§ 22:550.10 — Capital and surplus requirements

Louisiana § 22:550.10

• Jurisdiction: Louisiana
• Title 22: Insurance

Text

§550.10. Capital and surplus requirements
A. Prior to issuing policies of insurance or entering into any contracts of reinsurance,
each pure captive insurance company shall possess and thereafter maintain unimpaired paid-in capital and surplus of not less than two hundred fifty thousand dollars and any additional
capital or surplus required pursuant to Subsection F of this Section.
B. Prior to issuing any policies of insurance or entering into any contracts of
reinsurance, each association captive insurance company shall possess and thereafter
maintain unimpaired paid-in capital and surplus of not less than five hundred thousand
dollars and any additional capital or surplus required pursuant to Subsection F of this
Section.
C. Prior to issuing any policies of insurance or entering into any contracts of
reinsurance, each risk retention group shall possess and thereafter maintain unimpaired
paid-in capital and surplus of not less than one million dollars and any additional capital or
surplus required pursuant to Subsection F of this Section.
D. A branch captive insurance company shall maintain at all times an unimpaired
paid-in capital and surplus requirement of two hundred fifty thousand dollars or an amount
determined by the commissioner pursuant to Subsection F of this Section. Additionally, as
security for the payment of liabilities attributable to branch operations, the commissioner
may require that a trust fund, funded by an irrevocable letter of credit or other acceptable
asset, be established and maintained in the United States for the benefit of United States
policyholders and ceding insurers. The amount of security required shall not be less than the
capital and surplus requirement and the reserves on the insurance policies or reinsurance
contracts.
E. Except as otherwise provided by the commissioner pursuant to Subsection F of
this Section, the capital required to be maintained pursuant to this Section shall be in the
form of cash, cash equivalents, bonds, marketable securities, a trust approved by the
commissioner and pledged to the commissioner, or evidences of indebtedness which are
direct general obligations of the government of the United States.
F. The commissioner may prescribe additional requirements relating to capital and
surplus based on the type, volume, and nature of the insurance business that is transacted by
the captive insurance company.

Legislative History

Acts 2008, No. 403, §1, eff. Jan. 1, 2009; Redesignated by Acts 2009, No. 503, §3; Acts 2012, No. 633, §1; Acts 2025, No. 313, §2.