Louisiana

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Summary

2015 Update. NHSCA sponsored legislation to move this registration law out of the DOI to the LA Secretary of State (SOS) via SB 152. It passed and is effective January, 2016. The NHSCA provided an advance an advance registration letter and notice via email of December 3, 2016. All NHSCA members should now have received the final registration and be registered with a new bond with the SOS per the instructions. The SOS is Tom Scheduler. The primary contact is Karla Bonaventure in the Commercial Division. We have the Secretary's commitment that the total revenue and repair numbers and other info dealing with rejected claims will only be received and filed, and not published or included in the web site. The SOS intention is clearly registration and not regulation. NHSCA is working to have these additional filings due March 1 each year repealed. Stay tuned. Archive History below: 2014 Update: SB 135 was adopted in Spring session SEE BELOW It requires a financial statement to be provided to the commissioner annually "showing that the provider is solvent." It also contains a requirement to begin submitting claims data beginning in 2016. NHSCA opposed this bill. It passed despite credible assurances otherwise. NHSCA is actively working to repeal the law. The LDI has made no indication to date how it intends to enforce the financial statement filing. Since the law states home service contracts are not insurance, GAAP accounting is required and statutory accounting could not be legally imposed. Until January 1, 2010, Home service contracts are accepted as exempt from the insurance code due to authoritative Attorney General Opinion 98-121. In 2008, the Lousianna Association of Realtors (LAR) asked the NHSCA to support it in adopting a new model approach to home service contract provider registration and regulation. This effort resulted in the development of a new NHSCA Home Service Contract Model Law. In June, 2009, the new Home Service Contract Provider Act to be codfied as CS 22:1806 and effective January 1, 2010 was adopted as HB 704. This effort ushered in a new era for the NHSCA and state regulation to treat home service contracts under their own distinct legislative scheme reconginzing the differences between home, automobile and extended retail, new consumer product contracts. As always, some modifications to the pure NHSCA model were required politically to obtain passage bu the general model approach remains intact. Initial registration is $ 600 and $ 250 every other year after that.