ACT 191 (SB 67) 2023 Regular Session Robert Mills
Existing law authorizes the creation of self-insurance funds for the purpose of providing auto
coverage for vehicles that transport timber and agriculture products. Existing law provides
that any five or more Louisiana timber or agriculture companies may pool their liabilities and
self-insure for the purposes of maintaining automobile coverage for timber and agriculture
transportation vehicles so long as they each have a positive net worth, are members of a bona
fide trade or professional association, and meet and maintain certain financial requirements.
Existing law provides that no fund can become operative until the fund is issued a certificate
of authority by the Dept. of Insurance after the department has approved the application for
the fund based upon documents required to establish solvency and the ability to properly
manage and pay claims.
Existing law requires security in the form of excess insurance or reinsurance in an amount
and in a form that is approved by the Dept. of Insurance to provide financial stability and
ensure the ability of the fund to properly manage and pay claims. Existing law also provides
that, in order to further maintain the financial stability of the fund, the Dept. of Insurance is
to require that two or more timber or agriculture companies maintain a combined net worth
of $1,000,000 or five or more principals of the member companies to maintain a combined
net worth of $1,000,000. Existing law further provides that financial statements that are
audited by a certified public accountant and are not more than one year old is to be submitted
to the department to verify the combined net worth of the members of the fund.
New law retains existing law but provides that, in lieu of an audited financial statement, the
Dept. of Insurance is authorized to require that the fund submit necessary financial
documents in a form and in a manner approved by the department to verify the combined net
worth of those members or principals in amounts that are required in existing law.
New law directs the La. State Law Institute to make technical changes related to:
(1) The name of the fund.
(2) Correct references in existing law to the fund from plural to singular.
(3) Correct cross-reference in existing law to insurance law on the licensure as a property
and casualty producer.
Effective June 8, 2023.
(Amends R.S. 3:4351.2(B)(1))Statutes affected:
SB67 Original: 3:2(B)(1)
SB67 Engrossed: 3:2(B)(1)
SB67 Reengrossed: 3:2(B)(1)
SB67 Enrolled: 3:2(B)(1)
SB67 Act 191: 3:2(B)(1)