Opinion ID: 10021
Heading Depth: 2
Heading Rank: 1

Heading: liga

Text: In response to an increasing number of insolvencies among insurance companies statewide, the 1970 Louisiana Legislature enacted the Insurance Guaranty Association Law (IGAL).1 The IGAL “created LIGA as a non-profit, unincorporated entity to pay valid claims, up to statutory limits, in the event an insurer who was a 1 See LA. REV. STAT. ANN. §§ 22:1375 et seq. (West 1995). 2 member of [LIGA] became insolvent.”2 Specifically, when insurance companies that are members of LIGA become insolvent, LIGA is required to “assume . . . the benefits and obligations of the direct insurance policies underwritten by the defunct carrier.”3 The IGAL expressly provides, however, that several particular kinds of direct insurance will not be reinsured by LIGA.4 Significant to the instant appeal is the fact that “ocean marine insurance” is one of those kinds of insurance excluded from LIGA's reinsurance obligations.5 Since 1985, the precise meaning of “ocean marine insurance” has been the subject of much litigation. That litigation, and the 1989 amendments to the IGAL adopted in response to it, are discussed below.