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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. 266
BY SENATOR LAFLEUR
INSURERS. Provide for the retention of original records of domestic insurers. (8/15/10)
AN ACT1
To amend and reenact R.S. 22:68, relative to domestic insurers; to provide for the retention2
of original records; to provide for securities; and to provide for related matters.3
Be it enacted by the Legislature of Louisiana:4
Section 1. R.S. 22:68 is hereby amended and reenacted to read as follows: 5
ยง68. Books and records of domestic insurer; securities6
A. Every domestic and redomesticated insurer shall keep its books, records,7
documents, accounts, and vouchers in such manner that its financial condition,8
affairs, and operations can be ascertained and so that its financial statements filed9
with the commissioner can be readily verified and its compliance with the law10
determined. Such insurer may cause any or all such books, records, documents,11
accounts, and vouchers to be photographed or reproduced on film. Any such12
photographs, microphotographs, optical imaging, or film reproductions of any13
original books, records, documents, accounts, and vouchers shall for all purposes be14
considered the same as the originals thereof and a transcript, exemplification, or15
certified copy of any such photograph, microphotograph, optical imaging, or film16
reproduction shall for all purposes be deemed to be a transcript, exemplification, or17 SB NO. 266
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Coding: Words which are struck through are deletions from existing law;
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certified copy of the original. Any original so reproduced may thereafter be disposed1
of or destroyed, as provided for in Subsection B of this Section, if provision is made2
for preserving and examining such reproductions.3
B. All such original books, records, documents, accounts, and vouchers, or4
such reproductions thereof, of the home office of any domestic company or of any5
principal United States office of a foreign or alien company located in this state shall6
be preserved and kept available in this state for the purpose of examination and until7
authority to destroy or otherwise dispose of such records is secured from the8
commissioner. At a minimum all such original records shall be maintained for the9
period commencing on the first day following the last period examined by the10
commissioner through the subsequent examination period, or three five years,11
whichever is greater. Such original records may, however, be kept and maintained12
outside this state if, according to a plan adopted by the company's board of directors13
and approved by the commissioner, it maintains suitable records in lieu thereof.14
C. Every domestic company shall keep its securities within the state of15
Louisiana except where:16
(1) On deposit with other states of the United States of America or political17
subdivisions thereof.18
(2) On deposit with foreign countries where the company is licensed to19
transact an insurance business.20
(3) Required for the normal transaction of the company's business and21
approved by the commissioner.22
D. Any domestic company may maintain for its securities a limited agency,23
custodial or depository account, or other type of account for the safekeeping of those24
securities; collecting the income from those securities; and providing supportive25
accounting services relating to such safekeeping and collection; all provided the26
domestic company maintains full investment discretion over those securities. Such27
account shall be with either (1) a bank, qualified under state law to administer trusts28
in this state, and operating as described in R.S. 6:534(B); or (2) a member of the29 SB NO. 266
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National Association of Securities Dealers, subject to the jurisdiction of the1
Securities and Exchange Commission, maintaining membership in the Securities2
Investors Protection Corporation, and having an agency office in this state. The bank3
or the National Association of Securities Dealers member, in safekeeping such4
securities, shall have all the powers, rights, duties, and responsibilities as it has under5
state law for holding securities in its fiduciary accounts. The commissioner of6
insurance is hereby authorized to promulgate rules and regulations pursuant to this7
Subsection.8
E D. Any director, officer, agent, or employee of any company who destroys9
any such books, records, or documents without the authority of the commissioner in10
violation of this Section or who fails to keep the books, records, documents,11
accounts, and vouchers required by this Section shall be fined not more than five12
thousand dollars.13
F. The commissioner of insurance may require that any domestic or14
redomesticated insurer maintaining its books, records, documents, accounts, and15
vouchers outside of this state pursuant to this Section shall, upon notice of a pending16
examination by the commissioner, deposit with the Department of Insurance such17
funds as the commissioner shall estimate as necessary for the conduct of the18
examination, including all expenses as set forth in R.S. 22:1985. The funds so19
deposited shall be maintained by the commissioner in a separate account for the20
purpose of paying such expenses during the progress of the examination as he may21
deem appropriate. The commissioner may require additional deposits where the22
expenses exceed the original estimate.23
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Mary Dozier O'Brien.
DIGEST
Present law provides that original books, records, documents, accounts, and vouchers, or
copies of these documents belonging to the home office of any domestic company or of any
principal U.S. office of a foreign or alien company shall be maintained until authority to
destroy is obtained or, at a minimum, for 3 years after the date they were last examined. SB NO. 266
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law deletes the provision regarding authority to destroy and sets the date for
maintaining all records at 5 years after the date they were last examined.
Present law provides provisions for companies keeping its securities within the state of
Louisiana, with exceptions.
Proposed law deletes all these provisions.
Present law provides that any domestic company may maintain for its securities a limited
agency, custodial or depository account or other type of account for the safekeeping of the
securities. The domestic company shall continue to have total discretion over the securities.
Present law provides that such an account shall be with specific types of institutions.
Proposed law deletes the provisions regarding the types of acceptable institutions and
maintains the commissioner of insurance's authority to promulgate rules.
Present law provides that the commissioner of insurance may require that any domestic
insurer who maintains its books and documents outside the state, shall, upon receiving notice
of a pending examination, deposit funds with the commissioner to cover the cost of the out
of state examination.
Proposed law deletes all provisions regarding review of a domestic insurer's books and
documents outside the state of Louisiana.
Effective August 15, 2010.
(Amends R.S. 22:68)