Bill > HB561

This bill modifies regulations for surplus lines insurance, which is a type of insurance coverage provided by non-standard insurers that are not required to follow all typical state insurance regulations. The bill makes three key changes: First, it updates the required notice on surplus lines insurance policies to explicitly state that these policies are not subject to certain Department of Insurance provisions like rate and form approval. Second, it increases the font size of this notice from ten-point to fourteen-point type. Third, it clarifies that surplus lines insurers have broad freedom to include arbitration clauses in their insurance contracts, with only one specific legal restriction (R.S. 9:2778). The bill also emphasizes that surplus lines insurers are generally exempt from form approval requirements in the Louisiana Insurance Code. The changes to the policy notice requirements will become effective on August 1, 2025, and apply to policies issued or renewed on or after January 1, 2026. The legislative intent is to provide clarity and reaffirm existing practices regarding surplus lines insurance, ensuring these insurers can negotiate contract terms more freely while still providing clear notice to policyholders about the unique nature of their insurance coverage.