LA HB635

Amends and reenacts Louisiana's captive insurance company regulatory framework (R.S. 22:550.1-550.32), establishing comprehensive rules for formation, licensing, and operation of domestic captive insurance companies including pure captives, association captives, risk retention groups, branch captives, and affiliated reinsurance companies.

Sets minimum capital and surplus requirements: $250,000 for pure captives, $500,000 for association captives, $1 million for risk retention groups, and $5 million for affiliated reinsurance companies, with commissioner authority to require additional capital based on business type and volume.

Establishes premium tax structure of 0.15% on direct premiums and tiered rates (0.0214% to 0.0024%) on assumed reinsurance premiums, with annual minimum tax of $7,500 and maximum of $200,000 per captive.

Creates confidentiality protections for application materials, examination reports, and regulatory documents submitted to the Department of Insurance, with limited exceptions for legal proceedings, law enforcement, and information sharing with other insurance regulators.

Establishes new fee schedule including $500 for initial certificate of authority application and $6,000 for actuarial review, and creates a dormancy status option for captives that cease insurance operations with reduced capital requirement of $25,000.