2006 Louisiana Laws - RS 22:1430.9 — Functions of insurers participating in the fair plan

§1430.9.  Functions of insurers participating in the FAIR Plan

A.  All assessable insurers shall participate in assessments of the FAIR Plan in the proportion that the net direct premium of such participant written in this state during the preceding calendar years bears to the aggregate net direct premiums written in this state by all assessable insurers during the preceding calendar year as certified to the governing board of the corporation after review of annual statements, other reports, and other statistics necessary to provide the information herein required and which the Louisiana Insurance Rating Commission is hereby authorized and empowered to obtain from all assessable insurers.  Assessable insurers shall not participate in the gains or losses of the FAIR Plan.

B.  The governing board of the corporation may adopt, in accordance with the plan of operation approved by the Louisiana Senate Committee on Insurance and the Louisiana House Committee on Insurance, a credit schedule for essential property insurance voluntarily written, and participation by assessable insurers in the writings in the FAIR Plan may be reduced in accordance with the provisions of such credit schedule.  The governing board shall define the term "essential property insurance" for the purposes of this Section.

C.  Any insurer who becomes authorized to engage in writing property insurance within Louisiana and who engages in writing property insurance within Louisiana shall become an assessable insurer in the FAIR Plan on January first immediately following such authorization, and shall cease to be an assessable insurer one year after the end of the first calendar year during which the insurer no longer holds a certificate of authority to transact insurance for subject lines of business in this state.

Acts 2003, No. 1133, §1.