Statutory Deposit Requirements for Admitted Insurers

Louisiana law does not set a minimum statutory deposit requirement for domestic, foreign or alien admitted insurers. La. R.S. 22:801 provides that the Commissioner may hold a deposit in the following situations.

• Another state or jurisdiction requires a deposit in this state as a condition of seeking or maintaining a license or certificate of Authority or surplus lines approval in that state or jurisdiction.
• If the Commissioner, as a condition of the issuance or maintenance of a certificate of authority in this state, orders an insurer to make and maintain a deposit in this state.

To request that the Commissioner hold a deposit for an insurer to meet a requirement from another state or jurisdiction, the insurer must submit a completed Request for Commissioner to Hold Deposit on Behalf of Insurer form. You must attach a safekeeping or trust receipt confirming the deposit with a bank or savings and loan association doing business in Louisiana. The safekeeping or trust receipt must include all of the following:

• 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

The deposit must be in the form of money or bonds of the United States, the State of Louisiana or any political subdivision of the state with a market value of not less than the required amount as specified on the form.

The completed form and the safekeeping receipt may be submitted to [email protected] or by telephone to (225) 342-1259.

Any determination that an insurer will be required to hold a deposit as a condition to maintain a Certificate of Authority in Louisiana will be made at the time of the review of the initial application or an application to add a line of business and communicated to the applicant.