ENROLLEDHCAHB941 4878 2296 HOUSE COMMITTEE AMENDMENTS Regular Session HOUSEAmendments BILLproposed NO.by House Committee on Insurance to Original House Bill No.

941 BYby REPRESENTATIVESRepresentative HEBERT,Hebert BAYHAM,AMENDMENT BEAULLIEU,NO. BILLINGS, BOUDREAUX, CARLSON, EGAN, JACOB LANDRY, MARCELLE, MELERINE, AND WYBLE AN ACT To amend and reenact R.S.

9:2780(B),1 (C),On (G),page (H),2, andline (I)18, andchange "provisions prohibitions" to enact"prohibitions" R.S.AMENDMENT NO.

9:2780(J),2 relativeOn topage oilfield3, indemnificationline agreements11, after "due" and additionalbefore insured"For" coverage;delete the period "." and insert the following:

to"or makewithin technicalseven changes;days of binding the renewal coverage for the named insured, whichever time period is less." Page 1 of 1 CODING:

and to provide for related matters.

Be it enacted by the Legislature of Louisiana:

Section 1.

R.S.

9:2780(B), (C), (G), (H), and (I) are herebyamended and reenacted and R.S.

9:2780(J) is hereby enacted to read as follows:

§2780.

Certain indemnification agreements invalid;

additional insured coverage * * * B.

Any provision contained in, collateral to, or affecting an agreement pertaining to a well or wells for oil, gas, or water, or drilling for minerals which occur in a solid, liquid, gaseous, or other state, is void and unenforceable to the extent that it purports to or does provide for defense or indemnity, or either, to the indemniteeagainstlossorliabilityfordamagesarisingoutoforresultingfromdeath or bodilyinjuryto persons,whichis causedbyor results from the sole or concurrent negligence or fault (strict liability) of the indemnitee, or an agent, employee, or an independent contractor who is directlyresponsible to the indemnitee.

C.

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 4 CODING:

Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.

HB NO.

941 ENROLLED conditioning, altering, plugging, or otherwise renderingservices in or in connection with any well or wells drilled for the purpose of producing or excavating, constructing, improving, or otherwise rendering services in connection with any mine shaft, drift, or other structure intended for use in the exploration for or productionofanymineral,oranagreementto performanyportion ofanysuchwork or services or 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.

* * * G.

Any provision in any agreement arising out of the operations, services, or activities listed in Subsection C of this Section of the Louisiana Revised Statutes of 1950 which requires waivers of subrogation, additional named insured endorsements, or any other form of insurance protection which would frustrate or circumventtheprohibitionsofthisSection,shallbenullandvoidandofnoforceand effect.

H.

Notwithstanding the prohibitions of Subsection G of this Section, additional insured coverage if procured as the result of an agreement shall be enforceable solelyas follows:

(1) A party can seek additional insured coverage for itself or itself and members of its group as defined by its agreement with the named insured after the party seeking additional insured coverage does all of the following:

(a) Makes such a request for an additional insured premium quote by separate written communication to the named insured or the named insured's insurance agent or broker, or both.

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

(c) Makes direct payment to the named insured's insurer or its authorized representative for either additional insured coverage for itself only or for itself and members of its group as defined by its agreement with the named insured.

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HB NO.

941 ENROLLED (2)(a) Additional insured coverage for 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 group premium amount.

(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.

(4) Any agreement where the named insured is made to fund all or any part of the deductibles or retentions up to the first one hundred thousand dollars is null and unenforceable and the provisions of this Subsection shall not apply.

(5) Nothing 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.

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HB NO.