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Regular Session, 2010 ENROLLED
SENATE BILL NO. 607
BY SENATOR LONG
AN ACT1
To amend and reenact R.S. 22:46(9)(a) and (10), 47(5), 48(A)(15), 451(A), and 452(1)(b),2
R.S. 23:1168(A), 1195(A)(1), 1197(C) and the introductory paragraph of R.S.3
23:1197(F), and R.S. 23:1200, and R.S. 44:4.1(B)(11), to enact R.S. 23:1197(G) and4
1200.6 through 1200.17, and to repeal R.S. 22:461(J) and 1982, relative to workers'5
compensation group self-insurance funds; to provide that such funds are not insurers6
nor to be deemed insurance; to provide for compliance examinations of group self-7
insurance workers' compensation funds by the commissioner of insurance; to provide8
for hearings of matters as a result of such examinations; and to provide for related9
matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 22:46(9)(a) and (10), 47(5), 48(A)(15), 451(A) and 452(1)(b) are12
hereby amended and reenacted to read as follows:13
§46. General definitions14
In this Code, unless the context otherwise requires, the following definitions15
shall be applicable:16
* * *17
(9)(a) "Insurance" is a contract whereby one undertakes to indemnify another18
or pay a specified amount upon determinable contingencies. It shall include any trust,19
plan or agreement, popularly known as employee benefit trusts, not specifically20
exempted from state regulation under Public Law 93-406, except collectively21
bargained union welfare plans, single employer plans or plans of the state or political22
subdivisions. The term "insurance" shall not include any arrangement or trust23
formed under Subpart J of Part I of Chapter 10 of Title 23 of the Louisiana24
Revised Statutes of 1950.25
* * *26
(10) "Insurer" includes every person engaged in the business of making27
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contracts of insurance, other than a fraternal benefit society. A reciprocal, an inter-1
insurance exchange, insurance exchange syndicate, or a Lloyds organization is an2
"insurer". Any person who provides an employee benefit trust as specified in3
Subparagraph (9)(a) of this Section is an insurer. A health maintenance organization4
is an insurer but only for the purposes enumerated in R.S. 22:242(7). The term5
"insurer" shall not include any arrangement or trust formed under Subpart J6
of Part I of Chapter 10 of Title 23 of the Louisiana Revised Statutes of 1950, nor7
shall such arrangement or trust be deemed an insurer.8
* * *9
§47. Kinds of insurance10
Insurance shall be classified as follows:11
* * *12
(5) Workers' compensation. Insurance of the obligations accepted by,13
imposed upon, or assumed by employers under law for workers' compensation,14
which may include employers' liability. Any arrangement or trust formed under15
Subpart J of Part I of Chapter 10 of Title 23 of the Louisiana Revised Statutes16
of 1950, is not insurance nor shall such arrangement or trust be deemed to be17
insurance.18
* * *19
§48. Types of insurers and other risk bearing entities20
A. The following entities are regulated by specific provisions in the Louisiana21
Insurance Code:22
* * *23
(15) Group self insurers, provided that any arrangement or trust formed24
under Subpart J of Part I of Chapter 10 of Title 23 of the Louisiana Revised25
Statutes of 1950, shall not be regulated under the Louisiana Insurance Code.26
* * *27
§451. Scope of provisions28
A. This Subpart shall be applicable to and shall regulate self-insurers and29
self-insurance plans, as defined in this Subpart, which are subject to jurisdiction of30 SB NO. 607 ENROLLED
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the commissioner of insurance under this Title. This Subpart shall not be applicable1
to any workers' compensation plan, except as otherwise provided in this Subpart.2
This Subpart shall not apply to any arrangement or trust formed under3
Subpart J of Part I of Chapter 10 of Title 23 of the Louisiana Revised Statutes4
of 1950.5
* * *6
§452. Definitions7
For purposes of this Subpart, unless the context clearly indicates otherwise,8
the following terms shall have the meanings ascribed to them:9
(1)(a) * * *10
(b) The term "self-insurance plan" shall not include any arrangement or11
trust formed under Subpart J of Part I of Chapter 10 of Title 23 of the12
Louisiana Revised Statutes of 1950, or single employer plans, plans exempt from13
the state insurance laws under the provisions of the Employee Retirement Income14
Security Act of 1974 (29 U.S.C. §1001 et seq.), except as provided in R.S. 22:463,15
the Office of Group Benefits, plans of political subdivisions, health maintenance16
organizations regulated under the Health Maintenance Organization Act, R.S. 22:24117
et seq., plans regulated under R.S. 33:1342, 1343, 1346, or 1349, and plans otherwise18
regulated as insured plans under this Title. A plan of a fraternal benefit society or a19
labor organization shall not be considered a self-insurance plan for the purposes of20
this Subpart to the extent that such plan provides health and accident benefits to its21
members and any of their dependents that are supplemental to those of an employer-22
provided plan.23
* * *24
Section 2. R.S. 23:1168(A), 1195(A)(1), 1197(C) and the introductory paragraph of25
R.S. 23:1197(F), and R.S. 23:1200 are hereby amended and reenacted and R.S. 23:1197(G)26
and 1200.6 through 1200.17 are hereby enacted to read as follows:27
§1168. Ways of securing compensation to employees28
A. An employer shall secure compensation to his employees in one of the29
following ways:30 SB NO. 607 ENROLLED
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(1) By insuring and keeping insured the payment of such compensation with1
any stock corporation, mutual association, or other concern authorized to transact the2
business of workers' compensation insurance in this state,. including group self-3
insurance as authorized in R.S. 23:1195 et seq. or R.S. 33:1341 et seq. When an4
insurer issues a policy to provide workers' compensation benefits pursuant to the5
provisions of the Workers' Compensation Act, the insurer shall file, or cause to be6
filed, with the director a notice in such form and detail as the director may prescribe7
by rule and regulation. The notice shall contain the name, address, and principal8
occupation of the employer, the number, effective date, and expiration date of the9
policy, and such other information as may be required by the director. The notice10
shall be filed by the insurer within thirty days after the effective date of the policy.11
(2) By entering into an agreement with a group self-insurance fund as12
provided for in R.S. 23:1191 et seq.13
(3) By entering into an agreement with an interlocal risk management14
agency as provided for in R.S. 33:1341 et seq.15
(2)(a)(4) By using any combination of life, accident, health, property,16
casualty or other insurance policies offered:17
(i)(a) By any stock corporation, mutual association or other concern18
authorized to transact the business of insurance in this state;19
(ii)(b) By any group of individual, unincorporated alien insurers with assets20
held in trust for the benefit of its United States policyholders in a sum not less than21
one hundred million dollars and which is authorized to transact insurance in at least22
one state; or23
(iii)(c) By any other insurer which has been approved by the commissioner24
of insurance, and has capital and surplus, or the equivalent thereof, of at least ten25
million dollars and its financial condition, as evidenced by its most recent annual26
statement, conforms substantially to the same standards of solvency which would be27
required if such insurer were licensed in this state.28
(3)(5) By furnishing satisfactory proof to the director of the employer' s29
financial ability to pay such compensation. The director, pursuant to rules adopted30 SB NO. 607 ENROLLED
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by the office for an individual self-insured or own risk carrier, including but not1
limited to rules relative to security and excess coverage, shall require that an2
employer:3
(a) Deposit with the director securities or a surety bond in an amount4
determined by the director which would be at least an average of the yearly claims5
for the last three years.6
(b) Provide proof of excess coverage with such terms and conditions as is7
commensurate with their ability to pay the benefits required by the provisions of the8
Workers' Compensation Act.9
* * *10
§1195. Authorization; trade or professional association; initial financial11
requirements12
A.(1) Any five or more Louisiana employers who are not public entities, each13
of whom has a positive net worth, is financially solvent, and is capable of assuming14
the obligations set forth under this Chapter, and who are all members of the same15
bona fide trade or professional association may agree to pool their liabilities to their16
employees on account of personal injury and occupational disease arising out of or17
incurred during the course and scope of the employment relationship. This18
arrangement shall not be an insurer, shall not be deemed to be insurance and shall19
not be subject to the provisions of Chapter 1 of Title 22 of the Louisiana Revised20
Statutes of 1950 Louisiana Insurance Code. The member employers of the21
arrangement likewise shall not be insurers or be subject to the Louisiana22
Insurance Code.23
* * *24
§1197. Authority of Department of Insurance25
* * *26
C.(1) The department shall have the authority to examine the affairs, books,27
transactions, workpapers, files, accounts, records, assets, and liabilities of a fund to28
determine compliance with this Subpart and with any rules and regulations29
promulgated by the department or orders and directives issued by the commissioner.30 SB NO. 607 ENROLLED
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In addition, to the extent necessary and material to the examination of a fund, the1
department shall have the authority to examine the affairs, books, transactions,2
workpapers, files, accounts, and records of any fund's administrator, service3
company, certified public accountant, and actuary generated in the course of4
transacting business on behalf of the group self-insured fund being examined. Such5
examination work shall be conducted by employees of the department, or6
independent certified public accounting firms in business for a minimum of five7
years and contracted with the department for this purpose. All examinations shall8
be conducted in accordance with provisions of this Subpart. The reasonable9
expenses of the examinations shall be paid by the fund being examined.10
(2) Upon the request of the commissioner of insurance, each group self-11
insurance fund established pursuant to this Subpart shall cause a rate review12
to be conducted by a national independent actuarial firm, provided that the13
commissioner shall not make more than two requests in any calendar year for14
a rate review under the provisions of this Subsection. Such firm shall report its15
findings to the commissioner of insurance.16
(3) All work papers, recorded information, documents, information,17
and copies thereof produced by, obtained by, or disclosed to the commissioner18
or any other person, pursuant to the authority of the commissioner under this19
Subpart, shall be given confidential treatment and shall not be subject to20
subpoena and may not be made a part of the response to any public records21
request, except in the following circumstances:22
(a) Information has been provided pursuant to R.S. 23:1200.6(C) or R.S.23
23:1200.7(I).24
(b) Documents are audited financial statements which have been filed25
with the Department of Insurance.26
* * *27
F. The department shall conduct a hearing pursuant to Part XXIX of the28
Louisiana Insurance Code in accordance with the provisions of this Subpart:29
G. Nothing in this Section shall prohibit the legislative auditor from30 SB NO. 607 ENROLLED
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reviewing records and conducting an audit in accordance with R.S. 24:513.1
* * *2
§1200. Review of rate determination3
Any fund shall provide a reasonable procedure for any member aggrieved by4
the fund to request in written form a review of the application of the rating system5
for the coverage afforded by the fund. The fund shall have thirty days from receipt6
to grant or deny the request in written form. If the fund rejects the request or fails to7
grant or reject the request within the thirty-day period, the member may, within thirty8
days of the expiration of the thirty-day period, appeal to the department for a hearing.9
The hearing before the department shall be conducted in accordance with Part XXIX10
of the Louisiana Insurance Code the provisions of this Subpart, and the11
department, after the hearing, may affirm, modify, or reverse the action taken by the12
fund.13
* * *14
§1200.6. Examination of group self-insurance fund for workers' compensation15
program16
A. The commissioner of insurance shall make an examination, not less17
frequently than once every five years, of all group self-insurance funds18
established pursuant to this Subpart doing business in this state and at any19
other time when in the opinion of the commissioner it is necessary for such an20
examination to be made.21
B. Upon determining that an examination should be conducted, the22
commissioner shall appoint one or more examiners to perform the examination23
and instruct them as to the scope of the examination. In conducting the24
examination, the examiner or examiners shall observe those guidelines and25
procedures as the commissioner may deem appropriate.26
C. Nothing contained in this Part shall be construed to limit the27
commissioner's authority to use any final or preliminary examination report,28
any examiner or fund work papers or other documents, or any other29
information discovered or developed during the course of any examination in30 SB NO. 607 ENROLLED
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the furtherance of any legal or regulatory action which the commissioner may,1
in his sole discretion, deem appropriate.2
D. Nothing contained in this Part shall be construed to limit the authority3
of the commissioner to terminate or suspend any examination in order to4
pursue other legal or regulatory action pursuant to the applicable laws of this5
state. Findings of fact and conclusions made pursuant to any examination shall6
be prima facie evidence in any legal or regulatory action.7
§1200.7. Examination reports8
A. All examination reports shall be comprised only of facts appearing9
upon the books, records, or other documents of the group self-insurance fund10
or as ascertained from the testimony of its officers or agents or other persons11
examined concerning its affairs, and such conclusions and recommendations as12
the examiners find reasonably warranted from the facts.13
B. Not later than sixty days following completion of the examination, the14
examiner in charge shall file with the Department of Insurance a verified15
written report of examination under oath. Upon receipt of the verified report,16
the Department of Insurance shall transmit the report to the fund examined,17
together with a notice, which shall afford the fund examined a reasonable18
opportunity, of not more than thirty days, to make a written submission or19
rebuttal with respect to any matters contained in the examination report.20
C. Within thirty days of the end of the period allowed for the receipt of21
written submissions or rebuttals, the commissioner shall fully consider and22
review the report, together with any written submissions or rebuttals and any23
relevant portions of the examiner's work papers and enter an order for one of24
the following:25
(1) Adopt the examination report as filed, or with modification or26
corrections. If the examination report reveals that the group self-insurance fund27
is operating in violation of any law, rule, regulation, or prior order or directive28
of the commissioner, the commissioner may order the fund to take any action29
the commissioner considers necessary and appropriate to cure such violation.30 SB NO. 607 ENROLLED
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(2) Reject the examination report with direction to the examiners to1
reopen the examination for purposes of obtaining additional documentation,2
data, information, and testimony.3
D. Within thirty days of rejection by the commissioner of an examination4
report in accordance with Paragraph (C)(2) of this Section, unless the5
commissioner extends such time for reasonable cause, the examiner in charge6
shall refile with the Department of Insurance a verified written report of7
examination, as may be modified or corrected, under oath. Upon receipt of the8
refiled verified report, the Department of Insurance shall transmit the refiled9
report to the fund examined, together with a notice similar to the notice10
provided for in Subsection B of this Section, except that the notice shall indicate11
that the report is a refiled report.12
E. Within thirty days of the end of the period allowed for the receipt of13
written submissions or rebuttals, as provided for in Subsections B and D of this14
Section, the commissioner shall fully consider and review the refiled report,15
together with any written submissions or rebuttals and any relevant portions16
of the work papers of the examiner and enter an order for one of the following:17
(1) Adopt the examination report as refiled or with modification or18
corrections. If the refiled examination report reveals that the group self-19
insurance fund is operating in violation of any law, rule, regulation, or prior20
order or directive of the commissioner, the commissioner may order the fund21
to take any action the commissioner considers necessary and appropriate to22
cure such violations.23
(2) Reject the examination report and order a hearing in accordance24
with the provisions of this Subpart, for purposes of obtaining additional25
documentation, data, information, and testimony.26
F. All orders entered pursuant to Paragraph (C)(1) or (E)(1) of this27
Section shall be accompanied by findings and conclusions resulting from28
consideration by the commissioner and review of the examination report,29
relevant examiner work papers, and any written submissions or rebuttals. Any30 SB NO. 607 ENROLLED
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order shall be served upon the company by certified mail, together with a copy1
of the adopted examination report. Within thirty days of the issuance of the2
adopted report, the group self-insurance fund shall file affidavits executed by3
each of its trustees stating, under oath, that they have received a copy of the4
adopted report and related orders.5
G. Within thirty days of receipt of notification of the order of the6
commissioner to the group self-insurance fund made pursuant to Subsection F7
of this Section, the fund may make written demand for a hearing in accordance8
with the provisions of this Subpart.9
H.(1) The hearing provided for under Paragraph (E)(2) or Subsection G10
both of this Section shall be a confidential proceeding. At the conclusion of the11
hearing, the commissioner shall enter an order adopting the examination report12
as filed or refiled, or with modification or corrections, and may order the fund13
to take any action the commissioner considers necessary and appropriate to14
cure any violation of any law, regulation, or prior order of the commissioner.15
(2) The commissioner shall issue such order within thirty days after the16
termination of a hearing and shall, subject to Subsection E of this Section, give17
a copy of the order to each person to whom notice of the hearing was given or18
required to be given.19
I.(1) Upon the adoption of the examination report under either20
Paragraph (C)(1), or (E)(1), or Subsection H all of this Section, the21
commissioner shall continue to hold the content of the examination report as22
private and confidential information for a period not to exceed thirty23
consecutive days, except to the extent provided in R.S. 23:1200.6(C) and24
Subsection B of this Section. Thereafter, the commissioner may open the report25
for public inspection provided no court of competent jurisdiction has stayed its26
publication.27
(2) Notwithstanding any provision to the contrary, nothing shall28
prevent, or be construed as prohibiting, the commissioner from disclosing the29
content of an examination report, preliminary examination report or results, or30 SB NO. 607 ENROLLED
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any matter relating thereto, to the insurance department of this or any other1
state or country, or to law enforcement officials of this or any other state or2
agency of the federal government at any time, provided such agency or office3
receiving the report or matters relating thereto agrees, in writing, to hold it4
confidential and in a manner consistent with this Subpart.5
(3) If the commissioner determines that regulatory action is appropriate6
as a result of any examination, he may initiate any proceedings or actions as7
provided by law.8
J. All work papers, recorded information, documents, and copies9
thereof produced by, obtained by, or disclosed to the commissioner, or any10
other person, in the course of an examination made under this Subpart, or11
pursuant to the authority of the commissioner under this Subpart, shall be given12
confidential treatment and are not subject to subpoena and may not be made13
public by the commissioner or any other person, except to the extent provided14
in R.S. 22:1200.6(C) and Subsection I of this Section. The parties shall agree, in15
writing prior to receiving the information, to provide to it the same confidential16
treatment as required by this Section, unless the prior written consent of the17
fund to which it pertains has been obtained.18
K.(1) No examiner may be appointed by the commissioner if such19
examiner, either directly or indirectly, has a conflict of interest or is affiliated20
with the management of or owns a pecuniary interest in any person or entity21
subject to examination under this Subpart.22
(2) Notwithstanding the requirements of this Section, the commissioner23
may retain from time to time, on an individual basis, qualified actuaries,24
certified public accountants, or other similar individuals who are independently25
practicing their professions, even though said persons may from time to time be26
similarly employed or retained by persons subject to examination under this27
Subpart.28
L.(1) No cause of action shall arise nor shall any liability be imposed29
against the commissioner, the authorized representatives of the commissioner,30 SB NO. 607 ENROLLED
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or any examiner appointed by the commissioner, for any statements made or1
conduct performed in good faith while carrying out the provisions of this2
Subpart.3
(2) No cause of action shall arise, nor shall any liability be imposed,4
against any person for the act of communicating or delivering information or5
data to the commissioner, or the authorized representative of the commissioner,6
or examiner, pursuant to an examination made under this Subpart, if such act7
of communication or delivery was performed in good faith and without8
fraudulent intent or the intent to deceive.9
M.(1) In addition to those examinations performed by the commissioner10
of insurance pursuant to R.S. 23:1200.6, the commissioner of insurance shall11
conduct financial reviews of all group self-insurance funds authorized to do12
business in this state. Such reviews shall include the audited financial statements13
of the group self-insurance fund rendered pursuant to good and acceptable14
accounting practices, results of prior examinations and office reviews,15
management changes, consumer complaints, and such other relevant16
information as from time to time may be required by the commissioner.17
(2) Failure by a group self-insurance fund to supply information18
requested by the Department of Insurance during the course of a financial19
review shall subject the group self-insurance fund to revocation or suspension20
of its license or, in lieu thereof, a fine not to exceed ten thousand dollars per21
occurrence.22
(3) All work papers, recorded information, documents and copies23
thereof produced by, obtained by, or disclosed to the commissioner, or any24
other person in the course of conducting a financial review shall be given25
confidential treatment and are not subject to subpoena and may not be made26
public by the commissioner or any other person, except that any access may be27
granted to insurance departments of other states, international, federal or state28
law enforcement agencies or international, federal or state regulatory agencies29
with statutory oversight over the financial services industry, if the recipient30 SB NO. 607 ENROLLED
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agrees to maintain the confidentiality of those documents which are confidential1
under the laws of this state.2
(4) In conducting financial reviews, the examiner or examiners shall3
observe those guidelines and procedures as the commissioner may deem4
appropriate.5
(5) Nothing contained in this Part shall be construed to limit the6
commissioner's authority to use any final or preliminary analysis findings, any7
Department of Insurance or fund work papers or other documents, or any8
other information discovered or developed during the course of any analysis in9
the furtherance of any legal or regulatory action which the commissioner may,10
in his sole discretion, deem appropriate.11
(6) Any group self-insurance fund against whom a fine has been levied12
shall be given ten days notice of such action. Upon receipt of this notice, this13
aggrieved party may apply for and shall be entitled to a hearing pursuant to this14
Subpart.15
N. Nothing in this Section shall prohibit the legislative auditor from16
reviewing records and conducting an audit in accordance with R.S. 24:513.17
§1200.8. Review and examination expense; how paid18
A. Whenever the commissioner of insurance makes an examination or19
investigation pursuant to this Subpart, all expenses incurred by the20
commissioner of insurance in conducting such examination or investigation,21
including the expenses and fees of examiners, auditors, accountants, actuaries,22
attorneys, or clerical or other assistants who are employed by the commissioner23
of insurance to make the examination, shall be paid by the group self-insurance24
fund.25
B. The commissioner of insurance may recover all expenses incurred26
from the examination or investigation of any person or entity acting as an27
administrator or third-party administrator in this state for any group self-28
insurance fund not authorized to transact business in this state.29
§1200.9. Authority to employ examiners and other assistants30 SB NO. 607 ENROLLED
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A. The commissioner of insurance shall employ such examiners,1
auditors, accountants, actuaries, attorneys, and clerical or other assistants as2
are necessary to conduct the examination and to compile and prepare a report3
thereon, and the compensation for such examination shall be fixed according to4
the time actually devoted to the work of conducting the examination and5
compiling the report thereon as now required by law. Such compensation shall6
always be reasonable and commensurate with the value of the services7
performed.8
B. Upon completion of the examination of any group self-insurance fund9
or at stated periods during such examinations, the commissioner of insurance10
shall forward to the group self-insurance fund a statement showing the amount11
of expenses incurred in such examination to the date of such statement.12
Whereupon, the group self-insurance fund shall pay the amount so shown to the13
commissioner of insurance. Upon receipt of such payment the commissioner of14
insurance shall deposit same in an account styled "commissioner of insurance,15
revolving fund account", and withdrawals from said account shall be made by16
the commissioner of insurance for the purpose of payment to examiners,17
auditors, accountants, actuaries, attorneys, and clerical or other assistants of18
their salaries and necessary expenses incurred in the conduction of such19
examination.20
§1200.10. Group self-insurance fund's right to contest expense21
If the group self-insurance fund deems the amount of expenses billed to22
it unreasonable or contrary to the provisions of this Subpart, it may within23
fifteen days after the receipt of such billing, file a rule in a court of competent24
jurisdiction upon the commissioner of insurance to test the reasonableness and25
legality under this Subpart of the amount of expenses billed to it by the26
commissioner of insurance which rule shall be tried by preference, and upon27
appeal, shall be given preference in the appellate court, as provided by the laws28
of this state for other state cases.29
§1200.11. Failure to pay expenses; penalty30 SB NO. 607 ENROLLED
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If any group self-insurance fund fails or refuses to pay the expenses of1
examination as billed by the commissioner of insurance after fifteen days upon2
receipt of such billing or after final judgment where a rule has been filed as3
provided in this Part, then the commissioner of insurance may revoke the4
certificate of authority of such group self-insurance fund to do business in this5
state until the full amount of the bill is paid.6
§1200.12. Scope of examination7
In conducting such an examination, the commissioner of insurance shall8
examine the affairs, transactions, accounts, records, documents and assets of9
each authorized group self-insurance fund. For the purpose of ascertaining its10
condition or compliance with this Subpart, the commissioner of insurance may11
as often as he deems advisable, examine the accounts, records, documents and12
transactions of (a) any insurance agent, solicitor or broker, but only insofar as13
such accounts, records, documents and transactions relate to group self-14
insurance funds, or of (b) any person having a contract under which he enjoys,15
in fact, the exclusive or dominant right to manage or control a group self-16
insurance fund.17
§1200.13. Production of books and records18
Every group self-insurance fund being examined, its officers, trustees,19
employees, administrators and representatives, shall produce and make freely20
accessible to the commissioner of insurance the accounts, records, documents21
and files in its possession or control relating to the subject of the examination,22
and shall otherwise facilitate the examination.23
§1200.14. Power to examine under oath; subpoena witnesses24
The commissioner of insurance may take depositions, subpoena witnesses25
or documentary evidence, administer oaths and examine under oath any26
individual relative to the affairs of any group self-insurance fund being27
examined. Any person who testifies falsely or makes any false affidavit during28
the course of such an examination shall be guilty of perjury.29
§1200.15. Commissioner of insurance authorized to employ investigators30 SB NO. 607 ENROLLED
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The commissioner of insurance shall have authority to employ1
investigators to investigate complaints received against group self-insurance2
funds authorized to do business in this state and against any unauthorized3
group self-insurance funds who are reported to be operating in this state.4
§1200.16. Disclosure5
A. It shall be unlawful for any person who is an officer, trustee,6
employee, administrator, agent, or representative of a group self-insurance7
fund; or any person, partnership, corporation, banking corporation, or any8
other legal entity which performs any service for a group self-insurance fund,9
or prepares any report, audit, financial statement or report for, or makes any10
representation on behalf of, for, or with regard to a group self-insurance fund,11
in connection with any hearing, investigation, or examination authorized by this12
Subpart, to act with the specific intent to do any of the following items:13
(1) Represent falsely, directly or indirectly, to the Department of14
Insurance or any employee, trustee or administrator thereof, that an asset of15
such group self-insurance fund is unencumbered, or to misrepresent any other16
material fact pertaining to the status of any asset or liability of a group self-17
insurance fund.18
(2) Materially misrepresent to the Department of Insurance, or any19
employee, trustee or administrator thereof, the value of any asset or the amount20
of any liability of such group self-insurance fund, or any affiliate, subsidiary, or21
holding fund associated therewith; provided that with regard to a material22
misrepresentation of the value of any asset or liability, any deviation from the23
actual value of such asset or liability which results from utilization of and24
compliance with generally accepted insurance accounting and reporting25
procedures shall not be deemed a violation of this Section.26
(3) Fail to disclose to the Department of Insurance the existence of any27
liability of a group self-insurance fund, or affiliate, subsidiary, or holding28
company associated therewith when such disclosure is properly requested or29
required in writing by an examiner or administrator of the Department of30 SB NO. 607 ENROLLED
Page 17 of 18
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words in boldface type and underscored are additions.
Insurance.1
(4) Materially misrepresent, withhold, deny access to, or otherwise2
preclude the obtainment of any information properly requested in writing and3
in accordance with provisions of law affecting dissemination or disclosure of4
information by specific institutions by an examiner or administrator of the5
Department of Insurance, which is material and relevant to an examination6
properly conducted by the Department of Insurance and examiners and7
administrators of the Department of Insurance.8
B. Whoever violates any provision of this Section, upon conviction, shall9
be fined not more than fifty thousand dollars, or imprisoned with or without10
hard labor for not more than five years, or both.11
§1200.17. Departmental complaint directives; failure to comply; fines; hearing12
A. Any person subject to the regulatory authority of this department13
who fails to comply with any directive issued by the commissioner in connection14
with a consumer complaint shall be fined an amount not to exceed two hundred15
fifty dollars for each occurrence.16
B. Any person against whom a fine has been levied shall be given ten17
days notice of such action. Upon receipt of this notice, the person aggrieved may18
apply for and shall be entitled to a hearing conducted in accordance with the19
provisions of this Subpart.20
Section 3. R.S. 44:4.1(B)(11) is hereby amended and reenacted to read as follows:21
§4.1. Exceptions22
* * *23
B. The legislature further recognizes that there exist exceptions,24
exemptions, and limitations to the laws pertaining to public records25
throughout the revised statutes and codes of this state. Therefore, the26
following exceptions, exemptions, and limitations are hereby continued in27
effect by incorporation into this Chapter by citation:28
* * *29
(11) R.S. 23:1177, 1197, 1200.7, 1291, 1292, 1293, 1306, 1660, 167130 SB NO. 607 ENROLLED
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words in boldface type and underscored are additions.
* * *1
Section 4.. R.S. 22:461(J) and 1982 are hereby repealed.2
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: