The Louisiana Department of Insurance (LDI) has issued its Notice of Intent to promulgate Regulation 139, the implementing regulation for the state's captive insurance framework under Act 313 of 2025, the Creating Holistic Options in Coverage for Enterprise and Self-Insurance (CHOICES) Law. The notice was published in the Louisiana Register Vol. 52, No. 5 on 20 May 2026, after being circulated to legislative leaders on 27 April. Public comments close at 4:30pm on 10 June 2026 and should be directed to Jennifer Land, staff attorney at the LDI. To be codified at LAC 37:XIII.Chapter 215, Regulation 139 sets out the procedural and supervisory framework for captive insurance companies and risk retention groups (RRGs) domiciled in Louisiana, covering everything from pre-application requirements through dormancy and redomestication. Before submitting an application for admission, applicants must hold a pre-application meeting with the LDI's Office of Licensing. The session, which may be held in person or virtually, allows the department to understand the applicant's organisation, insurance needs, business plan and ownership structure, and to explain the application process and regulatory requirements. The regulation formalises a redomestication pathway under R.S. 22:550.27. Foreign captives and RRGs seeking to move to Louisiana must file a plan of redomestication, evidence of approval or non-objection from their current regulator, a certificate of good standing and amended organisational documents. The commissioner approves the move where licensing requirements are met and the transfer is not contrary to the interests of policyholders or the public. Redomesticated captives retain continuous corporate existence, with pre-existing rights, contracts and liabilities remaining in full force. Regulation 139 also codifies a dormant captive regime. A licensed captive that has ceased writing insurance and has no remaining policy liabilities, or has made provision satisfactory to the commissioner for any outstanding liabilities, may apply for a certificate of dormancy. Dormant captives must maintain their certificate of authority, submit annual statements and pay applicable fees, but may not write business other than runoff or settlement activity without prior approval. Captive managers, certified public accountants and qualified actuaries all require LDI authorisation. Actuaries must hold a minimum of three years' experience establishing or reviewing property and casualty loss and loss expense reserves, and meet the qualifications set out in the National Association of Insurance Commissioners (NAIC) Property and Casualty Annual Statement Instructions. RRGs chartered in Louisiana must maintain corporate governance standards substantially similar to those adopted by the NAIC. The regulation requires 30 days' written notice of any change in approved captive manager, CPA or actuary, and of any material change to operations, governance, financial condition or business plan. On reporting, captives must file an annual statement of financial condition by 1 March and an audited statement prepared in accordance with US GAAP by 30 June, alongside an annual actuarial certification of loss and loss expense reserves. The commissioner retains discretion to require property and casualty rate filings on an actuarially justified basis, and may disapprove a filing where solvency concerns arise. Applicants pay a US$500 fee for the initial application for a certificate of authority and a US$6,000 fee for the accompanying actuarial review. In its fiscal impact statement, the LDI says the regulation could encourage the formation and redomestication of captive insurers, generating potential economic benefit. Act 313, authored by Representative Dennis Bamburg Jr. and Senator Adam Bass, became law on 16 June 2025 without Governor Jeff Landry's signature and took effect on 1 August. It replaced references to "captive insurer" with "captive insurance company" and expanded the definition to encompass association captives, RRGs and affiliated reinsurance companies. Regulation 139 will take effect upon final publication in the Louisiana Register.
