The Louisiana Department of Insurance finalized the promulgation of Regulation 139—Captive Insurance Companies.
The regulation sets rules and procedural requirements for the administration of captive insurance companies and risk retention groups domiciled in the state. Prior to submitting the Captive Application, applicants must schedule a meeting with the department through the Office of Licensing.
The name of the captive insurer or risk retention group must be approved by the commissioner. Anyone acting as a captive manager for the company must be competent and knowledgeable and must be authorized by the commissioner. The company must also retain a CPA in good standing and a qualified actuary who are authorized by the commissioner.
The commissioner may require captive insurers and risk retention groups to deposit a safekeeping or trust receipt with a bank located in the state. The deposit will be held in trust for the protection of policyholders and to address financial solvency concerns.
Captive insurers and risk retention groups must annually file, by March 1, a statement of their financial condition, on a form prescribed by the commissioner. Annually, by June 13, the companies must file an audited statement of their financial condition prepared in accordance with GAAP. Finally, they must annually file an actuarial certification of loss reserves and loss expense reserves.
Captive insurers and risk retention groups may be required to file rates for property and casualty lines, which may be disapproved by the commissioner if there are financial solvency concerns.
The regulation is effective September 20, 2026, and can be found in the Louisiana Register.
Ray Sugrim
Ray Sugrim is an Insurance Editor with FC&S Expert Coverage Interpretation, a division of National Underwriter Company and Arc Network. Ray is responsible for helping develop and edit content for subscribers. Ray is a St John’s University graduate with a degree in Risk Management & Insurance and is a CPCU candidate.