Bill > HB936

This bill establishes the "Louisiana Captive Insurance Act," creating a framework for various types of captive insurers to operate within the state, including pure captives (insuring only their parent or affiliated companies), association captives (insuring members of associations), group captives (insuring multiple unaffiliated companies), sponsored captives (insuring participants through separate accounts), and protected cell companies (PCCs), which are single legal entities that can establish separate cells with distinct assets and liabilities for different participants. The bill outlines requirements for forming and licensing these insurers, including a detailed business plan, minimum capital and surplus amounts that vary by captive type, and licensing fees that will fund the state's captive industry development. It also specifies governance requirements, mandates the use of licensed captive managers and qualified actuaries, sets investment and reinsurance standards, and requires annual reporting and examinations by the commissioner of insurance. Importantly, captive insurers are generally exempt from other insurance laws and are not covered by the Louisiana Insurance Guaranty Association (LIGA), meaning policyholders of captive insurers do not have access to LIGA protection. The bill also includes specific provisions for small carrier group captives, offering expedited processes and reduced capitalization requirements for protected cell companies sponsored by trade associations representing small commercial transportation carriers.

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https://www.legis.la.gov/legis/BillInfo.aspx?s=26rs&b=HB936&sbi=y