SB 341 — SELF INSURANCE: Provides for the Louisiana Churches and Nonprofit Religious Organizations Self-Insured Fund. (gov sig)

SLS 26RS-622 ENGROSSED Regular Session ENROLLED SENATE BILL NO.

341 BY SENATORSENATORS EDMONDS SELFAND INSURANCE.HODGES AND REPRESENTATIVES BAMBURG, BAYHAM, GALLE, GLORIOSO, HEBERT, ILLG, MELERINE, MURRAY AND WILDER AN ACT To amend and reenact R.S.

Provides12:1853, forthe introductory paragraph of 1854, 1854(3) and (7), the Louisianaintroductory Churchesparagraph of 1855(B)(1), 1855(B)(2)(b)(xiii), 1856(A)(3) and Nonprofit(4), Religiousand Organizations1870 Self-Insuredand Fund.to enact R.S.

(gov12:1855(A)(5)(c) sig)and AN1856(H) ACT To amend and reenactto repeal R.S.

12:1853,12:1855(A)(5)(b) theand introductory1856(E), paragraphrelative ofto 1854, 1854(3) and (7), the introductoryLouisiana paragraphChurches of 1855(B)(1),1855(B)(2)(b)(xiii), 1856(A)(3) and (4),Nonprofit andReligiousOrganizationsSelf-InsuredFund;toprovidefordefinitions;toprovidefor 1870initial andfinancial torequirements; enact R.S.

12:1856(H), relative to theprovide Louisianafor Churchesrecords and Nonprofitrecordkeeping; Religious Organizations Self-Insured Fund;

to provide forfortechnicalchangesbytheLouisianaStateLawInstitute;toprovideforaneffective definitions;date;

to provide for initial financial requirements;

to provide for technical changes by the Louisiana State Law Institute;

to provide for an effective date;

12:1853, the introductory paragraph of 1854, 1854(3) and (7), the introductoryparagraphof1855(B)(1),1855(B)(2)(b)(xiii),1856(A)(3)and(4),and1870are herebyherebyamended amended and reenactedreenactedand and R.S.

12:1856(H)12:1855(A)(5)(c)and is1856(H) herebyenactedareherebyenacted: to read as follows:

regulation A.Twoormorechurchesornonprofitreligiousorganizationsoroneormore religious denominations may agree to pool their liabilities for the purposes of providing property commercial coverage for their buildings and other properties, so long as theyhave a positive net worth, are financiallysolvent, and are capable of Pageassuming 1the ofobligations 6set Coding:forth in this Chapter.

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SLS 26RS-622 ENGROSSED SB NO.

341 assuming the obligations set forth in this Chapter.

B.C.Thedepartmentshallpromulgatenecessaryrulesinaccordancewiththe AdministrativeProcedureActtoimplementAdministrativeProcedureActtoimplementandregulatetheactivitiesauthorizedin andregulatetheactivitiesauthorizedin this Chapter.

Definitions WhereverusedPage in1 this Chapter, unlessa differentmeaningclearlyappearsin the context, the following terms, whether used in the singular or plural, shall have the following meanings For the purposes of this5 ChapterCoding: the following terms shall have the following meanings:

Words which are struck through are deletions from existing law;

words in boldface type and underscored are additions.

SB NO.

341 ENROLLED Whereverused in this Chapter,unless a differentmeaningclearlyappearsin the context, the following terms, whether used in the singular or plural, shall have the following meanings For the purposes of this Chapter the following terms have the following meanings:

initial financial requirements *A. * * Page 2 of 6 Coding:

* * * (5) * * * (c)ExceptasotherwiseprovidedinSubparagraph(a)ofthisParagraph, original books, records, documents, accounts, and vouchers, or reproductions thereof,shallbepreservedandkeptinthisstateforthepurposeofexamination and until theauthoritytodestroyorotherwisedisposeoftherecordsis secured fromthedepartment.Alloriginalrecordsorcertifiedreproductionsorrecords originally received in a digital or electronic format shall be maintained for the period commencing on the first day following the last period examined by the department through the subsequent examination period, or five years, Page 2 of 5 Coding:

SLS 26RS-622 ENGROSSED SB NO.

341 B.(1)ENROLLED Thewhichever fundis shalllonger. submit to the department an application, on an application form prescribed and furnished by the department, for authority to act as a group self-insurance fund for property commercial coverage.

Each* application* shall* includeB.(1) evidenceThe offund shall submit to the fund'sdepartment inception,an whichapplication, establisheson financialan strengthapplication andliquidityofthememberstopayclaimspromptlyandsupportthefinancialabilityform ofthefundtosatisfyitsobligationsupontheestablishmentofthefund,includingallprescribed ofand thefurnished following:bythe department, for authority to act as a group self-insurance fund for property commercial coverage.

Each application shall include evidence of the fund's inception, which establishes financial strength andliquidityofthememberstopayclaimspromptlyandsupportthefinancialability ofthefundto satisfyits obligations upontheestablishmentofthefund,includingall of the following:

* * * (xiii) Proof of advance A pledge to make an advance payment to the fund by each initial member of the fund of not less than twenty-five percent of that member's first year estimated annually earned normal premiums prior to the fund providingcoverage.Ifthefundprovidescoveragepriortoeveryinitialmember of the fund making the advance payment pledged pursuant to this Item, the commissionershallsuspendthefund'scertificateorauthorityuntileveryinitial member of the fund has made theirhis pledged advance payment, and the commissioner may take additional regulatory action as authorized in this Chapter.

refunds A.A.The fund established pursuant to this Chapter shall complywith all ofthe following items:

The* fund* established* pursuantPage to3 thisof Chapter5 shallCoding: complywith all ofthe following items:

* * * (3) Provide property commercial coverage as required bythis Chapter.

Page 3 of 6 Coding:

SLS 26RS-622 ENGROSSED SB NO.

341 (4)(a)ENROLLED Maintain,(3) onProvide aproperty fund-yearcommercial basis,coverage a contract or contracts of specific excess insurance or reinsurance of not less than an amount that is actuariallysound andapprovedbythedepartment.Themaximumretentionundertheexcessinsurance or reinsurance contracts shall not exceed amounts as mayrequired bebythis providedChapter. authorized by the department.

(4)(a) Maintain, on a fund-year basis, a contract or contracts of specific excess insurance or reinsurance of not less than an amount that is actuariallysound andapprovedbythedepartment.Themaximumretentionundertheexcessinsurance or reinsurance contracts shall not exceed amounts as may be provided authorized by the department.

22:651 through 661, andFinancialAccountingStandard Number113aspromulgatedandupdatedbytheNumber 113aspromulgatedandupdatedbythe Financial Accounting Standards Board.

Jurisdiction A.Exceptas otherwiseotherwiseprovided provided in Subsection B of this Section, ThetheThe Nineteenththe JudicialDistrictCourtNineteenthJudicial DistrictCourt shall haveexclusivejurisdiction overanycivil or criminal proceeding instituted pursuant to this Chapter.

B.Thefundandamemberofthefundmaycontractuallyagree,through Page 4 of 65 Coding: