§ 22:2370 — Earned capital

Louisiana § 22:2370

• Jurisdiction: Louisiana
• Title 22: Insurance

Text

§2370. Earned capital
A. An insurer who receives a matching capital fund grant under the provisions of this
Chapter shall earn the grant at the rate of twenty percent per year for each year in which the
insurer maintains the net written premiums in compliance with the requirements of this
Chapter, such that the insurer may earn the entire grant in five years.
B. If an insurer fails to comply with the requirements of this Chapter at the end of
any year of the grant, the commissioner shall have the option of granting an extension, if the
insurer shows promise of future compliance.
C. If the commissioner finds that an insurer has failed to comply with the statutory
or regulatory requirements for the grant, the commissioner may declare the insurer in default.
The insurer in default shall repay any matching capital fund grant funds that have not been
earned under Subsection A of this Section, plus legal interest from the date of the
commissioner's default declaration.
D. In the event of insolvency of an insurer, the Louisiana Insurance Guaranty
Association shall have no obligation to repay matching capital fund grants.

Legislative History

Acts 2007, No. 447, §1, eff. July 11, 2007; Redesignated from R.S. 22:3310 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2022, No. 754, §1.