2006 Louisiana Laws - RS 22:440 — Organization bonds

§440.  Organization bonds

A.  The attorney-in-fact shall deliver to the commissioner of insurance two bonds in favor of the state of Louisiana, in the penal sum of ten thousand dollars each, with the attorney-in-fact as principal and a duly authorized surety insurer as surety.  One of such bonds shall be conditioned upon the payment of costs incurred by the state by reason of any legal proceedings for the liquidation or dissolution of the reciprocal insurer prior to the issuance to it of a certificate of authority to do an insurance business.  The other bond shall be for the use and benefit of subscribers and creditors, and shall be conditioned upon the full and complete accounting for all funds and property coming into the possession of the attorney-in-fact prior to the issuance to the reciprocal insurer of a certificate of authority to do an insurance business.  

B.  In lieu of delivering the above bonds, the attorney-in-fact may deposit with the commissioner of insurance twenty thousand dollars in cash or securities of the United States government or of the state of Louisiana, having a market value of at least twenty thousand dollars.  The cash or securities so deposited shall be held in trust by the commissioner of insurance, until the issuance of a certificate of authority to the insurer, to indemnify the state of Louisiana and all subscribers and creditors of the insurer for the same matters and things set forth as conditions of the organization bonds mentioned in Sub-section B.  

Acts 1958, No. 125.