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Committee reports bill to codify Marcel exception and clarify oilfield additional‑insured coverage
Summary
The House Insurance Committee on March 24 voted to report House Bill 941 with amendments to codify a court‑created ‘‘Marcel’’ exception to the Louisiana Oilfield Anti‑Indemnity Act and to set rules for additional‑insured notification, group coverage and deductible allocation.
Chair Furman on March 24 moved House Bill 941 to a favorable report after members heard industry testimony that the measure would resolve longstanding confusion about when additional‑insured status is enforceable in oilfield contracts.
Representative Abare, the sponsor, said the bill would codify the "Marcel" court exception into statute to clarify insurance responsibilities under the Louisiana Oilfield Anti‑Indemnity Act, which he said has generated divergent court decisions since its passage about 45 years ago. Abare said the bill is the product of negotiations among operators, contractors and insurers.
"This is a compromise of all the parties and it will help codify rulings and give clarity going forward on the Marcel exception," said Mike Montlow of the Louisiana Oil and Gas Association, who described LOGA's role in convening affected parties.
Anita Woolverton, assistant general counsel at Expand Energy Corporation, testified that the bill pursues three objectives: bring clarity to the industry, reflect months of collaboration, and benefit all participants. She outlined specific provisions the committee adopted as amendments: a notification step for parties seeking additional‑insured status and a seven‑day notification window tied to renewal timing; a definition of group coverage left to the operator‑contractor agreement so beneficiaries are clear; and a deductible allocation framework that assigns the first $100,000 to the company purchasing the policy and any amounts above that threshold to the primary insured.
"It brings clarity to our industry," Woolverton said. She also told members the bill does not add an arbitration requirement; disputes about claims would remain legal matters for the parties or the courts.
Support was signaled from multiple insurers, industry groups and disability advocates in the room. Rep. Rhett Miller moved to report HB 941 favorable with amendments; the chair recorded no objections and the committee reported the bill with amendments by voice consent. The committee record lists the adopted amendment set as 2220 (substantive) and earlier technical amendments posted with the bill.
The measure will proceed from committee as reported with amendments for further House consideration.
