House Bill No. by Representative Jordan proposes the Louisiana Captive Insurance Act, which aims to regulate the formation and operation of various types of captive insurance companies, including pure captives, association captives, group captives, and protected cell companies. The bill establishes a comprehensive framework that includes licensing, capitalization, solvency, and reporting requirements for these insurers, while also promoting economic development by positioning Louisiana as a domicile for captive insurance. Key provisions include the requirement for captive insurers to maintain a board of directors with at least three members, including one resident of Louisiana, and to adopt a written governance policy.

Additionally, the bill mandates that captive insurers retain a qualified actuary to prepare an annual actuarial opinion on their financial condition and compliance, and they must file annual reports with the commissioner by April 30 each year. The legislation also introduces licensing requirements for captive managers, establishes a Louisiana Captive Insurance Development Fund, and creates a Captive Insurance Advisory Committee to guide regulatory policies. While captive insurers are exempt from certain provisions of the Louisiana Insurance Code, they remain subject to laws governing fraud and contractual obligations. Overall, the act seeks to enhance the regulatory environment for captive insurance in Louisiana, ensuring policyholder protection and fostering economic growth.

Statutes affected:
HB936 Original: