House Bill No. by Representative Jordan seeks to establish a Catastrophe Reinsurance Program in Louisiana, aimed at providing insurance companies with an alternative method to secure reinsurance for property damage and casualty losses resulting from natural disasters, such as hurricanes. The bill introduces Chapter 14 of Title 22 of the Louisiana Revised Statutes, which outlines the program's purpose, funding through the issuance of catastrophe bonds, and the responsibilities of the State Bond Commission. This initiative is designed to stabilize and make homeowners' insurance more affordable, particularly in high-risk areas, by transferring the risk of losses to a broader set of investors.

The bill authorizes the State Bond Commission to issue catastrophe bonds that are exempt from state taxes and excluded from the calculation of net state tax-supported debt. It details the procedures for issuing these bonds, including the use of fees or assessments on insurance policies to cover related costs. The legislation establishes the Catastrophe Reinsurance Program Fund in the state treasury for managing the proceeds and emphasizes that the bonds will not constitute a pledge of the state's full faith and credit. Additionally, it outlines the rights of bondholders, including the ability to appoint a trustee and take civil action to enforce compliance with bond terms, while also allowing the commission to engage necessary professionals to facilitate the bond issuance process. The provisions of the bill will become void once all bonds issued under it are paid in full.