SSHB1 2549 46
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 1 2023 First Extraordinary Session Zeringue
APPROPRIATIONS/GENERAL: Appropriates funding for the Insure Louisiana Incentive
Program
Synopsis of Senate Amendments
1.Removes requirement that each grantee write a certain amount of net written
premiums each earning period for policyholders whose property was formerly
insured by the La. Citizens Property Insurance Corporation in order for the
grantee to remain eligible for the program.
Digest of Bill as Finally Passed by Senate
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.
possessing a minimum financial strength rating of AM Best "B+" or a Demotech financial
stability rating of "A". Further requires any licensed surplus lines insurer applying for a grant
pursuant to the program to have a minimum financial strength rating of AM Best "A".
Proposed law 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 from funds appropriated in proposed
law. 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 from funds appropriated in proposed law
remain financially solvent.
Proposed law 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 following
information on grantees receiving grants from funds appropriated pursuant to proposed law:
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.
Proposed law authorizes the commissioner of insurance to adopt emergency rules pursuant
to the Admin. Procedure Act to implement the Insure La. Incentive Program in conformity
with proposed law.
Proposed law requires the commissioner to promulgate rules for the Insure La. Incentive
Program that require reporting at least quarterly by each grantee that receives a grant from
funds appropriated in proposed law regarding certain financial data, including the grantee's
premium to surplus ratio and the grantee's catastrophe reinsurance program. Authorizes the
commissioner to adopt emergency rules to implement this requirement.
Page 1 of 2 SSHB1 2549 46
Proposed law requires that in awarding grants from funds appropriated pursuant to proposed
law, the commissioner give preference to grant applicants that agree to provide wind and hail
coverage.
Effective upon signature of the governor or lapse of time for gubernatorial action.
Page 2 of 2