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HB 941

INSURANCE: Provides with respect to additional insured coverage

2026 Regular Session Introduced by Mike Bayham and 10 co-sponsors

HB 941 requires a separate written request, insurer quote, and direct payment for additional insured coverage in oil/gas agreements, with 30/7-day notice before renewal.

Effective date: 08/01/2026.
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Bill Summary · HB 941

Summary of HB 941 (Louisiana, 2026) – Insurance: Additional Insured Coverage

Purpose and Intent

HB 941, as amended by the House Committee on Insurance, clarifies and tightens the requirements for obtaining and enforcing additional insured coverage under certain oil and gas agreements. The bill seeks to codify a judicial standard (from Marcel v. Placid Oil Co., 1994) and establish specific procedural rules that govern when an additional insured can acquire coverage and how premiums and notifications must be handled.

Key Provisions and Changes

  • Scope of Applicable Arrangements

    • Applies to oil/gas wells, water wells, or drilling for minerals, with allowance that the “well” can comprise multiple wells.

  • Enforceability and Conditions for Additional Insured Coverage (Proposed R.S. 9:2780(H))

    • Additional insured coverage obtained via an agreement is enforceable only under defined conditions.
    • A party seeking coverage must: 1) Submit a separate written request for an additional insurance premium quote to the named insured and/or their agent/broker. 2) Receive a premium quote from the named insured’s insurer or authorized representative. 3) Make direct payment to the named insured’s insurer or authorized representative for the requested coverage (for the requesting party or for the group it represents).

  • Group Coverage Specifics (R.S. 9:2780(H)(2))

    • Group coverage is valid only if the premium is expressly quoted for group coverage and payment is for the corresponding group amount.

  • Notice Requirements Upon Purchase (Amendment-Adopted Language)

    • Once coverage is actually purchased, the named insured, its insurer, or authorized representatives must notify the additional insured in writing at least 30 days before the next renewal premium is due, or within 7 days of binding the renewal coverage—whichever is earlier (Committee amendment).

  • Renewal and Policy Year Considerations

    • If, in a policy year, the additional insured did not follow the required request or payment process, or did not timely pay in the prior year, the named insured/insurer is not required to provide the 30-day notice before renewals. The additional insured must make a new written request.

  • Deductible/Retention Allocation (R.S. 9:2780(H)(3))

    • When coverage is obtained under this regime, the additional insured (not the named insured) bears the deductible/retention up to $100,000; the named insured funds any amount above $100,000.

  • Limitations and Non-Enforceable Provisions (R.S. 9:2780(H)(4))

    • Any agreement requiring the named insured to fund the first part of the deductible/retention up to $100,000 is null and unenforceable under the new framework.

  • Defense and Indemnity Provisions

    • HB 941 does not negate existing prohibitions on defense and indemnity terms; those protections remain in place.

  • Illustrative Activities (R.S. 9:2780(J))

    • The list of activities in present law is made illustrative rather than exhaustive, clarifying the scope of applicable agreements.

Who Is Affected

  • Named insureds (typically operators or principal parties in oil/gas/drilling agreements)
  • Additional insureds seeking coverage from the named insured’s insurer
  • Insurance agents/brokers involved in the process
  • Insurers and authorized representatives handling premium quotes and payments
  • Policyholders representing a group seeking coverage (e.g., a consortium or multiple entities)

Procedural and Timeline Aspects

  • Explicit written request and quotation steps must be completed before coverage can be valid.
  • Notification to the additional insured must occur no later than 30 days before renewal premiums are due or within 7 days of binding renewal coverage (whichever is earlier).
  • If renewal timing or prior-year compliance lapses occur, a new written request must be made.

Amendments Consolidated

  • The committee amendments add the 30-day/7-day notice requirement and make minor technical edits.

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

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