Provides for the Louisiana Churches and Nonprofit Religious Organizations Self-Insured Fund. (gov sig)

Senate Bill 341 amends Louisiana Revised Statutes Chapter 28 of Title 12 to expand the scope of insurance coverage available through self-insurance pools formed by churches and nonprofit religious organizations. The bill changes the existing authorization for property insurance pooling to allow pools organized for commercial coverages, which the statute now defines as coverage for damage or loss to a member's immovable structures or buildings. The legislation creates a formal definition of "commercial coverage" that encompasses premises liability, contents coverage for furniture or equipment, wind and hail coverage, loss of use coverage, and medical payments coverage. Additionally, the bill grants churches and nonprofit religious organizations the ability to form self-insurance pools for other types of risk beyond those listed in the definition, provided they obtain approval from the Louisiana Commissioner of Insurance. The amendments also direct the Louisiana State Law Institute to make conforming technical changes by replacing references to "property coverage" with "commercial coverage" throughout Chapter 28 of Part IV of Title 12.

Participating churches and nonprofit religious organizations will benefit from expanded options for obtaining insurance coverage through pooled self-insurance arrangements rather than relying exclusively on traditional commercial insurance markets. Member organizations must maintain positive net worth and financial solvency to participate in these pools and must contribute to the pooled fund based on their membership. The pools themselves, known as the Louisiana Churches and Nonprofit Religious Organizations Self-Insured Fund, will operate as repositories for member contributions used to provide the defined commercial coverages plus any additional risk coverage approved by the insurance commissioner. Religious denominations as well as individual organizations may participate in forming these pools, allowing for broader risk-sharing arrangements across faith communities.

The bill operates within the regulatory framework established by the Louisiana Insurance Code and the Administrative Procedure Act. The Department of Insurance maintains authority to promulgate rules necessary to implement and regulate self-insurance pool activities pursuant to the Administrative Procedure Act. The existing statutory structure in Title 12, Chapter 28, already established the foundational requirements that pool members demonstrate positive net worth and financial solvency, and the bill preserves these conditions while broadening the types of coverage and risks that may be pooled. The amendment takes effect upon the governor's signature or the expiration of the time for gubernatorial action without signature, as provided by the Louisiana Constitution.