§ 22:2369 — Net written premium requirements

Louisiana § 22:2369

• Jurisdiction: Louisiana
• Title 22: Insurance

Text

§2369. Net written premium requirements
A. For the purposes of this Chapter, "net written premiums" means the total
premiums, exclusive of assessments and other charges, paid by policyholders to insurers for
policies that comply with the provisions of this Section, minus any return premiums or other
premium credits due policyholders.
B. To comply with the requirements of this Chapter, new property insurance written
by an insurer who received a matching capital fund grant shall be residential, commercial,
mono-line, or package property insurance policies in this state and shall include coverage for
wind and hail with limits equal to the limits provided for other perils insured under such
policies. The net written premium requirements of this Section shall be satisfied only by
property insurance coverages reported on the Annual Statement State Page filed with the
Department of Insurance under lines 1 (Fire), 2.1 (Allied Lines), 3 (Farmowners), 4
(Homeowners), or 5.1 (Commercial Multi-peril Non-liability).
C. Insurers who receive the matching capital fund grants shall write property
insurance in this state that complies with the requirements of this Section with net written
premiums of at least a ratio of two dollars of premium for each dollar of the total of newly
allocated insurer capital and the matching capital fund grant.
D. In the first twenty-four months after receipt of matching capital fund grants,
insurers shall write at least fifty percent of the net written premium for policyholders whose
property is located in the parishes included in the federal Gulf Opportunity Zone Act of 2005
in Louisiana. Insurers shall maintain this net written premium ratio over five years to fully
earn the matching capital fund grant in accordance with R.S. 22:2370.
E.(1) The commissioner shall promulgate rules pursuant to the Administrative
Procedure Act, R.S. 49:950 et seq., to establish procedures to monitor the net written
premium of insurers receiving any grant under this Chapter and to ensure compliance with
the provisions of this Section. These rules shall include provisions for the return of grant
money to the state, on a pro rata basis, for failure to meet the requirements of this Section.
Notwithstanding the provisions of R.S. 22:2370 to the contrary, the commissioner shall seek
the return of unearned grant money from any insurer who has not complied with the
provisions of this Section for five consecutive years commencing on January 1, 2024, and
ending on December 31, 2028.
(2)(a) Notwithstanding the provisions of this Chapter to the contrary, rules and
regulations promulgated by the commissioner pursuant to this Chapter shall provide that
grants made pursuant to a third invitation for grant applications may be made to insurers
providing coverage against damage to an existing dwelling. Such grants shall be made only
as to those policies transferred from an existing dwelling to a new dwelling, provided the risk
of catastrophe associated with the new dwelling is the same as or no greater than the level
of risk of catastrophe associated with the existing dwelling.
(b) Grants shall also be made under the provisions of this Paragraph to any insurer
that was forced to reduce coverage or drop coverage entirely on existing dwellings in order
that the insurer maintain its financial stability or solvency. A grant made pursuant to this
Subparagraph shall be contingent on the insurer reinstating such former coverage or better
coverage on the existing dwellings.

Legislative History

Acts 2007, No. 447, §1, eff. July 11, 2007 (Subsection D eff. Dec. 1, 2007); Acts 2008, No. 390, §1, eff. June 21, 2008; Redesignated from R.S. 22:3309 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2012, No. 271, §1; Acts 2022, No. 754, §1.