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Committee advances bill to expand churches' self-insurance fund to cover commercial losses
Summary
Senator Edmonds' SB341 would broaden a Louisiana churches and nonprofit religious organizations self-insured fund to include commercial coverage—liability, contents, wind/hail and loss-of-use—accompanied by solvency provisions approved by the Department of Insurance; the committee adopted technical amendments and reported the bill as amended.
Baton Rouge — The House Insurance Committee reported Senate Bill 341 as amended on May 12 after sponsors and Department of Insurance staff said the measure would expand an existing churches and nonprofit religious organizations self-insured fund from property-only coverage to broader commercial coverage.
Dr. Johnson introduced the bill on behalf of Senator Edmonds and described the expansion as necessary to let the fund cover building damage, liability, furniture and equipment, wind and hail damage, and loss-of-use when a building cannot be used. "It allows, for example, damage or loss of the church buildings or other structures, premises, liability coverage," Senator Edmonds said.
Adam Patrick of the Department of Insurance told the committee the fund will include a requirement that participants pledge a certain amount depending on the insured value and that the department will review business plans and payments to ensure the solvency of the fund. "There will be a requirement that there's a pledge of a certain amount of money depending on the insured value of the property," Patrick said.
Sponsor and committee members emphasized the bill's intent to include small and large congregations so that smaller churches are not excluded. Representative Murray said the measure is "much needed" for churches still recovering from storms; Representative Wilder moved that the committee report the bill favorably. With no objections, the committee reported SB341 as amended and arranged for a co-author sheet to be circulated.
What happens next: SB341 was reported as amended and will move forward in the legislative process with the technical amendments adopted on the record.
