House Bill No. [insert bill number] amends and reenacts several subsections of R.S. 9:2780, which pertains to oilfield indemnification agreements and additional insured coverage. The bill clarifies that any provisions in agreements related to oil, gas, or water wells that attempt to provide indemnity against losses resulting from the indemnitee's own negligence are void. It also specifies that the term "agreement" now includes multiple wells and outlines the conditions under which additional insured coverage can be sought. Specifically, it requires a party to request a premium quote, receive that quote, and make direct payment to the insurer for the coverage to be enforceable.

Additionally, the bill introduces new provisions regarding the responsibilities of the additional insured and the named insured concerning deductibles and retentions, capping the additional insured's liability at $100,000. It also states that any agreement requiring the named insured to cover deductibles up to that amount is null and void. The bill emphasizes that the prohibitions against indemnity remain intact and clarifies that the provisions apply to future agreements while excluding contracts executed before the bill's effective date. Overall, the bill aims to provide clearer guidelines for additional insured coverage in the oil and gas industry while maintaining protections against indemnity for negligence.

Statutes affected:
HB941 Original: 9:2780(B)