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 818 Original 2020 Regular Session Zeringue
Abstract: Requires an insured to be evaluated individually to determine the insureds net worth
Present law defines "high net worth insured" for the purposes of present law as an insured with a net
worth greater than $25 million on Dec. 31 of the year before the year the insurer becomes insolvent
provided the insured's net worth on that date includes the aggregate net worth of the insured and all
of its subsidiaries and affiliates as calculated on a consolidated basis.
Present law requires the consolidated net worth to be calculated based on fair market value.
Present law prohibits members of a group self-insurance fund from being deemed affiliates of the
fund and from being included in the determination of the fund's net worth.
Present law requires a group self-insurance fund and the individual members of the fund who have
claims submitted on their behalf be deemed policyholders or named insureds of any policy issued
to the fund.
Proposed law retains present law, but adds that for the purposes of present law each named insured
is required to be evaluated individually to determine if the insured is a high net worth insured.
Proposed law also adds that an individual named insured under a group policy who is determined
to be a high net worth insured does not render the entire group policy excluded under present law.
(Amends R.S. 22:2061.1(A))