2006 Louisiana Laws - RS 22:1262.1 — Approved unauthorized insurers; list; requirements; removal

§1262.1.  Approved unauthorized insurers; list; requirements; removal

A.  No surplus line broker shall place surplus line insurance with an insurer who is not on the list of approved unauthorized insurers as compiled and maintained by the commissioner of insurance.

B.(1)  To obtain and maintain placement on the list of approved unauthorized insurers, a foreign insurer shall comply with the provisions of R.S. 22:1262 applicable to foreign insurers and shall annually file with the commissioner the following:

(a)  A copy of the insurer's annual statement, signed and sworn to by its president and secretary as to its condition as of the preceding December thirty-first, evidencing that the insurer has capital and surplus of not less than fifteen million dollars exclusive of either surplus debentures or subordinated notes, and complied with the provisions of R.S. 22:1262(B)(7).

(b)  Evidence that the amount of net premiums written does not exceed four times the insurer's capital and surplus.

(c)  Evidence that, if the insurer issues workers' compensation insurance in this state, it has established and maintained a workers' compensation claims office pursuant to R.S. 23:1161.1 or has retained a licensed claims adjuster.

(d)  A copy of the producer production report in a form required by the commissioner listing all business placed with the company by licensed surplus lines brokers.  The report shall be filed with the Department of Insurance no later than April fifteenth of each year.

(2)  An insurer that fails to file a copy of its annual statement on or before March 1st of each year shall be removed from the list of approved unauthorized insurers.  The commissioner may grant an extension, not to exceed thirty days, if presented with satisfactory evidence showing the reasonableness of the extension.

C.  To obtain and maintain placement on the list of approved unauthorized insurers, an alien insurer shall comply with the provisions of R.S. 22:1262 applicable to alien insurers including but not limited to the provisions of R.S. 22:1262(B)(7), and the commissioner may require an alien insurer to file a copy of the producer production report in a form prescribed by the commissioner listing all business placed with the company by licensed surplus lines brokers.  The report shall be filed with the Department of Insurance no later than April fifteenth of each year.  The commissioner shall remove any alien insurer from the list of approved unauthorized insurers if it ceases to comply with the provisions of R.S. 22:1262 applicable to alien insurers, or if he determines that continued placement of surplus lines insurance with the insurer would not be in the best interest of the policyholders or citizens of Louisiana.

D.  The commissioner shall remove a foreign insurer from the list of approved unauthorized insurers if:

(1)  The insurer does not have capital and surplus of at least fifteen million dollars exclusive of surplus debentures and subordinated notes, as determined by his examiners.

(2)  It is determined that the continued placement of surplus line insurance with the insurer would not be in the best interest of the policyholders or the citizens of Louisiana.

E.  The commissioner may remove a foreign insurer from the list of approved unauthorized insurers if:

(1)  The amount of net premiums written exceeds four times the insurer's capital and surplus.

(2)  The insurer fails to deliver any information requested by the commissioner within thirty days.

(3)  The insurer issues workers' compensation insurance within the state, and fails to establish and maintain a workers' compensation claims office pursuant to R.S. 23:1161.1 or fails to retain a licensed claims adjuster.

F.(1)  The commissioner may declare an approved unauthorized insurer ineligible if at anytime he determines any of the following:

(a)  The insurer is in unsound financial condition or has acted in an untrustworthy manner.

(b)  The insurer no longer satisfies the requirements set forth in R.S. 22:1262.

(c)  The insurer has willfully violated the laws of this state.

(d)  The insurer does not conduct a proper claims practice.

(2)  Repealed by Acts 2005, No. 167, §2, eff. June 28, 2005.

G.  Upon removing an insurer from the list of approved unauthorized insurers, the commissioner shall notify the insurer and all licensed surplus lines brokers of such action in writing.  Such notice to licensed surplus line brokers may, at the option of the surplus lines broker, be sent by the commissioner via electronic mail.

H.  The commissioner shall have the authority to adopt and promulgate such rules and regulations as are necessary to carry out the provisions of this Section in accordance with the Administrative Procedure Act.

Acts 1985, No. 432, §1, eff. July 10, 1985; Acts 1990, No. 885, §1; Acts 1993, No. 902, §1; Acts 1997, No. 310, §1; Acts 1997, No. 1340, §1, eff. July 15, 1997; Acts 2004, No. 466, §1, eff. Jan. 1, 2005; Acts 2005, No. 167, §§1, 2, eff. June 28, 2005.