HB 941 — INSURANCE: Provides with respect to additional insured coverage

HLSENROLLED 26RS-970 REENGROSSED Regular Session HOUSE BILL NO.

941 BY REPRESENTATIVES HEBERT, BAYHAM, BEAULLIEU, BILLINGS, BOUDREAUX, CARLSON, EGAN, JACOB LANDRY, MARCELLE, MELERINE, AND WYBLE INSURANCE:AN ACT To amend and reenact R.S.

Provides with respect to additional insured coverage AN ACT To amend and reenact R.S.

The term "agreement," as it pertains to a well or wells for oil, gas, or water, or drilling for minerals which occur in a solid, liquid, gaseous, or other state, as used in this Section, means any agreement or understanding, written or oral, concerning any operations related to the exploration, development, production, or transportation of oil, gas, or water, or drilling for minerals which occur in a solid, liquid, gaseous, or other state, including but not limited to drilling, deepening, reworking, repairing, improving, testing, treating, perforating, acidizing, logging, Page 1 of 64 CODING:

HLS 26RS-970 REENGROSSED HB NO.

941 asENROLLED used in this Section, means any agreement or understanding, written or oral, concerning any operations related to the exploration, development, production, or transportation of oil, gas, or water, or drilling for minerals which occur in a solid, liquid, gaseous, or other state, including but not limited to drilling, deepening, reworking, repairing, improving, testing, treating, perforating, acidizing, logging, conditioning, altering, plugging, or otherwise renderingservicesinrenderingservices in or in connection with any well or wells drilled for the purpose of producing or excavating, constructing, improving, or otherwise renderingservicesinrendering services in connection with anymineany mine shaft, drift, or other structure intended for use in the exploration for or productionproductionofanymineral,oranagreementto ofperformanyportion anyofanysuchwork mineral, or anservices agreementto performanyportion of anysuch work or servicesor any act collateral thereto, including the furnishing or rental of equipment, incidental transportation, and other goods and services furnished in connection with any such service or operation.

Page(b) 2Receives ofa 6premium CODING:quote from the named insured's insurer or its authorized representative.

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HLS 26RS-970 REENGROSSED HB NO.

941 (b) Receives a premium quote from the named insured's insurer or its authorized representative.

(2)Page Additional2 insuredof coverage4 forCODING: the group shall only be valid and enforceable pursuant to this Subsection when the premium is expressly quoted for group coverage, and the payment bythe additional insured is for that corresponding grouppremiumamount.

Onceadditionalinsuredcoverageisactuallypurchased,theWordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored namedare insured,additions. its insurer, or authorized representative shall notify the additional insuredinwritingatleastthirtydaysbeforethenextannualpremiumisdueorwithin seven days of binding the renewal coverage for the named insured, whichever time period is less.

ForHB anypolicyyearNO. where an additional insured either does not make the request pursuant to Subparagraph(1)(a) of this Subsection, or does not make payment in the previous policy year pursuant to Subparagraph(1)(c) of this Subsection, the named insured, its insurer, or authorized representative are not required to notify the additional insured in writing at least thirty days before future renewals and, in such instances, the additional insured shall make a new written request for additional insured coverage pursuant to Subparagraph(1)(a) of this Subsection.

(3)941 WhenENROLLED additional(2)(a) Additional insured coverage isfor obtainedthe pursuantgroup toshall Paragraphonly (1)be ofthisSubsection,theadditionalinsuredorinsureds,andnotthenamedinsured,arevalid liable for and responsibleenforceable forpursuant anyapplicable deductibles or retentions as set forth in the named insured's policyup to athis maximumSubsection ofwhen one hundred thousand dollars, with the namedpremium insuredis responsibleexpressly toquoted fundfor thegroup amountcoverage, ofand the applicablepayment deductiblesbythe oradditional retentions,insured ifis any,for inthat excesscorresponding ofgroup onepremium hundredamount. thousand dollars.

(b) Once additional insured coverage is actually purchased, the named insured, its insurer, or authorized representative shall notify the additional insured in writing at least thirtydays before the next annual premium is due or within seven days of binding the renewal coverage for the named insured, whichever time period is less.

(c) Foranypolicyyearwherean additional insured either does not makethe requestpursuanttoSubparagraph(1)(a)ofthisSubsectionordoesnotmakepayment in the previous policy year pursuant to Subparagraph (1)(c) of this Subsection, the namedinsured,its insurer,orauthorizedrepresentativearenot requiredtonotifythe additional insured in writing at least thirty days before future renewals and, in such instances, the additional insured shall make a new written request for additional insured coverage pursuant to Subparagraph (1)(a) of this Subsection.

(3) When additional insured coverage is obtained pursuant to Paragraph (1) ofthisSubsection,theadditionalinsuredorinsureds,andnot thenamedinsured,are liable for and responsible for anyapplicable deductibles or retentions as set forth in the named insured's policy up to a maximum of one hundred thousand dollars, with the named insured responsible to fund the amount of the applicable deductibles or retentions, if any, in excess of one hundred thousand dollars.

Page(5) 3Nothing in this Subsection shall in any way be deemed to negate the prohibition against defense and indemnity as set forth in Subsection B of 6this CODING:Section, which defense and indemnity provisions remain null and void and against public policy.

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941 (5)ENROLLED NothingH. in this Subsection shall in any way be deemed to negate the prohibition against defense and indemnity as set forth in Subsection B of this Section, which defense and indemnity provisions remain null and void and against public policy.

TheTheprovisions provisionsofthis of this Act do not deprive a person who has transferred land, with a reservation of mineral rights, of the right to secure an indemnity from any lessee, operator, contractor, or other person conducting operations for the explorationorproductionofmineralsinconnectionwiththereservedmineralrights;

DIGESTSPEAKER ThedigestprintedbelowwaspreparedbyHouseLegislativeOF Services.THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED:

ItPage constitutesnopart4 of the4 legislativeCODING: instrument.

The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent.

[R.S.

1:13(B) and 24:177(E)] HB 941 Reengrossed 2026 Regular Session Hebert Abstract:

Provides relative to additional insured coverage under certain oil and gas agreements.

Proposed law (R.S.

9:2780(H)) codifies the jurisprudential standard for additional insured coverage undercertainoil andgasagreementssetforthinMarcel v.

Placid Oil Co., 11 F.3d (1994).

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941 Presentlaw(R.S.9:2780(B)and(C))providesrelativetoagreementspertainingtoawellfor oil, gas, or water, or drilling for minerals.

Proposed law specifies present law and provides that the well for oil, gas, water, or drilling for minerals can be multiple wells.

Present law (R.S.

9:2780(G)) clarifies and reverts to original language to provide that any provision which would frustrate or circumvent the prohibitions of present law is null and void.

Proposed law (R.S.

9:2780(H)) provides that additional insured coverage procured as the result of an agreement is enforceable under limited circumstances.