Louisiana Issues Notice of Intent for Captive Insurance Regulation 139

The Louisiana Department of Insurance has issued a notice of intent to promulgate Regulation 139, establishing procedural and supervisory requirements for captive insurance companies and risk retention groups domiciled in the state under Louisiana's Creating Holistic Options in Coverage for Enterprise and Self-Insurance (CHOICES) law.  

According to the notice, Regulation 139 is intended to implement Act 313 of the 2025 Louisiana legislative session, which created a statutory framework governing the formation, licensing, regulation, and taxation of domestic captive insurance companies and risk retention groups.  

The proposed regulation would apply to all entities applying for licensure or operating as captive insurance companies or risk retention groups domiciled in Louisiana pursuant to the CHOICES Law.  

Among the proposed requirements, applicants would be required to participate in a pre-application meeting with the department before submitting a captive application for admission. According to the notice, the meeting is intended to allow regulators to review the applicant's organization, insurance needs, business plan, and ownership structure, while also explaining regulatory requirements and the application process.  

The proposed regulation also outlines procedures for redomestication. Under the notice, a captive insurance company or risk retention group organized in another jurisdiction could become domiciled in Louisiana upon approval by the commissioner and submission of required documentation, including a redomestication plan, evidence of approval or non-objection from the current regulator, and amended organizational documents consistent with Louisiana law.  

Regulation 139 additionally establishes a framework for dormant captive insurance companies. A captive insurer or risk retention group that has ceased transacting insurance business and has no remaining liabilities, or has made satisfactory provision for outstanding liabilities, could apply for a certificate of dormancy. Dormant captives would be required to maintain their certificate of authority, continue filing annual statements, and pay applicable fees while prohibited from resuming insurance operations without regulatory approval.  

The notice also addresses qualifications and oversight requirements for captive managers, certified public accountants, and actuaries. Captive managers would be required to receive authorization from the commissioner before providing management services. Actuaries would be required to meet qualification standards contained in the National Association of Insurance Commissioners Property and Casualty Annual Statement Instructions and possess at least three years of relevant reserving experience.  

Additional provisions would require captive insurance companies and risk retention groups to provide written notice at least 30 days prior to changes involving approved captive managers, actuaries, or certified public accountants, as well as material changes affecting operations, governance, financial condition, or business plans.  

The proposed regulation also includes provisions governing capital and surplus, required deposits, exposure to loss limitations, annual financial reporting, actuarial certifications, and rate filing authority. Risk retention groups chartered and licensed in Louisiana would be required to maintain corporate governance standards substantially similar to those adopted by the National Association of Insurance Commissioners.  

Under the notice, captive insurance companies and risk retention groups would be required to file annual financial statements by March 1 and audited financial statements prepared in accordance with generally accepted accounting principles by June 30. Annual actuarial certifications of reserves would also be required.  

The department stated that public comments regarding Regulation 139 will be accepted through 4:30 p.m. on June 10, 2026. According to the notice, the regulation would become effective upon final publication in the Louisiana Register.