House Bill No. 904, introduced by Representative Bamburg, aims to revise the regulatory framework governing captive insurance companies and risk retention groups in Louisiana. The bill amends several sections of the existing law to establish new guidelines regarding 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 proposed legislation also introduces specific limitations on the exposure of association captive insurance companies to risk, stipulating that they cannot exceed ten percent of their capital and surplus on any single risk. Furthermore, it allows the commissioner to require these companies to deposit funds or securities to address financial solvency concerns. The bill modifies the existing provisions regarding premium tax revenues, permitting the commissioner to withhold funds for regulatory expenses. Lastly, it establishes requirements for captive insurance companies and risk retention groups to file annual financial statements and rate filings, ensuring compliance with actuarial standards and addressing any solvency concerns that may arise.

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