Louisiana Revised Statutes 22:112 – Surplus requirements; applicants on and after September 1, 1989
Terms Used In Louisiana Revised Statutes 22:112
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
A. Domestic mutual insurers who apply for a certificate of authority on or after September 1, 1989, may transact the following kinds of insurance in this state upon qualifying therefor and by having an initial minimum surplus and operating surplus represented by assets as follows:
Initial
Minimum Operating
Insurance Surplus Surplus
(1) Life $2,000,000 $1,000,000
(2) Health and accident 2,000,000 1,000,000
(1) and (2) above 2,000,000 1,000,000
(3) Vehicle 2,000,000 1,000,000
(4) Liability 2,000,000 1,000,000
(5) Workers’ compensation 2,000,000 1,000,000
(6) Burglary and forgery 2,000,000 1,000,000
(7) Fidelity 2,000,000 1,000,000
(8) Title 500,000 500,000
(9) Fire and allied lines 2,000,000 1,000,000
(10) Steam boiler and sprinkler leakage 2,000,000 1,000,000
(11) Crop 2,000,000 1,000,000
(12) Marine and transportation (except hull) 2,000,000 1,000,000
(13) Miscellaneous 2,000,000 1,000,000
(14) Homeowners’ insurance 2,000,000 1,000,000
(15) Credit life, health, and accident insurance 2,000,000 1,000,000
(16) Credit property and casualty insurance 2,000,000 1,000,000
(17) Annuity 2,000,000 1,000,000
(18) Surety 2,000,000 1,000,000
(19) Industrial fire 1,000,000 1,000,000
(20) All insurances, except life and title 2,000,000 1,000,000
B. Authority shall be granted mutual insurers upon compliance with all applicable requirements to transact combinations of kinds of insurance except as follows:
(1) An insurer authorized to transact life insurance shall not be authorized to transact any additional kind of insurance other than:
(a) Health and accident insurance.
(b) Annuity.
(c) Credit life, health, and accident insurance.
(2) An insurer authorized to transact title insurance shall not be authorized to transact any additional kinds of insurance.
C. For the purposes of this Section, assets representing at least fifty percent of the operating surplus shall be maintained in cash or cash equivalents prescribed by the commissioner.
D. Domestic mutual insurers authorized to transact homeowners’ insurance or fire and allied lines after September 1, 1989, shall have initial minimum surplus and operating surplus in the amount of five million dollars on or after December 31, 2026, and ten million dollars on or after December 31, 2031.
E. Domestic mutual insurers who apply for a certificate of authority on or after September 1, 2022, that includes the lines of homeowners’ insurance or fire and allied lines shall have initial minimum surplus and operating surplus in the amount of ten million dollars.
Acts 1989, No. 561, §1; Redesignated from La. Rev. Stat. 22:121.1 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 326, §1, eff. Jan. 1, 2010; Acts 2009, No. 503, §1; Acts 2022, No. 60, §1, eff. Jan. 1, 2023; Acts 2022, No. 69, §1.