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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 ENROLLED
SENATE BILL NO. 676
BY SENATOR HEBERT
AN ACT1
To amend and reenact R.S. 22:1984 and R.S. 44:4.1(B)(10), relative to examination and2
investigation of insurers and regulated entities; to provide for financial and market analysis3
of insurers and regulated entities; to provide for penalties; to provide for confidentiality; to4
provide for standards and procedures; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 22:1984 is hereby amended and reenacted to read as follows: 7
§1984. Commissioner of insurance to conduct annual office review financial and8
market analysis of insurers and regulated entities9
A. In addition to those examinations performed by the commissioner of10
insurance pursuant to R.S. 22:1981, the commissioner of insurance shall conduct an11
annual office financial and market analysis review of all insurers authorized to do12
business in this state, other than life, health, and accident insurers and nonprofit13
funeral associations and may conduct regulatory reviews of entities regulated by14
Title 22 of the Louisiana Revised Statutes of 1950, or the Department of15
Insurance except for trusts established and operated under R.S. 22:46(9)(b),(c),16
or (d). Such office reviews shall may include the annual statement and the market17
conduct annual statement of the insurer or regulated entity reviewed, company18
financial reports rendered pursuant to good and acceptable accounting practices,19
results of insurance solvency standards testing as performed by the National20
Association of Insurance Commissioners, results of prior examinations and office21
reviews, management changes, consumer complaints, and such other relevant22
information as from time to time may be required by the commissioner.23
B. In lieu of conducting a financial or market analysis under this Section24
of any foreign or alien insurer licensed in this state, the commissioner may rely25
ACT No. 968 SB NO. 676 ENROLLED
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upon the financial or market analysis conducted by the insurance department1
for the company's state of domicile or port-of-entry state accredited under the2
National Association of Insurance Commissioners' Financial Regulation3
Standards and Accreditation Program. The commissioner shall timely furnish to4
each reviewed insurer a written report detailing the findings of each such annual5
review. Within forty-five days of its receipt of such written report, each reviewed6
insurer shall provide to the commissioner such response, rebuttal, explanation, or7
other information as it may see fit. The commissioner shall furnish to any person,8
upon request, a copy of the written report, accompanied by a copy of the response,9
rebuttal, explanation, or other information provided by the reviewed insurer.10
C. Failure by an insurer or regulated entity to supply information11
requested by the Department of Insurance during the course of financial or12
market analysis may subject the insurer or regulated entity to revocation or13
suspension of its license, or, in lieu thereof, a fine not to exceed ten thousand14
dollars per occurrence. Every insurer or regulated entity shall produce and15
make freely accessible to the commissioner of insurance the accounts, records,16
documents, and files in its possession or control.17
D. All work papers, recorded information, documents, and copies18
thereof produced by, obtained by, or disclosed to the commissioner, or any19
other person in the course of conducting a regulatory review, financial, or20
market analysis, including market conduct annual statement information,21
performed under this Section, as well as the review and analysis of such22
information, shall be given confidential treatment and are not subject to23
subpoena or to discovery and may not be made public by the commissioner or24
any other person, except that access may be granted to the National Association25
of Insurance Commissioners, insurance department of other states,26
international, federal, or state law enforcement agencies or international,27
federal, or state regulatory agencies with statutory oversight over the financial28
services industry, if the recipient agrees to maintain the confidentiality of those29
documents which are confidential under the laws of this state. Any documents,30 SB NO. 676 ENROLLED
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materials, or other information which are disclosed by the commissioner to a1
third party shall not be admissible in evidence in a private civil action and shall2
be exempt from any applicable freedom of information law, public records law,3
or similar statute. No person or entity which receives or has access to4
documents, materials, or other information under this Section shall be5
permitted or required to testify in a private civil action concerning such6
documents, materials, or other information. No waiver of an applicable7
privilege or a claim of confidentiality in the documents, materials, or other8
information shall occur as a result of disclosure to the commissioner or to any9
other person granted access under this Section as a result of sharing such10
documents, materials, or other information as provided in this Section. Nothing11
in this Section shall require an insurer to disclose documents, materials, or12
other information to a third party that is not otherwise required by law to be13
disclosed.14
E. In conducting financial or market analysis, the examiner or15
examiners shall observe those guidelines and procedures set forth in the16
Financial Analysis Handbook or Market Regulation Handbook adopted by the17
National Association of Insurance Commissioners. The commissioner may also18
employ such other guidelines or procedures as the commissioner may deem19
appropriate.20
F. Nothing contained in this Chapter shall be construed to limit the21
commissioner's authority to use any final or preliminary analysis findings, any22
Department of Insurance or company work papers or other documents, or any23
other information discovered or developed during the course of any analysis in24
the furtherance of any legal or regulatory action which the commissioner may,25
in his sole discretion, deem appropriate.26
G. Any insurer or regulated entity against whom a fine has been levied27
shall be given thirty days notice of such action. Upon receipt of this notice, the28
aggrieved insurer or regulated entity may apply for and shall be entitled to a29
hearing pursuant to R.S. 22:2191, et seq.30 SB NO. 676 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Section 2. R.S. 44:4.1(B)(10) is hereby amended and reenacted to read as follows:1
§4.1. Exceptions2
* * *3
B. The legislature further recognizes that there exist exceptions, exemptions,4
and limitations to the laws pertaining to public records throughout the revised5
statutes and codes of this state. Therefore, the following exceptions, exemptions, and6
limitations are hereby continued in effect by incorporation into this Chapter by7
citation:8
* * *9
(10) R.S. 22:2, 14, 42.1, 88, 244, 461, 572, 574, 628 618, 706, 732, 752,10
1203, 1460, 1466, 1546, 1644, 1656, 1723, 1929, 1983, 1984, 2036, 230311
* * *12
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: