Amendment vs bill House Committee Amendment, #5470, INS, Adopted vs Enrolled

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Regular Session ENROLLED SENATE BILL NO.
HCASB341 4902 5470 HOUSE COMMITTEE AMENDMENTS Regular Session AmendmentsproposedbyHouseCommitteeonInsurancetoEngrossedSenateBillNo.341 by Senator Edmonds AMENDMENT NO.
341 BY SENATORS EDMONDS AND HODGES AND REPRESENTATIVES BAMBURG, BAYHAM, GALLE, GLORIOSO, HEBERT, ILLG, MELERINE, MURRAY AND WILDER AN ACT To amend and reenact R.S.
1 On page 2, line 12, delete "shall" AMENDMENT NO.
12:1853, the introductory paragraph of 1854, 1854(3) and (7), the introductory paragraph of 1855(B)(1), 1855(B)(2)(b)(xiii), 1856(A)(3) and (4), and 1870 and to enact R.S.
2 On page 3, line 20, after "made" and before "pledged" change "their" to "his" AMENDMENT NO.
12:1855(A)(5)(c) and 1856(H) and to repeal R.S.
3 On page 5, delete line 6 in its entirety and insert in lieu thereof the following:
12:1855(A)(5)(b) and 1856(E), relative to the Louisiana Churches and Nonprofit ReligiousOrganizationsSelf-InsuredFund;toprovidefordefinitions;toprovidefor initial financial requirements;
"Title 12 of the Louisiana Revised Statutes of 1950." Page 1 of 1 CODING:
to provide for records and recordkeeping;
Wordsinstruckthroughtypearedeletionsfromexistinglaw;wordsunderscored are additions.
to provide fortechnicalchangesbytheLouisianaStateLawInstitute;toprovideforaneffective date;
and to provide for related matters.
Be it enacted by the Legislature of Louisiana:
Section 1.
R.S.
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 herebyamended and reenactedand R.S.
12:1855(A)(5)(c)and 1856(H) areherebyenacted:
§1853.
Authorization;
requirements;
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 assuming the obligations set forth in this Chapter.
B.
Pools may also be created for commercial coverages that are analogoustocommercialpropertyinsuranceintheprivatemarketasapproved by the commissioner.
B.C.Thedepartmentshallpromulgatenecessaryrulesinaccordancewiththe AdministrativeProcedureActtoimplementandregulatetheactivitiesauthorizedin this Chapter.
§1854.
Definitions Page 1 of 5 Coding:
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:
* * * (3)"Fund"meanstheself-insurancefundestablishedpursuanttothisChapter to provide property insurance commercial coverage for churches and nonprofit religiousorganizationsandshallbeknownastheLouisianaChurchesandNonprofit Religious Organizations Self-Insured Fund.
* * * (7)"PropertyCommercialcoverage"meanscoverageforthedamageorloss of a structure or building and may include any or all of but is not limited to the following:
(a) Premises liability coverage.
(b) Contents coverage for furniture or equipment.
(c) Wind and hail coverage.
(d) Loss of use coverage.
(e) Medical payments coverage.
* * * §1855.
Agreement to pool liabilities;
initial financial requirements A.
* * * (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:
Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
SB NO.
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341 ENROLLED whichever is longer.
* * * B.(1) The fund shall submit to the department an application, on an application form prescribed and furnished 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:
* * * (2)Theapplicationshallbeinwriting,onaformprovidedbythedepartment, and shall comply with all of the following:
* * * (b) All applications shall be accompanied bythe following items:
* * * (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 his pledged advance payment, and the commissioner may take additional regulatory action as authorized in this Chapter.
* * * §1856.
Requirements;
excess insurance;
administrative and service companies;
status;
liability;
refunds A.The fund established pursuant to this Chapter shall complywith all ofthe following items:
* * * Page 3 of 5 Coding:
Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
SB NO.
341 ENROLLED (3) Provide property commercial coverage as required bythis Chapter.
(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.
(b) For purposes of authorizing the purchase of reinsurance as required by this Subsection, the fund shall be deemed an insurer.
The excess insurance or reinsurance shall be purchased only from a company having a rating of A- by A.M.
Best Rating Services, Inc., A- by Fitch Ratings, A by Weiss Ratings, A- by S&P Global Ratings, or A3 byMoody's Investors Service, or better, and this reinsurance may be purchased from admitted or nonadmitted companies, provided that the reinsurance purchase complies with the provisions of R.S.
22:651 through 661, andFinancialAccountingStandard Number 113aspromulgatedandupdatedbythe Financial Accounting Standards Board.
The department shall approve all excess insurance policies or reinsurance agreements prior to use by the fund.
* * * H.
All members of the fund shall establish and maintain an aggregate loss fund or a stop loss provision as part of the excess insurance policy placements in an amount equivalent to not more than one year's premium for each risk underwritten.
The trust fund for each risk underwritten shall maintain a cash reserve for each coverage year sufficient to cover payment of the entire aggregate loss fund, as defined in the applicable excess insurance policy or policies for that risk.
* * * §1870.
Jurisdiction A.Exceptas otherwiseprovided in Subsection B of this Section, The the NineteenthJudicial DistrictCourt shall haveexclusivejurisdiction overanycivil or criminal proceeding instituted pursuant to this Chapter.
B.Thefundandamemberofthefundmaycontractuallyagree,through Page 4 of 5 Coding:
Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
SB NO.
341 ENROLLED apolicyofinsuranceorotherwise,toresolveaclaimdisputethroughmediation pursuant to the Louisiana Mediation Act, R.S.
9:4101 et seq., or appraisal pursuant to R.S.
22:1807.11 et seq.
Section 2.
R.S.
12:1855(A)(5)(b) and 1856(E) are herebyrepealed.
Section 3.
The Louisiana State Law Institute, pursuant to its statutory authority, is hereby directed to change "property coverage" to "commercial coverage" in Chapter 28 of Title 12 of the Louisiana Revised Statutes of 1950.
Section 4.
This Act shall become effective upon signature bythe governor or, if not signedbythegovernor,uponexpirationofthetimeforbillstobecomelawwithoutsignature by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana.
If vetoed bythe governorand subsequentlyapprovedbythe legislature, this Act shall become effective on the dayfollowing such approval.
PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED:
Page 5 of 5 Coding:
Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.