Louisiana Revised Statutes 22:801 – Commissioner authorized to hold deposits
Terms Used In Louisiana Revised Statutes 22:801
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
A. If a deposit in this state is required by another state or jurisdiction as a condition of seeking or maintaining a license or certificate of authority or surplus lines approval in that state or jurisdiction, an insurer authorized in Louisiana may make the deposit as provided in this Section.
(1) The insurer shall notify the commissioner in writing of the intent to make the deposit. This notice shall include the reason for the deposit and the amount of the deposit to be held and shall specifically identify each jurisdiction for which the deposit is required.
(2) The deposit shall be made in a bank doing business in this state or a savings and loan association chartered to do business in this state and shall be pledged to the commissioner as provided in this Section.
(3) Deposits made pursuant to this Section shall be held in trust for the benefit and protection of, and as security for, all policyholders and creditors of the insurer making the deposit.
B. The commissioner may, as a condition of the issuance or maintenance of a certificate of authority in this state, order an insurer to make and maintain a deposit based upon the type, volume, or nature of insurance business transacted. Deposits made pursuant to this Subsection shall be held pursuant to the requirements and conditions ordered by the commissioner.
C. Deposits made pursuant to this Section shall be in the form of money or in approved bonds of the United States, the state of Louisiana, or any political subdivision of the state thereof with a market value of not less than the required amount as specified by the insurer or required by the commissioner.
D. Every insurer making a deposit in compliance with this Section shall, no later than the first of March each year, provide to the commissioner a safekeeping or trust receipt from the bank or savings and loan association holding the deposit confirming the amount of the deposit, identifying the nature of the deposit, and confirming the fact that the deposit is pledged to the commissioner.
Acts 1958, No. 125. Amended by Acts 1969, No. 75, §1; Acts 1979, No. 198, §1; Acts 1979, No. 235, §1; Acts 1981, No. 746, §1; Acts 1982, No. 748, §1; Acts 1996, 1st Ex. Sess., No. 71, §1, eff. May 10, 1996; Redesignated from La. Rev. Stat. 22:1021 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2008, No. 504, §1, eff. Jan. 1, 2009; Acts 2021, No. 159, §1, eff. July 1, 2021.
NOTE: Former La. Rev. Stat. 22:801 redesignated as La. Rev. Stat. 22:71 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.