The bill, HB 511, focuses on amendments to the Louisiana Insurance Guaranty Association (LIGA) regulations, specifically regarding the assessment of member insurers. It proposes to increase the maximum assessment from 1% to 2% of a member insurer's net direct written premiums for the preceding calendar year. Additionally, it allows for up to one-half of this 2% maximum assessment to be offset against the premium tax liability, while also establishing a new requirement for insurers to submit a net worth affidavit for any high net worth insured whose premium dollars are being deducted from assessments. The bill also clarifies the minimum and maximum amounts that LIGA can pay on covered claims and makes technical changes to existing laws.

Key amendments include the deletion of provisions that would have absolved LIGA from paying claims for high net worth insureds and the introduction of a new certificate of contribution for insurers, which is capped at one-half of the maximum assessment. The bill also mandates that the new 2% maximum assessment will take effect on January 1, 2024, and it authorizes the commissioner of insurance to create a separate form to facilitate the recovery of amounts not offset. Overall, the bill aims to enhance the financial stability of LIGA while ensuring that claims are paid efficiently and effectively.

Statutes affected:
HB511 Original: 22:2055(6), 22:2056(C)(2), 22:2058(A), 22:1(A), 22:2062(A)(1), 22:2062(A)(2)
HB511 Engrossed: 22:2055(6), 22:2056(C)(2), 22:2058(A), 22:1(A), 22:2062(A)(1), 22:2062(A)(2)
HB511 Enrolled: 22:2055(6), 22:2056(C)(2), 22:2058(A), 22:1(A), 22:2062(A)(2)
HB511 Act : 22:2055(6), 22:2056(C)(2), 22:2058(A), 22:1(A), 22:2062(A)(2)