House Bill No. HLS 25RS-1006, known as the Creating Holistic Options in Coverage for Enterprise and Self-Insurance (CHOICES) Law, seeks to modernize the regulation of domestic captive insurance companies in Louisiana. The bill amends existing statutes to introduce new definitions and requirements, including application processes, capital and surplus mandates, and confidentiality provisions for certain records. Notably, it reduces the minimum capital and surplus requirements for pure captive insurance companies from $500,000 to $250,000 and for association captives from $1,000,000 to $500,000. The bill also establishes a public records exception for specific records and outlines the procedures for examinations, redomestication, and dormancy of captive insurance companies.

Key provisions include the requirement for captive insurance companies to obtain a certificate of authority from the commissioner of insurance before conducting business, as well as detailed application requirements that encompass financial statements and operational plans. The bill emphasizes confidentiality regarding submitted information, with exceptions for legal proceedings. Additionally, it mandates that captive insurance companies hold annual meetings in the state, maintain a principal place of business, and appoint a registered agent for service of process. The bill also modifies the tax structure for captive insurance companies, changing the tax rate on direct premiums to 0.15% with specific deductions, and adjusts the approval timeframe for policy forms from 45 days to 30 days, aiming to enhance regulatory oversight while promoting growth in the captive insurance sector.

Statutes affected:
HB635 Original: 44:1(B)(11)
HB635 Engrossed: 44:1(B)(11)