HLS 231ES-1 ENGROSSED
2023 First Extraordinary Session
HOUSE BILL NO. 1
BY REPRESENTATIVE ZERINGUE
APPROPRIATIONS/GENERAL: Appropriates funding for the Insure Louisiana Incentive
Program
1 AN ACT
2To appropriate funds for Fiscal Year 2022-2023, relative to the Insure Louisiana Incentive
3 Program; to impose restrictions on the use of such appropriation; to require reports
4 relative to the use of such appropriation; to direct the state treasurer to transfer
5 certain sums into the program fund for the execution of the appropriation; to provide
6 for an effective date; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. The following sum is hereby appropriated from the source specified for the
9purpose of making a supplemental appropriation for Fiscal Year 2022-2023 to the
10Department of Insurance.
11 ELECTED OFFICIALS
12 DEPARTMENT OF INSURANCE
04-165 COMMISSIONER OF INSURANCE 13
14EXPENDITURES:
15Administrative/Fiscal Program for the Insure
16Louisiana Incentive Program $45,000,000
17 TOTAL EXPENDITURES $45,000,000
18MEANS OF FINANCE:
19State General Fund by:
20 Statutory Dedications:
21 Insure Louisiana Incentive Fund $45,000,000
22 TOTAL MEANS OF FINANCING $45,000,000
23Provided, however, that funds appropriated herein to the Administrative/Fiscal Program for
24the Insure Louisiana Incentive Program, shall be used to award grants only to insurers
25licensed in Louisiana possessing a minimum financial strength rating of AM Best "B+" or
26a Demotech financial stability rating of "A". Any nonadmitted insurer applying for a grant
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HB NO. 1
1pursuant to the Insure Louisiana Incentive Program shall have a minimum financial strength
2rating of AM Best "A".
3Provided further that the commissioner shall expedite to the greatest extent possible the
4approval of certificates of authority, rate filings, form filings, and other necessary regulatory
5approvals of qualified insurers to facilitate the underwriting of new policies pursuant to the
6program as quickly as possible and shall monitor the financial solvency of insurers that are
7issued a grant pursuant to the program. Such monitoring shall include an evaluation of the
8adequacy of insurer reinsurance programs using catastrophe model stress tests against the
9insurer's book of business. The commissioner shall take whatever action is necessary to
10ensure that insurers receiving grants pursuant to the program remain financially solvent.
11Provided further that the commissioner shall submit annual and quarterly reports on the
12Insure Louisiana Incentive Program to the House Committee on Appropriations, the Senate
13Committee on Finance, and the House and Senate committees on insurance containing
14information for the preceding year and quarter, respectively, detailing: the amount of
15premiums written, by parish and by grantee, pursuant to the program; the amount of
16premiums, by parish and by grantee, for property located in the parishes included in the
17federal Gulf Opportunity Zone Act of 2005; the amount of premiums, by parish and by
18grantee, removed from the Louisiana Citizens Property Insurance Corporation; and the total
19amount of premiums for each grantee, by parish, inclusive of premiums written pursuant to
20the program.
21 Section 2. The state treasurer is hereby authorized and directed to transfer $45,000,000
22to the Insure Louisiana Incentive Fund from the state general fund out of FY 2022-2023
23excess state general fund monies recognized by the Revenue Estimating Conference at its
24December 15, 2022, meeting.
25 Section 3. This Act shall become effective upon signature by the governor or, if not
26signed by the governor, upon expiration of the time for bills to become law without signature
27by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
28vetoed by the governor and subsequently approved by the legislature, this Act shall become
29effective on the day following such approval.
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 1 Engrossed 2023 First Extraordinary Session Zeringue
Abstract: Transfers $45 M from the State General Fund into the Insure La. Incentive Fund
and appropriates the funding, with certain restrictions and reporting requirements, to the
Dept. of Insurance for implementation and execution of the Insure La. Incentive Program.
Proposed law directs the state treasurer to transfer $45 M from the state general fund into
the Insure La. Incentive Fund.
Proposed law appropriates $45 M of budget authority to the Dept. of Insurance out of the
Insure La. Incentive Fund for implementation and execution of the Insure La. Incentive
Program. Requires that funds be used to award grants only to insurers licensed in La.
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possessing a minimum financial strength rating of AM Best "B+" or a Demotech financial
stability rating of "A". Further requires any nonadmitted insurer applying for a grant
pursuant to the program to have a minimum financial strength rating of AM Best "A".
Further requires the commissioner to expedite to the greatest extent possible the approval
of certificates of authority, rate filings, form filings, and other necessary regulatory
approvals of qualified insurers to facilitate the underwriting of new policies pursuant to the
program as quickly as possible and to monitor the financial solvency of insurers that are
issued a grant pursuant to the program. Provides such monitoring shall include an evaluation
of the adequacy of insurer reinsurance programs using catastrophe model stress tests against
the insurer's book of business. Requires the commissioner to take whatever action is
necessary to ensure that insurers receiving grants pursuant to the program remain financially
solvent.
Additionally requires the Dept. of Insurance to submit annual and quarterly reports on the
program to the House Committee on Appropriations, the Senate Committee on Finance, and
the House and Senate committees on insurance detailing the amount of premiums written
by parish pursuant to the program; the amount of premiums by parish for property located
in the parishes included in the federal Gulf Opportunity Zone Act of 2005; the amount of
premiums by parish removed from the Louisiana Citizens Property Insurance Corporation;
and the total amount of premiums by parish, inclusive of premiums written pursuant to the
program.
Effective upon signature of the governor or lapse of time for gubernatorial action.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
original bill:
1. Delete requirement that at least 50% of appropriated funds be used to award
grants to companies with a minimum financial strength rating of AM Best "B+".
2. Require nonadmitted insurers applying for a grant pursuant to present law to
have a minimum financial strength rating of AM Best "A".
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