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ENROLLED
2026 Regular Session
HOUSE BILL NO. 904
BY REPRESENTATIVE BAMBURG
1 AN ACT
2
3 To amend and reenact R.S. 22:550.4, 550.10(E) and (F), 550.11, 550.13(E), 550.20,
4 550.21(introductory paragraph) and (1), 550.23(H), and 550.24(A) and to enact R.S.
5 22:550.3(D), 550.14(B)(5), and 550.21(4), relative to captive insurers; to provide for
6 capital and surplus requirements; to require certain deposits; to prohibit insuring
7 certain risks; to provide for the governance of a company; to provide for annual
8 reporting requirements; to provide for the use of certain taxes; to provide for rate
9 filings; to make technical changes; to provide for effectiveness; and to provide for
10 related matters.
11 Be it enacted by the Legislature of Louisiana:
12 Section 1. R.S. 22:550.4, 550.10(E) and (F), 550.11, 550.13(E), 550.20,
13 550.21(introductory paragraph) and (1), 550.23(H), and 550.24(A) are hereby amended and
14 reenacted and R.S. 22:550.3(D), 550.14(B)(5), and 550.21(4) are hereby enacted to read as
15 follows:
16 §550.3. Applicability of other provisions
17 * * *
18 D. The commissioner may waive any requirements imposed in this Title for
19 risk retention groups, unless the waiver would violate the accreditation requirements
20 of the National Association of Insurance Commissioners.
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1 §550.4. Regulations
2 The commissioner may promulgate rules and regulations in accordance with
3 the Administrative Procedure Act as are necessary to implement and enforce the
4 provisions of this Subpart and to comply with accreditation standards of the National
5 Association of Insurance Commissioners applicable to risk retention groups
6 chartered and licensed as a captive insurance company.
7 * * *
8 §550.10. Capital and surplus requirements
9 * * *
10 E. Except as otherwise provided by the commissioner pursuant to Subsection
11 F of this Section, the capital required to be maintained pursuant to this Section shall
12 be in the form of cash, cash equivalents, bonds, marketable securities, surplus
13 debentures, letters of credit, a trust approved by the commissioner and pledged to the
14 commissioner, or evidences of indebtedness which are direct general obligations of
15 the government of the United States, or any other form of capital as approved by the
16 commissioner.
17 F. The commissioner may prescribe additional other forms of capital or other
18 requirements relating to capital and surplus based on the type, volume, and nature
19 of the insurance business that is transacted by the captive insurance company or risk
20 retention group chartered and licensed in this state.
21 §550.11. Deposit required of association captive insurers
22 A. Before receiving a certificate of authority, all association captive
23 insurance companies shall deposit with the commissioner a safekeeping or trust
24 receipt from a bank located in the state and doing business within the state or from
25 a savings and loan association chartered to do business in this state indicating that
26 the association captive insurance company has deposited one hundred thousand
27 dollars in money or bonds of the United States, the state of Louisiana, or any
28 political subdivision thereof, of the par value of not less than one hundred thousand
29 dollars. All securities deposited pursuant to this Section shall be held in trust for the
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1 benefit and protection of and as security for all policyholders of the association
2 captive insurance company making the deposit.
3 B. The commissioner may require a captive insurance company or a risk
4 retention group chartered and licensed in this state to deposit with the commissioner
5 a safekeeping or trust receipt from a bank located in this state and doing business
6 within this state or from a savings and loan association chartered to do business in
7 this state indicating that the captive insurance company or risk retention group has
8 deposited money or bonds of the United States, this state, or a political subdivision
9 of this state in an amount determined by the commissioner to address any financial
10 solvency concerns. All securities deposited pursuant to this Section shall be held in
11 trust for the benefit and protection of, and as security for, the policyholders of the
12 captive insurance company or risk retention group or to address financial solvency
13 concerns of the captive insurance company or risk retention group.
14 * * *
15 §550.13. Authorized and prohibited types of insurance
16 * * *
17 E.(1) An association captive insurance company shall not expose itself to
18 loss on any one risk in an amount which exceeds ten percent of the captive insurer's
19 capital and surplus. A risk, or any portion thereof, which has been reinsured shall
20 be deducted in determining the limitation of risk prescribed in this Section.
21 (2) Notwithstanding the provisions of Paragraph (1) of this Subsection, the
22 commissioner may grant authorization to a captive insurance company or a risk
23 retention group chartered and licensed in this state to expose itself to loss on a single
24 risk in any amount up to thirty percent of the capital and surplus of the captive
25 insurance company or risk retention group. A risk, or any portion thereof, which has
26 been reinsured shall be deducted in determining the limitation of risk prescribed in
27 this Section.
28 * * *
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1 §550.14. Formation and meetings of board of directors; additional requirements to
2 transact insurance
3 * * *
4 B. A captive insurance company shall not engage in any insurance business
5 in this state unless it complies with all of the following:
6 * * *
7 (5) Board members of risk retention groups that are chartered and licensed
8 in this state shall comply with the corporate governance standards for domestic risk
9 retention groups established by the National Association of Insurance
10 Commissioners.
11 * * *
12 §550.20. Prohibition on ownership Ownership by an insurance company
13 A captive insurance company shall not do business in this state if an
14 insurance company is directly or indirectly a member or owner of such captive
15 insurance company, except when the member of the captive insurance company are
16 all insurance companies. A captive insurance company or risk retention group
17 chartered and licensed in this state may do business in this state, regardless of
18 whether an insurance company is directly or indirectly a member or owner of the
19 captive insurance company or risk retention group.
20 §550.21. Annual report of financial condition to commissioner; regulations
21 designating form; alternative date to file annual report
22 Every captive insurance company and risk retention group chartered and
23 licensed in this state shall file each of the following with the department:
24 (1) Annually on or before March first, a statement of its financial condition
25 for the year ending December thirty-first immediately preceding, and any
26 amendment to the plan of operation at last year-end, verified by the oath of at least
27 two of its executive officers. For a captive insurance company, The the statement
28 shall be in the form prescribed by the commissioner. Risk retention groups chartered
29 and licensed in this state shall use the appropriate National Association of Insurance
30 Commissioners Annual Statement Blank prepared in accordance with the
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1 Instructions Handbook adopted by the National Association of Insurance
2 Commissioners, as applicable. Risk retention groups chartered and licensed in this
3 state shall follow the accounting procedures and practices prescribed by the
4 Accounting Practices and Procedures Manual adopted by the National Association
5 of Insurance Commissioners, unless otherwise provided in law.
6 * * *
7 (4) Risk retention groups chartered and licensed in this state are required to
8 maintain governance standards that are substantially similar to the standards adopted
9 by the National Association of Insurance Commissioners.
10 * * *
11 §550.23. Taxes on premiums and assessments
12 * * *
13 H. The premium tax revenues collected pursuant to this Section shall be
14 transferred annually to the department for the regulation of captive insurance
15 companies pursuant to this Subpart. The commissioner may withhold the funds
16 collected pursuant to this Section to defray the expense of collecting taxes imposed
17 by this Section and the enforcement of this Subpart and for the operation of the
18 department.
19 * * *
20 §550.24. Rates
21 A. Each captive insurance company and risk retention group chartered and
22 licensed in this state may be required by the commissioner to shall file rates for
23 property and casualty lines of insurance in accordance with Subpart O of Part IV of
24 Chapter 4 of this Title, R.S. 22:1451 et seq. on an actuarially justified basis with the
25 department. and may use the rates forty-five days after filing, unless the department
26 disapproves the use of rates within the forty-five period. For all other lines of
27 insurance, captive insurance companies shall file rates on an actuarially justified
28 basis with the department and may use the rates within the forty-five day period If
29 the commissioner requires a captive insurance company or risk retention group
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1 chartered and licensed in this state to file its rates with the department, the
2 commissioner may disapprove a filing if it raises financial solvency concerns.
3 * * *
4 Section 2. This Act shall become effective upon signature by the governor or, if not
5 signed by the governor, upon expiration of the time for bills to become law without signature
6 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
7 vetoed by the governor and subsequently approved by the legislature, this Act shall become
8 effective on the day following such approval.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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