Louisiana Revised Statutes 22:498 – Policyholder’s liability
Terms Used In Louisiana Revised Statutes 22:498
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Commissioner: means the commissioner of insurance of Louisiana or the commissioner, director, or superintendent of insurance in any other state. See Louisiana Revised Statutes 22:482
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Insurance: means primary insurance, excess insurance, reinsurance, surplus lines insurance, and any other arrangement for shifting and distributing risk which is determined to be insurance under the laws of this state. See Louisiana Revised Statutes 22:482
- Liability: means legal liability for damages including costs of defense, legal costs and fees, and other claims expenses because of injuries to other persons, damage to their property, or other damage or loss to such other persons resulting from, or arising out of:
(i) Any business, whether profit or nonprofit, trade, product, services including professional services, premises, or operations. See Louisiana Revised Statutes 22:482
- Risk retention group: means any corporation or other limited liability association formed under the laws of any state, Bermuda, or the Cayman Islands:
(a) Whose primary activity consists of assuming and spreading all, or any portion, of the liability exposure of its group members. See Louisiana Revised Statutes 22:482
- State: means any state of the United States and the District of Columbia. See Louisiana Revised Statutes 22:482
A. Notwithstanding any other provisions in this Subpart, any contract of insurance issued by an admitted risk retention group may provide for the contingent liability of the policyholder for payment of actual losses and expenses incurred while such contract was in force, provided prior approval is granted by the commissioner of insurance.
B. Each assessable policy issued by an admitted risk retention group shall provide the following notice in ten-point print: “This is an assessable policy. The maximum potential contingent liability shall not exceed one annual premium per annum.”
C. The contingent liability of each member of the group for the obligations of the risk retention group shall not be joint but shall be individual and several.
D. “Risk retention group”, in this Section, means any corporation or other limited liability association organized pursuant to 15 U.S.C. § 3901 and 3902, the Federal Liability Risk Retention Act of 1986, having the following:
(1) The group is chartered or licensed as an insurance company in at least one state and is chartered or licensed as an insurance company or registered as a risk retention group in at least thirty states.
(2) The group maintains admitted assets at all times in an amount which is equal to or exceeds twenty million dollars.
Acts 1990, No. 138, §1; Redesignated from La. Rev. Stat. 22:2086 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 503, §1.