House Bill No. 904, introduced by Representative Bamburg, aims to revise the regulations governing captive insurance companies and risk retention groups in Louisiana. The bill amends several sections of existing law to establish new guidelines for capital and surplus requirements, governance, annual reporting, and rate filings. Notably, it allows the commissioner of insurance to waive certain requirements for risk retention groups, provided that such waivers do not conflict with the accreditation standards set by the National Association of Insurance Commissioners (NAIC). Additionally, the bill expands the types of capital that can be used to meet financial requirements and mandates that board members of risk retention groups adhere to NAIC corporate governance standards.

The legislation also introduces specific limitations on the exposure of association captive insurance companies to loss on any single risk, capping it at ten percent of their capital and surplus, while granting the commissioner authority to impose stricter limits. Furthermore, it requires captive insurance companies and risk retention groups to file annual financial statements and adhere to NAIC accounting practices. The bill modifies the handling of premium tax revenues, allowing the commissioner to withhold funds for regulatory expenses, and stipulates that rates for property and casualty insurance must be filed with the department, with provisions for disapproval if they raise solvency concerns. The bill is set to take effect upon the governor's signature or after the expiration of the time for gubernatorial action.

Statutes affected:
HB904 Original: 22:10(E), 22:13(E), 22:21(1), 22:23(H), 22:24(A)
HB904 Engrossed: 22:10(E), 22:13(E), 22:21(1), 22:23(H), 22:24(A)