Surplus Lines Rate, Form Filing Exemption Bill Passes Louisiana House

Louisiana House Bill 285 by Rep. Pearson, which exempts surplus lines from filing rates and forms, has passed the state’s House of Representatives.

According to David Tatman, a representative for the Louisiana Surplus Lines Association, the bill passed by a vote of 83-0. The LSLA supports the bill, which exempts surplus lines insurance delivered by approved unauthorized insurers from laws regarding form and rate filing and approval.

According to 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.

Surplus lines companies must meet strict eligibility and financial requirements of the insurance department before they can be approved to write in Louisiana. Once approved, they are placed on a list 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 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 admitted insurers, the surplus lines industry increased writings in Louisiana by 40 percent, according to tax figures provided by the insurance department.

Source: Louisiana Surplus Lines Association

Topics Excess Surplus Louisiana