Statutory Deposit Requirements for
Vehicle Mechanical Breakdown Insurers
or Property Residual Value Insurers

In order to obtain and maintain a license as a vehicle mechanical breakdown insurer or property residual value insurer in Louisiana, a company is required to maintain a statutory deposit or surety bond of $150,000.00.

If the company chooses to maintain a statutory deposit of $150,000.00 pursuant to La. R.S. 22:365, a safekeeping or trust receipt must be supplied to the LDI as evidence of the required deposit. This receipt must contain all of the following information;

Name of the institution holding the deposit

Full legal name of the insurer for which the deposit is being held

A description of the security

Identification number of the security

Amount of the security

Maturity date of the security

Specific statement that the security is pledged to the Louisiana Commissioner of Insurance

The signature of an officer of the institution holding the deposit.

It is the responsibility of the insurer to track and maintain the deposit and to be certain that renewal notices are submitted to the LDI prior to the maturity date. Deposits must be maintained in the form of cash or bonds of the United States, the state of Louisiana, or any political subdivision thereof with a market value of not less than $150,000.00.

If the company chooses to maintain a surety bond to satisfy the requirements, you may find information on the surety bond requirements by clicking here.

The required documents and questions about statutory deposit requirements may be directed to [email protected] or by telephone to (225) 342-1259.