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words in boldface type and underscored are additions.
Regular Session, 2010 ENROLLED
SENATE BILL NO. 675
BY SENATOR HEBERT
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
certified copy of the original. Any original so reproduced may thereafter be disposed18
of or destroyed, as provided for in Subsection B of this Section, if provision is made19
for preserving and examining such reproductions.20
B. All such original books, records, documents, accounts, and vouchers, or21
such reproductions thereof, of the home office of any domestic company or of any22
principal United States office of a foreign or alien company located in this state shall23
be preserved and kept available in this state for the purpose of examination and until24
authority to destroy or otherwise dispose of such records is secured from the25
commissioner. At a minimum all such original records shall be maintained for the26
period commencing on the first day following the last period examined by the27
ACT No. 212 SB NO. 675 ENROLLED
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commissioner through the subsequent examination period, or three five years,1
whichever is greater. Such original records may, however, be kept and maintained2
outside this state if, according to a plan adopted by the company's board of directors3
and approved by the commissioner, it maintains suitable records in lieu thereof.4
C. Every domestic company shall keep its securities within the state of5
Louisiana except where:6
(1) On deposit with other states of the United States of America or political7
subdivisions thereof.8
(2) On deposit with foreign countries where the company is licensed to9
transact an insurance business.10
(3) Required for the normal transaction of the company's business and11
approved by the commissioner.12
D. Any domestic company may maintain for its securities a limited agency,13
custodial or depository account, or other type of account for the safekeeping of those14
securities; collecting the income from those securities; and providing supportive15
accounting services relating to such safekeeping and collection; all provided the16
domestic company maintains full investment discretion over those securities. Such17
account shall be with either (1) a bank, qualified under state law to administer trusts18
in this state, and operating as described in R.S. 6:534(B); or (2) a member of the19
National Association of Securities Dealers, subject to the jurisdiction of the20
Securities and Exchange Commission, maintaining membership in the Securities21
Investors Protection Corporation, and having an agency office in this state. The bank22
or the National Association of Securities Dealers member, in safekeeping such23
securities, shall have all the powers, rights, duties, and responsibilities as it has under24
state law for holding securities in its fiduciary accounts. The commissioner of25
insurance is hereby authorized to promulgate rules and regulations pursuant to this26
Subsection.27
E D. Any director, officer, agent, or employee of any company who destroys28
any such books, records, or documents without the authority of the commissioner in29
violation of this Section or who fails to keep the books, records, documents,30 SB NO. 675 ENROLLED
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accounts, and vouchers required by this Section shall be fined not more than five1
thousand dollars.2
F. The commissioner of insurance may require that any domestic or3
redomesticated insurer maintaining its books, records, documents, accounts, and4
vouchers outside of this state pursuant to this Section shall, upon notice of a pending5
examination by the commissioner, deposit with the Department of Insurance such6
funds as the commissioner shall estimate as necessary for the conduct of the7
examination, including all expenses as set forth in R.S. 22:1985. The funds so8
deposited shall be maintained by the commissioner in a separate account for the9
purpose of paying such expenses during the progress of the examination as he may10
deem appropriate. The commissioner may require additional deposits where the11
expenses exceed the original estimate.12
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: