2006 Louisiana Laws - RS 22:983 — Conditions of issuance of certificate of authority
§983. Conditions of issuance of certificate of authority
A. After the requirements of R.S. 22:982 have been completed and before a certificate of authority is issued by the commissioner of insurance, a foreign or alien insurer shall satisfy the commissioner of insurance that:
(1) Its name is not the same as, or deceptively similar to the name of any other insurer already authorized to transact business in this state;
(2) It is possessed of at least the minimum capital and surplus requirements for similar domestic insurers authorized to transact like kinds of insurance which it is authorized to transact in the state of its domicile or entry, including:
(a) If a stock insurer, at least the minimum paid-in capital, and total capital and surplus equal to or greater than the sum of the minimum paid-in capital, minimum surplus, and the operating surplus.
(b) If a mutual insurer, total surplus equal to or greater than the sum of the initial minimum surplus and the operating surplus.
(c) If a mutual or reciprocal insurer, writing non-assessable policies, the surplus requirement for a similar domestic mutual insurer to issue non-assessable policies.
(3) Its funds are invested in accordance with the laws of its domicile.
B. Before issuance of the certificate of authority to a foreign or alien insurer, such insurer shall make a deposit as required by Part XXII.1
C. Before issuance of the certificate of authority to an alien insurer, such insurer shall make a deposit as required by Part XXII and must maintain within the United States assets in amount not less than its outstanding liabilities arising out of its insurance transactions in the United States, and which assets shall be in addition to the larger of the following sums:
(1) The largest amount of deposit required by this Code to be made in this state by any type of domestic insurer transacting like kinds of insurance; or
(2) Two hundred thousand dollars. The trust deposit shall be for the security of all policyholders or policyholders and obligees of the insurer in the United States. It shall not be subject to diminution below the amount currently determined in accordance with this Subsection so long as the insurer has outstanding any liabilities arising out of its business transacted in the United States.
The trust deposit shall be maintained with public depositories or trust institutions within the United States approved by the commissioner of insurance.
D. Before issuing a certificate of authority to a foreign or alien insurer, the commissioner of insurance may cause an examination to be made of its condition and affairs.
E. The transacting of business in this state by a foreign or alien insurer pursuant to a certificate of authority issued under this Part shall constitute a consent to being sued by the injured person or his or her heirs in a direct action as provided in R.S. 22:655, whether the policy of insurance sued upon was written or delivered in the state of Louisiana or not, and whether or not such policy contains a provision forbidding such direct action, provided that the accident or injury occurred within the state of Louisiana.
Acts 1958, No. 125. Amended by Acts 1969, No. 74, §1; Acts 1999, No. 507, §1; Acts 2003, No. 130, §1; Acts 2004, No. 377, §1.
1R.S. 22:1021 to 1030
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