CurrentLouisiana Department of InsurancePolicy N/A
Insure Louisiana Incentive Program (Emergency Rule 48)
Customize your policy alerts
Sign up for all Louisiana Department of Insurance policy alerts
Know when Louisiana Department of Insurance releases new policies or updates existing guidance.
Monitor payer policy activity
Receive email alerts as soon as relevant payer policies are published or updated.
Emergency Rule 48 establishes standards, procedures, and eligibility for the Insure Louisiana Incentive Program to award matching capital grants to property insurers to increase availability and affordability of residential and commercial property insurance in Louisiana.
Policy Summary
PayerLouisiana Department of Insurance
PolicyInsure Louisiana Incentive Program (Emergency Rule 48)
Policy CodePolicy N/A
Change TypeNo material change
Effective DateFeb 6, 2023
Next Review DateN/A
Key ActionDepartment will issue public invitation(s) for grant applications; applications must be fully completed and submitted to the Office of Financial Solvency.
SourceLink
POLICY UPDATE CHANGES
No material clinical or coverage changes in this revision.
$10,000,000minimum capital & surplus
400%initial RBC ratio
$2,000,000min insurer commitment
$2M–$10Mper-grant range
20%earn rate (per year)
Program Eligibility, Awards, and Compliance
Grant eligibility and limitations
Eligibility and application requirements for receiving matching capital grants under the Incentive Program.
ALL of the following
ALL of the following
- Capital and surplus at least $10,000,000
- Financial strength rating of AM Best 'B+' or better OR Demotech 'A' or better (AM Best 'A' required for licensed surplus lines insurers)
- Risk-based capital ratio of 400% at initial grant award and maintained during participation
ALL of the following
- Sufficient reinsurance program for the amount of business to be written pursuant to the Incentive Program
ALL of the following
- Certificate of authority exists for the line(s) to be written in Louisiana OR contemporaneous application for such licensure has been filed with the Company Licensing Division
ALL of the following
- Applicant (or management of a new insurer) has satisfactory prior experience in writing or managing property insurance
- Grant application must accurately disclose prior experience; commissioner may request additional information and investigate adequacy
ALL of the following
- Maintain premium-to-surplus ratio, net of reinsurance, no greater than 3:1
- Gross premium-to-surplus ratio no greater than 8:1 (as applied by the Department)
- No more than 10% of surplus exposed to any one risk
- No more than 15% of net written premiums in any one parish without commissioner approval
ALL of the following
- Insurers with an officer or director who served in that capacity at an insurer that filed bankruptcy or was insolvent may be ineligible
- Insurers whose parent or controller served in that capacity at an insurer that filed bankruptcy or was insolvent may be ineligible
ALL of the following
- Applicant must submit a fully completed Department application form to the Office of Financial Solvency
- Application must designate a point of contact (telephone, email, physical address)
- Only fully completed applications or those deemed acceptable by the commissioner will be considered
- Surplus lines insurers must file the grant application contemporaneously with an application for licensure; licensure application may be processed contingent upon grant approval
Applicant eligibility criteria
Minimum solvency and eligibility criteria for applicants
ALL of the following
- Capital and surplus of at least $10,000,000
- Financial strength rating: AM Best 'B+' or better OR Demotech 'A' or better (AM Best 'A' for surplus lines)
- Risk-based capital ratio of at least 400% at initial award and maintained during participation
- Sufficient reinsurance for proposed business
ANY of the following
- Existing certificate of authority in Louisiana for the line(s) to be written
- OR contemporaneous filing of application for such licensure with the Company Licensing Division
ALL of the following
- Satisfactory prior experience in writing property insurance OR new insurer whose management has satisfactory prior experience
- Application must accurately disclose prior experience; commissioner may investigate and determine adequacy
ALL of the following
- Premium-to-surplus ratio, net of reinsurance, no greater than 3:1
- Gross premium-to-surplus ratio no greater than 8:1
- Maximum surplus exposure to any one risk of 10%
- No more than 15% of net written premiums in any one parish without commissioner approval
Grant allocation and product criteria
Grant award, allocation, and product requirements
ALL of the following
- Individual grant amount for initial (and subsequent) invitations must be no less than $2,000,000 and no more than $10,000,000
- Total grants to a single property insurer may not exceed $10,000,000 across invitations
- Commissioner has discretion to award and allocate grants as deemed appropriate and may create an advisory committee; preference and priority given to currently licensed admitted insurers
- Commissioner shall allocate at least 20% of total available for grants to domestic property insurers for the initial allocation unless insufficient qualified domestic applicants
ALL of the following
- Grantee shall write new property insurance in Louisiana consisting of residential, commercial, mono-line, or package property policies
- Policies must include wind and hail coverage with limits equal to other perils
- Net written premiums of at least $2 of premium for each $1 of combined newly allocated insurer capital plus the state grant (example: $2M capital + $2M grant => $8M net premiums)
- Net written premium requirements satisfied only by coverages reported on Annual Statement State Page lines 1 (Fire), 2.1 (Allied Lines), 3 (Farmowners), 4 (Homeowners), or 5.1 (Commercial Multi-peril Non-liability)
ALL of the following
- In the first 24 months after receipt of the grant, grantee must write at least 50% of net written premiums for policyholders with insured property located in the specified parishes listed in §4815.B.3
- Grantee must maintain this net written premium ratio over five years to fully earn the matching capital fund grant (subject to possible extensions granted by the commissioner)
Reporting, monitoring, earning, and default
Reporting, monitoring, compliance, earning and default rules
ALL of the following
- Segregate and report any grants received on the line titled 'Aggregate Write-In for Special Surplus Funds' in NAIC Annual and Quarterly Statement blanks
- Report annually by March 1 and quarterly by May 15, August 15, and November 15 on a form acceptable to the commissioner the amount of premium written by parish, premium by parish for the specified parishes, premium by parish taken-out from Louisiana Citizens, and amount of premium by parish including that written under the Incentive Program
- Report quarterly (May 15, Aug 15, Nov 15) and annually by June 1 detailed catastrophe reinsurance program information including premium-to-surplus ratio (net of reinsurance), gross premium-to-surplus ratio, retentions, limits, reinstatements, current rating of grantee and reinsurers, and modeled PMLs for 1-in-50 through 1-in-250 events with at least five scenarios/versions
- Report quarterly (May 15, Aug 15, Nov 15) risk-based capital for the preceding quarter
ALL of the following
- Commissioner may conduct examinations, financial analyses, and investigations annually or more often as necessary to verify compliance
- Department will aggregate responses and submit a report to the legislature within 30 days of the end of each reporting period
ALL of the following
- Commissioner shall notify grantee in writing that it has earned the 20% portion of the grant upon determination of compliance
- Commissioner may grant an extension not more than one year to a grantee who shows promise of future compliance
- If grantee defaults, commissioner may institute legal action to recover all sums due in the 19th Judicial District Court; unearned grant funds must be repaid with legal interest and pro rata earned calculations apply (see illustrative example); grantee has 30 days to request reconsideration and retains appeal rights to the division of administrative law
Incentive calculation example
Example calculation methodology for pro rata earned incentive based on multiple categories (requirement, actual, factor, weight, earned).
ALL of the following
- For each category, compute Factor = Actual / Requirement; Earned for category = Factor × (portion of earned capital allocated to that category)
- Example inputs and results: Total Net Written Requirement = $20,000,000 (Weight = 50%), Actual = $15,000,000 → Factor = 0.75 → Earned = $375,000; Parishes Requirement = $10,000,000 (Weight = 50%), Actual = $8,000,000 → Factor = 0.80 → Earned = $400,000; Total Earned = $775,000
Cooperative agreement requirement
Requirement for grantee to enter a cooperative endeavor agreement.
ALL of the following
- Grantee shall execute a cooperative endeavor agreement in a form prescribed by the commissioner and subject to approval by the Office of State Procurement of the Division of Administration
ALL of the following
- Execution of the cooperative endeavor agreement is a condition of grant participation and is required in furtherance of R.S. 22:2361 et seq. and R.S. 22:2363.A
Confidentiality
Confidentiality stance for program records.
ALL of the following
- Any and all records, documents, and information associated with the Incentive Program that are deemed confidential or privileged pursuant to R.S. 44:1 et seq., Title 22, or any state or federal law will remain confidential or privileged
ALL of the following
- Confidentiality applies to records associated with the Incentive Program as provided by applicable state and federal law and statute
Severability
Severability clause preserving other provisions if one is held invalid.
ALL of the following
- If any provision of Emergency Rule 48 or its application to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of Emergency Rule 48 that can be given effect without the invalid provision or application; the provisions of Emergency Rule 48 are severable
Effective date
Effective date of the emergency rule.
ALL of the following
- Emergency Rule 48 shall be effective on February 6, 2023
Key Numeric Thresholds and Code Tables
Eligible reporting linesmixed
| Lines 1, 2.1, 3, 4, 5.1 | Eligible lines for reporting net written premiums on Annual Statement State Page (Fire, Allied Lines, Farmowners, Homeowners, Commercial Multi-peril Non-liability) |
Example calculationmixed
| Illustrative numeric calculation of earned incentive amounts based on requirement, actual, factor, weight, and earned (example: Total Net Written requirement $20,000,000; Actual $15,000,000; Factor .75; Earned $375,000; Parishes requirement $10,000,000; Actual $8,000,000; Factor .80; Earned $400,000; Total earned $775,000). |
inv-12: Minimum capital and surplus — $10,000,000
Minimum capital and surplus$10,000,000
Financial strength rating requirementAM Best 'B+' or better, or Demotech 'A' or better (AM Best 'A' for licensed surplus lines)
Reinsurance requirementSufficient reinsurance for the amount of business to be written under the Incentive Program
inv-13: Risk-based capital ratio — 400% at initial award
Required risk-based capital ratio at initial award400%
Ongoing maintenanceMust be maintained during participation in the Incentive Program
VerificationCommissioner monitors solvency and may require additional information or examinations
inv-14: Minimum insurer capital commitment — $2,000,000
Minimum newly allocated insurer capital commitment$2,000,000
Matching requirementGrantee must combine newly allocated insurer capital with state grant for net written premium ratio calculations
Total grant cap per insurerGrant totals to a property insurer may not exceed $10,000,000 across invitations
inv-15: Net written premium to capital/grant ratio — $2 premium for each $1 of newly allocated capital plus grant (example: $2M capital + $2M grant => $8M net premiums)
Net written premium to combined capital/grant ratioAt least $2 of net written premium for each $1 of the total of newly allocated insurer capital combined with the state grant
Illustrative exampleIf insurer allocates $2,000,000 capital and receives $2,000,000 grant, grantee must write at least $8,000,000 in net premiums
Eligible premium reporting linesNet written premiums must be reported on Annual Statement State Page lines 1, 2.1, 3, 4, or 5.1
inv-16: Per-grant minimum/maximum — No individual grant less than $2,000,000 or greater than $10,000,000
Per-grant minimumNo individual grant less than $2,000,000
Per-grant maximumNo individual grant greater than $10,000,000
Aggregate grant limitTotal grants to a property insurer may not exceed $10,000,000 across invitations
inv-17: Earn rate — 20% per year over five years (full grant earned after five years of compliance)
Earn rate per year20% of the grant per earning period (per year)
Full earning periodGrant is fully earned after five years of full compliance
Extension for good causeCommissioner may extend the five-year period up to one additional year for good cause
inv-18: Example requirement amounts — Requirement example: Total Net Written $20,000,000; Parishes listed $10,000,000; Earned example totals $775,000
Example — Total Net Written requirement$20,000,000
Example — Parishes listed requirement$10,000,000
Example — Total earned under illustration$775,000 (pro rata earned amount in example)
Applications, Awards, Agreements, and Enforcement
Documentation Required
Public invitation; complete application submitted to Office of Financial Solvency
The Department will publish an initial public invitation for grant applications (minimum 30 days) describing the Incentive Program and setting a deadline. Grant applications must be fully completed on the Department form (which the Department may revise) and submitted to the Department's Office of Financial Solvency by certified mail, commercial courier, or electronic mail; late submissions may be considered only for good cause or if the commissioner allows curing of nonsubstantive deficiencies.
- Invitation published at least 30 days on Department website and in state/national insurance journals.
- Applications must use the Department form and be fully completed; Department may revise the form.
- Applications submitted to the Office of Financial Solvency by certified mail, courier, or email.
- Failure to timely submit may render applicant ineligible; commissioner may extend deadline or allow cure for nonsubstantive deficiencies.
Prior Authorization
Commissioner's discretion and preference for licensed admitted insurers
The commissioner has discretion to award and allocate grants, may establish an advisory committee, and will give preference to admitted insurers currently licensed in Louisiana for the lines of business subject to the grant; individual grant amounts for initial invitations must fall within the $2,000,000–$10,000,000 range.
- Commissioner may consider any factors deemed applicable, relevant, and appropriate.
- Preference and priority to property insurers currently licensed to write the line(s) that are the subject of the grant.
- For initial invitation, individual grants not less than $2,000,000 nor in excess of $10,000,000.
Documentation Required
Surplus lines applicants must file for licensure and obtain certificate of authority before funding
Surplus lines insurers may apply but must file an application for licensure contemporaneously with the grant application and must obtain a certificate of authority before receiving grant funds; if they do not timely apply or are not approved, they are not entitled to receive a grant.
- Surplus lines applicant must file licensure application with the Department at the same time as the grant application.
- If requested in writing, the licensure application may be processed contingent upon approval of a grant award.
- A surplus lines insurer must obtain a certificate of authority before it may actually receive grant funding.
- Failure to timely apply for admission or obtain approval disqualifies the surplus lines insurer from receiving a grant.
Denial Risk
Legal recoupment for grantee default — venue specified
If a grantee defaults, the commissioner may institute legal action to recover all sums due by the grantee in default in the 19th Judicial District Court.
- Legal recoupment of sums due from a grantee in default is through the 19th Judicial District Court.
Documentation Required
Execute cooperative endeavor agreement as prescribed and approved
A grantee must execute a cooperative endeavor agreement in a form prescribed by the commissioner and subject to approval by the Office of State Procurement of the Division of Administration.
- Cooperative endeavor agreement form prescribed by the commissioner.
- Agreement is subject to approval by the Office of State Procurement.
Defined Terms
inv-24: Authorized Insurer — Authorized Insurer: an insurer with a certificate of authority in Louisiana.
Authorized InsurerAn insurer with a certificate of authority in Louisiana
CommissionerThe Commissioner of Insurance of the state of Louisiana
Reporting PeriodFinancial statement reporting dates of March 31, June 30, September 30, and December 31
inv-25: Grantee — Grantee: a property insurer to whom a grant is made from the Incentive Program Fund.
Grantee definitionA property insurer to whom a grant is made from the Incentive Program Fund
Earning Period (defined)Timeframe in which the grantee can earn 20 percent or the pro rata share of the grant award, including extensions
Newly Allocated Insurer CapitalCapital committed by an insurer to match any grant funds received from the Incentive Program Fund
inv-26: Incentive Program Fund — Incentive Program Fund: the Insure Louisiana Incentive Fund established pursuant to R.S. 22:2371.
Incentive Program FundThe Insure Louisiana Incentive Fund established pursuant to R.S. 22:2371 and Emergency Rule 48
Incentive Program (capitalized)The Insure Louisiana Incentive Program created, authorized and administered pursuant to R.S. 22:2361 et seq. and Emergency Rule 48
Legal InterestInterest at the rate fixed in R.S. 13:4202
inv-27: Net Written Premiums — Net Written Premiums: total premiums paid by policyholders for policies complying with Emergency Rule 48, minus return premiums, and incl...
Net Written Premiums (definition)Total premiums paid by policyholders for policies that comply with Emergency Rule 48, minus return premiums or other premium credits; includes premium from participation in depopulation/take-out of Louisiana Citizens
Reporting linesNet written premiums reported on Annual Statement State Page under lines 1 (Fire), 2.1 (Allied Lines), 3 (Farmowners), 4 (Homeowners), or 5.1 (Commercial Multi-peril Non-liability)
Exclusions/AdjustmentsNet premiums are exclusive of assessments and other charges as defined in R.S. 22:2369(A)
inv-28: Net written premiums reported on Annual Statement State Page under lines 1, 2.1, 3, 4, or 5.1 — Net written premiums
Eligible reporting lines for net written premiumsAnnual Statement State Page lines 1, 2.1, 3, 4, or 5.1
Policy types includedResidential, commercial, mono-line, or package property insurance including wind and hail coverage with limits equal to other perils
PurposeThese lines are the only reported premiums that satisfy the net written premium requirements of the grant
inv-29: The enumerated Louisiana parishes listed in §4815.B.3 (e.g., Acadia, Allen, Ascension, ..., West Feliciana) — Specified Parishes
Specified parishes (partial list)Acadia, Allen, Ascension, Assumption, Beauregard, Calcasieu, Cameron, East Baton Rouge, East Feliciana, Evangeline, Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, Sabine, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Landry, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Vermilion, Vernon, Washington, West Baton Rouge, West Feliciana
Use in award factorsCommissioner considers ability to market in these parishes and may require 50% of net written premiums in first 24 months to be in these parishes to fully earn grant
inv-30: Authority — Authority note referencing Acts No. 1 and 2 of the 2023 Extraordinary Session and R.S. 22:11, 22:2361 et seq., and the Administrative Pro...
Statutory and rule authorityPromulgated in accordance with Act No. 1 and Act No. 2 of the 2023 Extraordinary Session, R.S. 22:11, 22:2361 et seq., and the Administrative Procedure Act (R.S. 49:950 et seq.)
Department authorityDepartment of Insurance, Office of the Commissioner
inv-31: Confidential records — Records, documents, and information associated with the Incentive Program that are deemed confidential or privileged under R.S. 44:1 et s...
Confidentiality of recordsAny and all records, documents and information associated with the Incentive Program that are deemed confidential or privileged pursuant to R.S. 44:1 et seq., Title 22, or any state or federal law will remain confidential or privileged
ScopeApplies to records associated with the Incentive Program maintained by the Department
Legal basisConfidentiality governed by R.S. 44:1 et seq., Title 22, or other applicable state or federal law
Policy Summary
PayerLouisiana Department of Insurance
PolicyInsure Louisiana Incentive Program (Emergency Rule 48)
Policy CodePolicy N/A
Change TypeNo material change
Effective DateFeb 6, 2023
Next Review DateN/A
Key ActionDepartment will issue public invitation(s) for grant applications; applications must be fully completed and submitted to the Office of Financial Solvency.
SourceLink
On This Page
OpenPayer is powered by Trek Health's payer performance platform. Trek continuously ingests, validates, and normalizes Transparency in Coverage data alongside payer policies and other commercial payer data to create a structured payer intelligence foundation. OpenPayer uses this foundation to deliver personalized search results, dynamically generated policy pages, and tailored policy monitoring based on each user's payers, specialties, billing codes, and areas of interest. The same intelligence powers broader payer performance workflows, including reimbursement benchmarking, contract evaluation, payer negotiations, and financial decision-making.