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 Original 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 Louisiana possessing a minimum financial
strength rating of AM Best "B+" or a Demotech financial stability rating of "A". Further requires
that at least fifty percent of such funds be used to award grants to companies with a minimum
financial strength rating of AM Best "B+". Provides that if an insurer applies for a grant prior to
obtaining a license to write policies in Louisiana, such insurer shall 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 that the Dept. of Insurance 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.