2006 Louisiana Laws - RS 22:1430.10 — Assessable insureds

§1430.10.  Assessable insureds

A.  All persons who procure one or more subject lines of business from an assessable insurer are subject to emergency assessment by the corporation, and are referred to collectively as "assessable insureds".

B.  When an emergency assessment is levied by the corporation, the assessment percentage applicable to each assessable insured is the ratio of the total amount being assessed by the corporation to the aggregate statewide direct written premium for the subject lines of business for the prior year.

C.  Emergency assessments levied by the corporation on assessable insureds shall be collected by all assessable insurers at the time an assessable insured procures a policy of insurance for a subject line of business.  Assessable insurers shall remit the collected emergency assessments to the corporation in accordance with guidelines included in the corporation's plan of operation. Emergency assessments shall not be considered premium.

D.  Assessable insurers shall be permitted to recoup all regular assessments from their voluntary policyholders by applying a surcharge to all policies issued for subject lines of business.  The surcharge shall be a uniform percentage of premium, but shall not be considered premium.  Assessable insurers shall cease to collect the recoupment surcharge once the full amount of the regular assessment has been collected.  If an assessable insurer recoups more than its fair share of a regular assessment, all funds collected in excess of the insurer's share of the regular assessment shall be remitted to the corporation for use in defraying future deficits.  Assessable insurers shall notify the department at least thirty days in advance of the commencement of such a surcharge.

Acts 2003, No. 1133, §1.