Louisiana § RS 22:2369 - Net written premium requirements

§ RS 22:2369. Net written premium requirements

            A. For the purposes of this Chapter, "net written premiums" means the total premiums, exclusive of assessments and other charges, paid by policyholders to insurers for policies that comply with the provisions of this Section, minus any return premiums or other premium credits due policyholders.

            B. To comply with the requirements of this Chapter, new property insurance written by an insurer who received a matching capital fund grant shall be residential, commercial, mono-line, or package property insurance policies in this state and shall include coverage for wind and hail with limits equal to the limits provided for other perils insured under such policies. The net written premium requirements of this Section shall be satisfied only by property insurance coverages reported on the Annual Statement State Page filed with the Department of Insurance under lines 1 (Fire), 2.1 (Allied Lines), 3 (Farmowners), 4 (Homeowners), or 5.1 (Commercial Multi-peril Non-liability).

            C. Insurers who receive the matching capital fund grants shall write property insurance in this state that complies with the requirements of this Section with net written premiums of at least a ratio of two dollars of premium for each dollar of the total of newly allocated insurer capital and the matching capital fund grant.

            D. In the first twenty-four months after receipt of matching capital fund grants, insurers shall write at least fifty percent of the net written premium for policyholders whose property is located in the parishes included in the federal Gulf Opportunity Zone Act of 2005 in Louisiana. Insurers shall maintain this net written premium ratio over five years to fully earn the matching capital fund grant in accordance with R.S. 22:2370.

            E.(1) The commissioner shall promulgate rules pursuant to the Administrative Procedure Act, R.S. 49:950 et seq., to establish procedures to monitor the net written premium of insurers receiving any grant under this Chapter and to ensure compliance with the provisions of this Section. These rules shall include provisions for the return of grant money to the state, on a pro rata basis, for failure to meet the requirements of this Section. Notwithstanding the provisions of R.S. 22:2370 to the contrary, the commissioner shall seek the return of unearned grant money from any insurer who has not complied with the provisions of this Section for five consecutive years commencing on January 1, 2024, and ending on December 31, 2028.

            (2)(a) Notwithstanding the provisions of this Chapter to the contrary, rules and regulations promulgated by the commissioner pursuant to this Chapter shall provide that grants made pursuant to a third invitation for grant applications may be made to insurers providing coverage against damage to an existing dwelling. Such grants shall be made only as to those policies transferred from an existing dwelling to a new dwelling, provided the risk of catastrophe associated with the new dwelling is the same as or no greater than the level of risk of catastrophe associated with the existing dwelling.

            (b) Grants shall also be made under the provisions of this Paragraph to any insurer that was forced to reduce coverage or drop coverage entirely on existing dwellings in order that the insurer maintain its financial stability or solvency. A grant made pursuant to this Subparagraph shall be contingent on the insurer reinstating such former coverage or better coverage on the existing dwellings.

            Acts 2007, No. 447, §1, eff. July 11, 2007 (Subsection D eff. Dec. 1, 2007); Acts 2008, No. 390, §1, eff. June 21, 2008; Redesignated from R.S. 22:3309 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2012, No. 271, §1; Acts 2022, No. 754, §1.