Louisiana Insurance Department Releases Status Report on Insurance Premium Tax Payment, Surplus Lines Legislation, Other Bills
Apr 3, 2013
The Louisiana Insurance Department released an updated Bill Status Report (“Report”) yesterday, April 2, 2013, on insurance-related bills for the upcoming Louisiana Legislative Session, which will commence on April 8.
The Report, which is attached in PDF format, includes information on HB 374, which would change the timing of insurance premium tax payments from quarterly to annual for those insurers with a net tax liability not in excess of $1 million in any tax year. The bill has been referred to the House Insurance Committee. To view the bill text, click here.
HB 543, another bill of interest, would make several changes to Louisiana’s surplus lines laws. In addition to changing surplus lines insurer eligibility requirements to conform to the Nonadmitted and Reinsurance Reform Act of 2010, the bill also would authorize placement of insurance with a surplus lines insurer without regard to the availability of authorized insurance. Present law provides that the placement of insurance coverage with a surplus lines insurer through a surplus lines broker may occur only if such coverage is not available from an authorized insurer (otherwise known as an admitted insurer).
The bill would eliminate an existing requirement that a submitting producer provide an affidavit to the surplus lines broker that the policyholder is not able to obtain authorized personal lines insurance after diligent efforts by the producer. In addition, HB 543 would require that all producers obtain written permission from the policyholder on a form approved by the Louisiana Insurance Commissioner prior to obtaining surplus lines coverage.
HB 543 has also been referred to the House Insurance Committee. To view the bill text, click here.
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