07SessionSummaryCitizens

2007 Regular Session of the Louisiana Legislature
LAJ summary of selected bills and effective dates

Property and casualty insurance – Citizens Insurance Corp.
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Citizens. Changes six of the governor’s nine appointments to the Board of Directors for the Louisiana Citizens Property Insurance Corp. to include a nominee from Louisiana Bankers Association, Louisiana Home Builders Association, Society of Louisiana CPAs, Louisiana District Attorneys Association, Property Casualty Insurers Association and from the largest domestic property insurer in the state. (Amends R.S. 22:1430.3(A)(5), (8), and (10); adds R.S. 22:1430.3(F) and (G); repeals R.S. 22:1430.3(A)(11))
HB 431 Farrar; Act 403; Effective 8/15/07

Citizens. Provides for recoupment of Citizens assessments and deletes its credit schedules under the Coastal and FAIR plans. (Adds R.S. 22:1430.10(E); repeals R.S. 22:1430.8(B) and 1430.9(B))
HB 472 Morrish; Act 235; Effective 1/1/08

Citizens. Creates the Insure Louisiana Incentive Program to encourage insurers to participate in the voluntary property insurance market. Authorizes commissioner of insurance to make capital fund grants up to a program total of $100 million. Requires insurers accepting grants to sell property policies in Louisiana, 25 percent of which come from current Citizens’ customers. Establishes a residential property insurance tax credit of 7 percent of the premiums paid by the individual during the tax year for the primary residence of the individual, less the amount for which a credit is granted pursuant to R.S. 47:6025.  R.S. 22:3309(D) effective on Dec. 1, 2007.  R.S. 47:297.7 effective on July 1, 2008. Otherwise, effective upon signature of governor. (Adds R.S. 22:3301-3311 and R.S. 47:297.7)
HB 678 Carter, K.; Act 447; Effective (see bill)

Citizens. Until Aug. 15, 2010, Citizens must charge the higher of the actuarial rate or the rates equal to the highest of the top 10 insurers with the greatest total direct written premium for residential property in any noncompetitive market (instead of 10 percent over insurers’ rate). The 10 percent rate in excess of the rates charged among the 10 insurers in each parish does not apply to Calcasieu, Cameron, Vermilion, Iberia, St. Tammany, Orleans, Jefferson, St. Bernard, Plaquemines, Terrebonne, and Lafourche parishes. Authorizes the legislative auditor to examine the financial records of PIAL, the Louisiana Automobile Insurance Plan, and Citizens. (Adds R.S. 22:1405(K) and 1430.12(D))
HB 962 Morrell; Act 420; Effective 8/15/07

Citizens. Requires that Citizens, at least once per year, offer its in-force policies for removal to the voluntary market. Requires that these policies be bundled in groups of not less than 500 policies and include policies issued under the Coastal Plan and the FAIR Plan. Requires that 25 percent of the policies assumed be in certain parishes and that 75 percent be homeowner policies. (Adds R.S. 22:1430.23)
SB 153 Dupre; Act 377; Effective 11/1/07

Citizens. Allows examination by the legislative auditor of certain service providers of Citizens and gives a preference for insurance adjuster work by Citizens to Louisiana companies. (Adds R. S. 22:1405(K) and 1430.23)
SB 183 Quinn; Act 468; Effective 8/15/07