§46. General definitions
In this Code, unless the context requires, the following definitions apply:
(1) "Alien insurer" is one formed under the laws of any country other than the United
States.
(2) "Approved unauthorized insurer" means an insurer without a certificate of
authority, or otherwise qualified under the provisions of this Code, that meets the eligibility
criteria of R.S. 22:435(A)(2) and (B) and is on the list of approved unauthorized insurers
under the provisions of R.S. 22:436, and from which a licensed surplus lines broker may
procure insurance under the provisions of R.S. 22:432.
(3) "Authorized insurer" means an insurer with a certificate of authority or license
issued under provisions of this Code or otherwise qualified under R.S. 22:481 et seq.
(4) "Commercial residential coverage" means the type of coverage provided by
condominium or homeowners' association, apartment building, and similar policies.
(5) "Commissioner of insurance" as that office is created and defined by this Code
shall have full power and authority to act as insurance commissioner for the state of
Louisiana and is hereby declared to be the proper officer to act for this state and to represent
this state as a member of the National Association of Insurance Commissioners.
"Commissioner" shall mean the commissioner of insurance.
(6) "Control", relative to ownership, shall mean ownership representing or the
authority to represent over fifty percent of the total one hundred percent ownership.
(7) "Department" shall mean the Department of Insurance.
(8) "Directive" means a written communication or order issued by or on behalf of
the commissioner of insurance to a person whose activities are regulated by this Title, which
instructs the person to act in conformance with this Title, or any rule or regulation adopted
in accordance with the Administrative Procedure Act.
(9) "Domestic insurer" is one formed under the laws of this state.
(10) "Eligible unauthorized insurer" means an insurer without a certificate of
authority, or otherwise qualified under the provisions of this Code, that meets the eligibility
criteria of R.S. 22:435(A)(2) and (B) and from which a licensed surplus lines broker may
procure insurance under the provisions of R.S. 22:432.
(11) "Foreign insurer" is one formed under the laws of any other state or territory of
the United States or the District of Columbia.
(12)(a) "Home state" means, with respect to an insured on a surplus lines insurance
policy, one of the following:
(i) The state in which an insured maintains its principal place of business or, in the
case of an individual, the individual's principal residence.
(ii) If one hundred percent of the insured risk is located out of the state referred to
in Item (i) of this Subparagraph, the state to which the greatest percentage of the insured's
taxable premium for that insurance contract is allocated.
(iii) If more than one insured from an affiliated group are named insureds on a single
surplus lines insurance contract, the state, as determined pursuant to Item (i) or (ii) of this
Subparagraph, of the member of the affiliated group that has the largest percentage of
premium attributed to it under the surplus lines insurance contract.
(b) The home state as determined in Subparagraph (a) of this Paragraph is the state
that has sole statutory and regulatory jurisdiction over the placement of surplus lines
insurance pursuant to 15 U.S.C. 8202 and the exclusive authority to require the payment of
any premium tax on surplus lines insurance pursuant to 15 U.S.C. 8201.
(13)(a) "Insurance" is a contract whereby one undertakes to indemnify another or pay
a specified amount upon determinable contingencies. It shall include any trust, plan or
agreement, popularly known as employee benefit trusts, not specifically exempted from state
regulation under Public Law 93-406, except collectively bargained union welfare plans,
single employer plans or plans of the state or political subdivisions. The term "insurance"
shall not include any arrangement or trust formed under Subpart J of Part I of Chapter 10 of
Title 23 of the Louisiana Revised Statutes of 1950.
(b)(i) The establishment prior to twelve noon on October 1, 2010, and operation
thereafter of at least one or more professional or public liability trust funds by a statewide
hospital association in this state for the purpose of providing a means by which any type of
professional malpractice or public liability claims or judgments arising from such claims
against hospitals which are members of the association and claims against members of
societies of the association shall be paid or settled shall not be deemed to be insurance and
such trust or trusts shall not be deemed to be licensed, admitted or authorized insurers but
shall be subject to Subpart E of Part III of Chapter 2 of this Title, R.S. 22:651 et seq., Part
IV of Chapter 7 of this Title, R.S. 22:1961 et seq., and Chapters 8 and 12 of this Title, R.S.
22:1981 et seq. and R.S. 22:2191 et seq. An annual audited statement for each such trust
shall be filed with the commissioner of insurance by June thirtieth of each year for the
immediately preceding year ending December thirty-first or within six months of the close
of the fiscal year, only if records are not maintained on a calendar year basis. The
commissioner of insurance shall also have the authority to examine the books, records and
affairs of the trust funds.
(ii) After twelve noon on October 1, 2010, the establishment and subsequent
operation of one or more professional or public liability trust funds by a statewide hospital
association in this state for the purpose of providing a means by which any type of
professional malpractice or public liability claims or judgments arising from such claims
against hospitals which are members of the association and claims against members of
societies of the association shall be paid or settled shall be deemed to be insurance and such
trust or trusts shall be subject to the provisions of this Code.
(c)(i) The establishment prior to twelve noon on October 1, 2010, and operation
thereafter of professional and public liability trust funds by a nonprofit beneficiary
organization as set forth in Subpart N of Part I of Chapter 2 of this Title, R.S. 22:401 et seq.,
shall not be deemed to be insurance and the trusts shall not be deemed to be a licensed,
admitted, or authorized insurer but shall be subject to Subpart E of Part III of Chapter 2 of
this Title, Part IV of Chapter 7 of this Title, and Chapters 8 and 12 of this Title. An annual
audited statement shall be filed with the commissioner of insurance by June thirtieth of each
year for the immediately preceding year ending December thirty-first or within six months
of the close of the fiscal year, only if records are not maintained on a calendar year basis.
The commissioner of insurance shall also have the authority to examine the books, records,
and affairs of the trust fund.
(ii) After twelve noon on October 1, 2010, the establishment and subsequent
operation of professional and public liability trust funds by a nonprofit beneficiary
organization for the purpose of indemnifying nonprofit beneficiary organizations and their
officers, directors, and agents for financial loss due to the imposition of legal liability claims
or judgments arising from such claims shall be deemed to be insurance and such trust or
trusts shall be subject to the provisions of this Code.
(d)(i) The establishment prior to twelve noon on October 1, 2010, and operation
thereafter of at least one or more professional, trade, and occupational or public liability trust
funds by professional associations in this state for the purpose of providing a means by which
professional malpractice and public liability claims or judgments arising from such claims
against members of the associations shall be paid or settled shall not be deemed to be
insurance, and the trust shall not be deemed to be a licensed, admitted, or authorized insurer
but shall be subject to Subpart E of Part III of Chapter 2 of this Title, Part IV of Chapter 7
of this Title, and Chapters 8 and 12 of this Title. An annual audited statement shall be filed
with the commissioner of insurance by June thirtieth of each year for the immediately
preceding year ending December thirty-first or within six months of the close of the fiscal
year, only if records are not maintained on a calendar year basis. The commissioner of
insurance shall also have the authority to examine the books, records, and affairs of the trust
fund.
(ii) After twelve noon on October 1, 2010, the establishment and subsequent
operation of one or more professional, trade, and occupational or public liability trust funds
by professional associations in this state for the purpose of providing a means by which
professional malpractice and public liability claims or judgments arising from such claims
against members of the associations shall be paid or settled shall be deemed to be insurance
and such trust or trusts shall be subject to the provisions of this Code.
(14) "Insurer" includes every person engaged in the business of making contracts of
insurance, other than a fraternal benefit society. A reciprocal, an inter-insurance exchange,
insurance exchange syndicate, or a Lloyds organization is an "insurer". Any person who
provides an employee benefit trust as specified in Subparagraph (9)(a) of this Section is an
insurer. A health maintenance organization is an insurer but only for the purposes
enumerated in R.S. 22:242(7). The term "insurer" shall not include any arrangement or trust
formed under Subpart J of Part I of Chapter 10 of Title 23 of the Louisiana Revised Statutes
of 1950, nor shall such arrangement or trust be deemed an insurer.
(15) "Life insurer" shall mean all insurers issuing life insurance contracts, including
industrial and service insurers.
(16) "Ocean marine insurance" means marine insurance as defined in R.S. 22:47(13),
except for inland marine, as well as any other form of insurance, regardless of the name,
label, or marketing designation of the insurance policy, which insures against maritime perils
or risks and other related perils or risks, which are usually insured against by traditional
marine insurances such as hull and machinery, marine builders' risks, and marine protection
and indemnity. Such perils and risks insured against include without limitation loss, damage,
or expense or legal liability of the insured for loss, damage, or expense arising out of or
incident to ownership, operation, chartering, maintenance, use, repair, or construction of any
vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the
insured for personal injury, illness, or death or for loss of or damage to the property of the
insured or another person, except this definition shall not include insurance on vessels under
five tons gross weight. Ocean marine insurance as defined in this Section is subject to R.S.
22:1269.
(17) "Officer" shall mean a president, vice president, treasurer, actuary, secretary,
controller, and any other person who performs for the company functions corresponding to
those performed by the foregoing officers.
(18) "Person" means any individual, company, insurer, association, organization,
reciprocal or inter-insurance exchange, partnership, business, trust, limited liability company,
or corporation.
(19) "Personal residential coverage" means the type of coverage provided by
homeowners, mobile homeowners, dwelling, tenant, condominium unit owner, and similar
policies.
(20) "Premium" means all sums charged, received, or deposited as consideration for
the purchase or continuance of insurance for a definitely stated term, and shall include any
assessment, membership, policy, survey, inspection, service or similar fee or charge made
by an insurer as a part of the consideration for the purchase or continuance of insurance. The
term premium, as used in R.S. 22:885(B) and 887(D), shall not include any assessment,
membership, policy, survey, inspection, service, or similar fee or charge made by an insurer
as part of the consideration for the purchase or continuance of insurance.
(21) "Producer" shall mean a person required to be licensed under the laws of this
state to sell, solicit, or negotiate insurance and includes all persons or business entities
otherwise referred to in this Code as "insurance agent", "agent", "insurance broker", "broker",
"insurance solicitor", "solicitor", or "surplus lines broker".
(22) "Resident" shall mean any individual, company, insurer, partnership,
association, organization, corporation, reciprocal or inter-insurance exchange, business, or
trust that principally resides or maintains a principal place of business in this state.
(23) "Residential coverage" means coverage for persons that have an interest in
residential property that is either personal or commercial and includes coverage for particular
perils like wind, named storms, and hurricanes.
(24) "Secretary of state" means the secretary of state of the state of Louisiana where
that designation appears, to the extent that the functions to be performed by the secretary of
state as designated therein involve the recordation of documents or his appointment as
attorney to accept service of process in legal proceedings.
(25) "Small company" means a domestic life insurer which does business exclusively
in the state of Louisiana, with admitted assets not exceeding ten million dollars and having
gross annual premiums not exceeding two million dollars.
(26) "Surplus lines insurance" means any property and casualty or health and
accident insurance in this state on property, risk, or exposure located or to be performed in
this state, permitted to be placed through a licensed surplus lines broker with a surplus lines
insurer.
(27) "Surplus lines insurer" means an approved unauthorized insurer or eligible
unauthorized insurer, as defined in this Section, or a domestic surplus lines insurer as
provided in R.S. 22:436.1. "Surplus lines insurer" shall not include a health maintenance
organization.
(28) "Unauthorized insurer" means an insurer which does not possess a certificate
of authority to do business in the state.