La. Admin. Code tit. 37 § XIII-18923
Current through Register Vol. 50, No. 9, September 20, 2024
Section XIII-18923 - Property Insurance RequirementsA. The grantee shall write new property insurance in Louisiana of the types described in R.S. 22:2369 and this Section of Regulation 125 with net written premiums of at least a ratio of $2 of premium for each $1 of the total of newly allocated property insurer capital combined with the grant from the Incentive Program Fund. Thus, if the grantee allocates $2,000,000 in capital and receives a matching state grant of $2,000,000, the grantee must write property insurance in Louisiana with net premiums of at least $8,000,000.B. To comply with the requirements of the grant, new property insurance written by the grantee 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.C. The net written premium requirements of this Section shall be satisfied only by new property insurance coverages reported on the Annual Statement State Page filed with the department under lines 1 (Fire), 2.1 (Allied Lines), 3 (Farmowners), 4 (Homeowners), or 5.1 (Commercial Multiperil Non-liability).D. Grantees shall also comply with the following.1. In the first 24 months after receipt of matching capital fund grants, the grantee shall write at least 50 percent of the net written premiums for policyholders whose insured property is located in the parishes listed in §18917.B.3 The grantee 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 unless an extension has been granted by the commissioner under R.S. 22:2370.B or §18929.C of Regulation 125.2. The net written premium ratio of §18923.D.1 applies only to the net minimum premium required under §18923.A Thus, the grantee may write additional Louisiana property coverage without regard to the ratio required by §18923.D.1E. The requirements of the grant that must be satisfied by the grantee are illustrated by the following example assuming a grant of $2,000,000.1. Example a. The grantee is awarded a $2,000,000 grant. Within 10 days of receipt of the grant of Incentive Program Funds, the grantee must match the grant with newly allocated capital funds of at least $2,000,000 and provide written certification of compliance to the department. In the first 24 months after receipt of the grant, the grantee must write property insurance in Louisiana with net written premiums of at least $8,000,000. In the first 24 months after receipt of the grant, the grantee must write at least $4,000,000 of the net written premiums for policyholders whose insured property is located in the parishes listed in §18917.B.3 Grantees 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. Compliance with the requirements for the second year and for each succeeding year must be demonstrated on the grantee's annual reports.F. Grantees shall also satisfy the requirements for licensing, form filings, rate filings, and any other applicable provisions contained in Title 22.La. Admin. Code tit. 37, § XIII-18923
Promulgated by the Department of Insurance, Office of the Commissioner, LR 49273 (2/1/2023).AUTHORITY NOTE: Promulgated in accordance with R.S. 22:11, 22:2361 et seq., and the Administrative Procedure Act, R.S. 49:950 et seq.