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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. 677
BY SENATOR HEBERT
AN ACT1
To amend and reenact R.S. 22:598(11), 692(3), and 703(K), relative to financial solvency2
and reporting requirements; to provide for investments of domestic insurers; to3
provide for investments in electronic data processing equipment; to provide4
definitions; to provide for a disclaimer of affiliation; and to provide for related5
matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 22:598(11), 692(3), and 703(K) are hereby amended and reenacted8
to read as follows: 9
§598. Admitted assets10
For the purposes of this Subpart, the following assets, if owned by a domestic11
insurer, shall be known as admitted assets:12
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(11) Electronic and mechanical machines constituting a data processing14
equipment as defined by the NAIC Accounting Practices and Procedures15
Manual and accounting system, if the cost of such system is at least ten thousand16
dollars, which costs shall be amortized in full over a period not to exceed ten17
calendar years. The book value of the apparatus and equipment shall not exceed two18
percent of the admitted assets of the insurer.19
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ACT No. 339 SB NO. 677 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
§692. Definitions1
As used in this Subpart, the following terms shall have the respective2
meanings hereinafter set forth, unless the context shall otherwise require:3
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(3) "Control" means the possession, direct or indirect, of the power to direct5
or cause the direction of the management and policies of a person, whether through6
the ownership of voting securities, by contract other than a commercial contract for7
goods or nonmanagement services, or otherwise, unless the power is the result of an8
official position with or corporate office held by the person. Control shall be9
presumed to exist if any person, directly or indirectly, owns, controls, holds with the10
power to vote, or holds proxies representing ten percent or more of the voting11
securities of any other person. This presumption may be rebutted by a showing made12
in the manner provided by R.S. 22:703(K) that control does not exist in fact. The13
commissioner may determine, after furnishing all persons in interest notice and14
opportunity to be heard and making specific findings of fact to support such15
determination, that control exists in fact, notwithstanding the absence of a16
presumption to that effect.17
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§703. Registration of insurers19
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K. Disclaimer. Any person may file with the commissioner a disclaimer of21
affiliation with any authorized insurer, or such a disclaimer may be filed by such22
insurer or any member of an insurance holding company system. The disclaimer23
shall fully disclose all material relationships and bases for affiliation between such24
person and such insurer as well as the basis for disclaiming such affiliation. After a25
disclaimer has been filed, the insurer shall be relieved of any duty to register or26
report under this Section which may arise out of the insurer's relationship with such27
person unless and until the commissioner disallows such a disclaimer. The person28
filing such a disclaimer shall notify the commissioner of any material change to29
the affiliations and relationships as reported in the disclaimer within thirty days30 SB NO. 677 ENROLLED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
of the effective date of the change. The commissioner shall disallow such a1
disclaimer only after furnishing all parties in interest with notice and opportunity to2
be heard and after making specific findings of fact to support such disallowance.3
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PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: