House Bill No. by Representative Bayham amends R.S. 22:601.8 to regulate the equity interests and investments of domestic insurers, focusing on solvency and limitations on equity held by life insurers and other insurers. The bill removes previous provisions that allowed insurers to acquire preferred stocks in any U.S. business entity under certain conditions, while retaining the ability for insurers to acquire equity interests in solvent business entities that are either domiciled in the U.S., listed on a qualified exchange in a foreign jurisdiction, or permitted under existing law.

The proposed law introduces specific prohibitions for life insurers, including restrictions on acquiring investments that would cause their equity interests to exceed 20% of admitted assets or non-listed equity interests to exceed 5% of admitted assets. Additionally, life insurers are prohibited from short-selling equity investments unless they cover the short sale appropriately. For insurers other than life insurers, the bill maintains existing limitations on the aggregate amount of investments and sets conditions for preferred stocks and mutual fund investments, ensuring that the total equity interests do not exceed 50% of admitted assets or 100% of surplus as regards policyholders.

Statutes affected:
HB1151 Original: