Statutory Deposit Requirements for Foreign/Alien Admitted Insurers
In order to obtain and maintain a Certificate of Authority in Louisiana, a foreign/alien insurer is required to maintain a statutory deposit in the amount of $100,000.00 in a bank doing business in Louisiana or a savings and loan association charted to do business in Louisiana and pledged to the Louisiana Department of Insurance OR to provide evidence the company maintains a deposit of not less than $500,000.00 in the domiciliary state for the benefit of all policyholders.
If the company chooses to maintain the Louisiana specific deposit in the amount of $100,000.00 pursuant to La. R.S. 22:801, 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.
Louisiana-specific 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 $100,000.00.
If the company chooses to maintain a home state deposit pursuant to La. R.S. 22:804 a Certificate of Deposit (UCAA Form # 7 or equivalent) issued by the proper domiciliary state official. A Certificate of Deposit must be submitted no later than March 1 every year and must reflect information for a date no earlier than December 31 of the previous year.
The required documents and questions about statutory deposit requirements may be directed to firstname.lastname@example.org or by telephone to (225) 342-1259.