Creates the Louisiana Insurance Guaranty Association and requires member insurers to stay members as a condition of authority to transact insurance.
§2056. Creation of the association A. There is created a private nonprofit unincorporated legal entity to be known as the "Louisiana Insurance Guaranty Association". All member insurers defined in R.S. 22:2055 shall be and remain members of the association as a condition of their authority to transact insurance in this state. The association shall perform its functions under a plan of operation established and approved under R.S. 22:2059 and shall exercise its powers through a board of directors established under R.S. 22:2057. B. The association is not and may not be deemed a department, unit, agency, or instrumentality of the state for any purpose, and shall not be subject to laws governing such departments, units, agencies, instrumentalities, commissions or boards of the state. All debts, claims, obligations, and liabilities of the association, whenever incurred, shall be the debts, claims, obligations, and liabilities of the association only and not of the state, its agencies, instrumentalities, officers, or employees. Association monies may not be considered part of the general fund of the state. The state may not budget for or provide general fund appropriations to the association, and the debts, claims, obligations, and liabilities of the association may not be considered to be a debt of the state or a pledge of its credit. C.(1) Notwithstanding the provisions of Subsections A and B of this Section, and except as provided by Paragraph (2) of this Subsection, the association shall be subject to R.S. 42:11 et seq. and to R.S. 44:1 through 41, and may be considered as if it were a public body for the purpose of those provisions. (2) The association may hold an executive session pursuant to R.S. 42:16 for discussion of one or more of the following, and R.S. 44:1 through 42 shall not apply to any documents as enumerated in R.S. 44:1(A)(2) which relate to one or more of the following: (a) Information on any matter relevant to the solvency, liquidation, rehabilitation, or conservation of any member insurer, until such insolvency has been declared or the member insurer has been placed in liquidation, rehabilitation, or conservation. (b) Matters protected by attorney-client privilege. (c) Matters with respect to claims, groups of similar claims, or claim files, except documents contained in those files which are otherwise deemed public records. (d) Prospective litigation against the association after formal written demand, prospective litigation by the association after referral to counsel for review, pending litigation by or against the association, or discussion of litigation strategy or settlement issues. (e) Any other matters now provided for or as may be provided for by the legislature. (f) Discussion by or documents in the custody or control of any committee or subcommittee of the association, or any member or agent thereof, or the board of directors or any member or agent thereof, if such discussion or documents would otherwise be protected from disclosure by any of the exceptions provided in this Paragraph. (g) A document or information protected from disclosure by any of the exceptions provided for in this Section is not subject to discovery, subpoena, or other disclosure, unless the association is compelled by a valid and final court order issued in a proceeding to which the association was provided with notice and an opportunity to object to the disclosure of the document or information. Added by Acts 1980, No. 81, §1. Acts 1990, No. 968, §1; eff. July 25, 1990; Redesignated from R.S. 22:1380 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2010, No. 959, §1, eff. July 6, 2010; Acts 2012, No. 271, §1; Acts 2023, No. 444, §1, eff. June 28, 2023. NOTE: See Acts 1990, No. 968, §2 for prospective application provisions. NOTE: Former R.S. 22:2056 redesignated as R.S. 22:416 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.