Update: Louisiana Senate Passes Bill That Would Alter Insurer License Fee Discount Provisions
May 21, 2009
Update: The Louisiana Senate amended and passed SB 331 (summarized below) unanimously on third reading today, May 21, 2009. A motion to reconsider the bill was tabled. The bill was re-engrossed and next proceeds to the Louisiana House of Representatives for consideration. The successful amendments can be viewed by clicking the corresponding hyperlinks below:
About SB 331
The State of Louisiana currently allows for a reduction of insurer license fees if the payer files a sworn statement showing that, as of December 31st of the reporting period, certain admitted assets of the insurer were invested in qualifying Louisiana investments.
Senate Bill 331, which was introduced in the Louisiana State Legislature by Senator Julie Quinn during early May 2009, would retain these provisions, as well as the definition of qualifying Louisiana investments, but would require that the value of the qualifying investment equal the amount of such an investment maintained in the State during the entire twelve months of the reporting period (ending December 31st).
Present Louisiana law defines a “qualifying Louisiana investment” to include cash on deposit in any bank or savings and loan association, or savings bank or trust company holding funds in trust that is operating in the State with a main office, or one or more branches. As amended by the Louisiana Senate Committee on Insurance, SB 331 retains this provision, but requires that such bank, association, or holding company be domiciled in Louisiana.
The bill, which would be effective on August 15, 2009, was amended and passed on third reading by the Senate on May 21. Representatives from the Louisiana domestic insurance industry had met with Senator Quinn and other bill stakeholders this week and agreed upon amendments to SB 331, a draft of which are attached.
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