Louisiana Senate Bill SB607

Louisiana 2010 Regular Session

• Introduced: 3/29/10
• Refer: 3/29/10
• Report Pass: 5/10/10
• Engrossed: 5/13/10
• Refer: 5/17/10
• Refer: 6/10/10
• Refer: 6/11/10
• Report Pass: 6/15/10
• Enrolled: 6/21/10
• Chaptered: 6/30/10
• Passed: 6/30/10

Caption

Provides for regulation and operation of certain group self-insurance funds for workers' compensation. (8/15/10)

Impact

The implications of SB 607 are significant for the state's insurance landscape, particularly regarding workers' compensation. By emphasizing the non-insurer status of group self-insurance funds, the bill narrows the regulatory framework within which these funds operate. It mandates regular examinations by the insurance commissioner, thus increasing oversight and potentially leading to higher operational standards. This level of scrutiny aims to protect employees by ensuring that funds are not only financially viable but also capable of meeting their obligations related to workers' compensation benefits.

Summary

Senate Bill 607 is designed to amend the existing provisions governing group self-insurance funds for workers' compensation in Louisiana. The bill clarifies that such funds should not be classified as insurers or deemed as insurance in their operations. This restructuring aims to formalize the examination protocols by the commissioner of insurance, ensuring compliance, accountability, and clarity in the functioning of group self-insurance funds. Additionally, the bill introduces new standards that self-insurance funds must meet to secure their operation in the state, including enhanced reporting and financial review requirements.

Sentiment

Discussions around the bill have been largely positive among regulatory bodies and employers, who see it as a necessary reform to enhance accountability and transparency within the self-insurance framework. However, there may be concerns from some sectors about the increased regulatory burden that could come with more stringent examination processes. The sentiment reflects a balance between ensuring employee protection and maintaining a business-friendly environment where employers can manage their liabilities effectively.

Contention

Notable points of contention include the potential for increased operational costs for group self-insurance funds due to heightened regulatory compliance. Stakeholders worry that these costs might be passed on to employers and, consequently, employees. Some legislators argue that while the intent is to bolster employee protections, there could be unintended consequences that make self-insurance less attractive. The debate emphasizes the need for careful consideration of how regulations are structured to ensure that they do not hamper the very objectives they seek to promote.