, the following
17 definitions shall be applicable apply:
18 * * *
19 (18) "Surplus lines broker" shall mean an insurance producer who solicits,
20 negotiates, or procures a property and casualty policy with an insurance company not
21 licensed to transact business in the state which cannot be procured from insurers
22 licensed to do business in this state. a surplus lines insurer. All transactions entered
23 into under such license shall be subject to R.S. 22:431 et seq.
24 * * *
25 §1547. License
26 * * *
27 I. Any licensed property and casualty or health and accident insurance
28 producer maintaining an office at a designated location in this state and having at
29 least two years experience in the insurance business with an insurer or as an
30 insurance producer may be licensed as a surplus lines broker as follows:
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1 (1) The applicant must shall submit an application to the commissioner of
2 insurance for the license on forms approved by the commissioner.
3 (2) The applicant must shall submit the required license fee, as authorized
4 by R.S. 22:821, for each license year during any part of which the license is in effect.
5 The license shall remain in force until the biannual renewal date.
6 (3) The applicant shall pass an examination approved by the commissioner
7 of insurance.
8 * * *
9 Section 2. This Act shall become effective on January 1, 2019.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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