§ 22:2301 — Assessable insureds

Louisiana § 22:2301

• Jurisdiction: Louisiana
• Title 22: Insurance

Text

§2301. 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.
E. An assessable insured or the insurer of an assessable insured who, during the term
of a policy of insurance upon which an emergency assessment or regular assessment is
applied, cancels the policy of insurance, endorses the policy of insurance, or makes changes
to the policy of insurance which result in an increase or decrease in the premium shall cause
the emergency assessment or regular assessment to be adjusted such that the insured or
insurer shall owe or be owed, as the case may be, payment in an amount computed on a pro
rata basis for the term of the policy.
F. The office of risk management shall not be an assessable insured. Accordingly,
any policy of property coverage purchased by the office of risk management on behalf of the
state or any agency thereof as defined in R.S. 39:2 shall not be subject to any regular or
emergency assessment.

Legislative History

Acts 2003, No. 1133, §1; Acts 2007, No. 235, §1, eff. Jan. 1, 2008; Redesignated from R.S. 22:1430.10 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2016, No. 374, §1, eff. July 1, 2016.