SLS 10RS-541 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010
SENATE BILL NO. 226
BY SENATOR LAFLEUR
INSURANCE DEPARTMENT. Provides for the examination of a workers compensation
self-insurance fund by the Department of Insurance in accordance with department
procedures. (8/15/10)
AN ACT1
To amend and reenact R.S. 23:1197(C), relative to workers compensation self-insurance2
funds; to provide for examination of a fund by the commissioner of insurance; and3
to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 23:1197(C) is hereby amended and reenacted to read as follows: 6
ยง1197. Authority of Department of Insurance7
* * *8
C. The department shall have the authority to examine the affairs, books,9
transactions, workpapers, files, accounts, records, assets, and liabilities of a fund to10
determine compliance with this Subpart and with any rules and regulations11
promulgated by the department or orders and directives issued by the commissioner.12
In addition, to the extent necessary and material to the examination of a fund, the13
department shall have the authority to examine the affairs, books, transactions,14
workpapers, files, accounts, and records of any fund's administrator, service15
company, certified public accountant, and actuary generated in the course of16
transacting business on behalf of the group self-insured fund being examined. Such17 SB NO. 226
SLS 10RS-541 ORIGINAL
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
examination work shall be conducted by employees of the department, or1
independent certified public accounting firms in business for a minimum of five2
years and contracted with the department for this purpose. All examinations shall3
be conducted in accordance with the provisions of R.S. 22:1981, et seq. The4
reasonable expenses of the examinations shall be paid by the fund being examined.5
* * *6
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Linda Nugent.
DIGEST
Present law, relative to group self-insurance funds for workers' compensation, authorizes the
department of insurance to examine the affairs, books, transactions, work papers, files,
accounts, records, assets, and liabilities of a fund to determine compliance with the law
governing such funds and with any rules, regulations, and directives by the department.
Further authorizes the department to conduct an examination of any fund's administrator,
service company, certified public accountant and actuary. Requires that the examination
work be conducted by department employees or independent certified public accounting
firms in business for at least five years that are contracted with the department for this
purpose. Provides that reasonable expenses shall be paid by the fund being examined.
Proposed law requires self-insurance funds for workers' compensation to be subject to the
same examination procedures as are other insurance companies. Such provisions include,
among others, frequency of examinations, who would conduct an examination,
confidentiality issues, hearings, contested expenses, failure to pay expenses and penalty,
scope of examinations, time issues, production of books and records, and power to examine
under oath and subpoena witnesses.
Effective August 15, 2010.
(Amends R.S. 23:1197(C))