Louisiana House Bill 285 by Rep. J. Kevin Pearson, R-Slidell, which exempts surplus lines from filing rates and forms, has passed the state’s House of Representatives.
The Louisiana Surplus Lines Association supports the bill, which exempts surplus lines insurance delivered by approved unauthorized insurers from laws regarding form and rate filing and approval.
According David Tatman, a representative for the LSLA, HB 285 attempts to clarify the role of surplus lines insurance as complimentary to the “admitted market,” while at the same time conserving the full regulatory authority of the Commissioner of Insurance over the surplus lines industry as granted by the Louisiana Insurance Code.
Once approved to write in Louisiana, surplus lines insurers are placed on a list of approved companies known as the “white list.” Companies may be removed from the white list at any time, if they fail to meet the eligibility requirements, or the insurance department feels they are not acting in the best interest of the insured, according to the LSLA.
Tatman noted that between 2004 and 2006, in response to withdrawal from the market by many admitted insurers, the surplus lines industry increased its writings in Louisiana by 40 percent, according to tax figures provided by the insurance department.
Topics Excess Surplus Louisiana
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