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HB 1151

INSURANCE: Provides relative to the equity and investments of domestic insurers

2026 Regular Session Introduced by Mike Bayham

Louisiana HB 1151 tightens and clarifies equity and fund investment limits for domestic insurers, including stricter caps for life insurers and new thresholds for non-life insurers

Effective date: 08/01/2026.
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Bill Summary · HB 1151

Summary of Louisiana HB 1151 (2026 Session)

Title

Insurance: Provides relative to the equity and investments of domestic insurers

Purpose and Intent

HB 1151 governs how domestic insurers in Louisiana may hold equity interests and invest, with the aim of clarifying and tightening limits on equity investments while allowing insurers to acquire equity interests in solvent business entities. The bill distinguishes between life insurers and insurers other than life, imposing specific thresholds for each.

Key Provisions

1) Equity Interests in Solvent Entities

  • Insurers may acquire equity interests in solvent business entities that meet any of the following:
    • Domiciled in the United States
    • Domiciled in a foreign jurisdiction if the entity is listed on a qualified exchange
    • Permitted under existing law (R.S. 22:601.12)

2) Restrictions for Life Insurers

  • A life insurer shall not acquire an investment if it would cause:
    • The aggregate equity interests held to exceed 20% of its admitted assets
    • The portion of equity interests not listed on a qualified exchange to exceed 5% of admitted assets
    • Any investment that would cause the life insurer to exceed the above limitations
  • Life insurers are prohibited from short selling equity investments unless they cover the short sale by owning the equity or an unrestricted right exercisable within six months
  • Certain investments that life insurers may acquire under this bill are limited or prohibited to ensure compliance with the specified thresholds

3) Provisions for Insurers Other than Life

  • Insurers other than life insurers may acquire preferred stocks in U.S. entities, subject to:
    • No single issuer and its affiliates (excluding U.S. government and certain related entities) may exceed 3% of admitted assets
    • The aggregate amount of such preferred stocks may not exceed 25% of admitted assets
  • For other investments (excluding exchange-traded funds and mutual funds), the following limits apply:
    • The aggregate investments under this subsection must not exceed 50% of admitted assets, and equity interests not listed on a qualified exchange must not exceed 5% of admitted assets
  • For investments including exchange-traded funds (ETFs) and mutual funds:
    • ETFs and mutual funds together must not exceed the greater of 50% of admitted assets or 100% of the insurer’s surplus as regards policyholders
    • The investment in any single ETF or mutual fund is limited to 10% of admitted assets
  • Overall cap for all equity interests (including preferred stocks, ETFs, mutual funds, and other equity interests, whether held directly or indirectly) shall not exceed the greater of 50% of admitted assets or 100% of the insurer’s surplus as regards policyholders

4) Commissioner Oversight

  • The commissioner may require that investments in ETFs, mutual funds, pooled investment vehicles, or other investment companies be treated for purposes of the Subpart as if the insurer directly owned a proportional share of the assets held by the fund or vehicle, to aid evaluation of the investment portfolio.

5) General Applicability

  • The proposed framework applies to life insurers and insurers other than life insurers, with differences in thresholds as noted.
  • The bill preserves some existing protections around overall investment limits while updating specific equity and fund thresholds.

Affected Entities

  • Domestic insurers in Louisiana, including:
    • Life insurers (subject to tighter thresholds and short-selling restrictions)
    • Non-life (non-life) insurers (subject to thresholds for preferred stocks, ETFs, mutual funds, and overall equity investments)

Procedural and Timeline Notes

  • This summary reflects changes proposed to Louisiana Revised Statutes (R.S. 22:601.8).
  • Legislative history indicates:
    • Read by title and favorably reported (12-0) in April 2026
    • Referred to the Insurance Committee earlier in the session
    • Action history shows passage through readings and engrossment in April 2026

Practical Impact

  • Insurers would face clearer, consolidated limits on how much equity and fund-based exposure they may hold.
  • Life insurers face stricter caps and short-selling restrictions, potentially affecting investment strategies and product offerings.
  • Non-life insurers gain clarified authority to invest in solvent U.S. and certain foreign entities, including preferred stocks, with explicit asset-based caps.
  • The commissioner’s enhanced oversight could affect how ETF/mutual fund investments are evaluated and reported.

If you’d like, I can provide a section-by-section comparison with current law (R.S. 22:601.8) or a brief table of the numerical thresholds.

Compiled from official sources — confirm details with the bill’s official record.

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