House Bill No. by Representative Jordan seeks to establish a Catastrophe Reinsurance Program in Louisiana, designed to provide insurance companies with an alternative means of securing reinsurance for property damage and casualty losses resulting from natural disasters, particularly hurricanes. The bill introduces a new chapter in the Louisiana Revised Statutes that includes provisions for the issuance of catastrophe bonds by the State Bond Commission. These bonds will be utilized to fund the program, with specific requirements such as exemption from state taxes and exclusion from the calculation of net state tax-supported debt. The overarching goal of the program is to stabilize and reduce homeowners' insurance premiums in high-risk areas.

The legislation outlines the operational framework for the State Bond Commission, granting it the authority to issue and manage the bonds, as well as to employ necessary professionals. It establishes a process for contesting the legality of the bonds and delineates the rights and remedies available to bondholders. Importantly, the bill clarifies that the bonds will not constitute a pledge of the state's full faith and credit, thereby safeguarding the state from direct financial obligations related to the bonds. By creating the Catastrophe Reinsurance Program Fund, funded by the proceeds from the catastrophe bonds, the bill aims to enhance the availability and affordability of homeowners' insurance in Louisiana while effectively managing the financial risks associated with natural disasters.