SLS 12RS-672 REENGROSSED
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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, 2012
SENATE BILL NO. 232
BY SENATOR BROOME
INSURANCE COMMISSIONER. Permits the commissioner of insurance to issue cease and
desist orders for Insurance Code violations. (8/1/12)
AN ACT1
To amend and reenact R.S. 22:18(A), relative to the suspension or revocation of insurers'2
licenses; to provide for the issuance of cease and desist orders by the commissioner;3
and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 22:18(A) is hereby amended and reenacted to read as follows:6
ยง18. Suspension or revocation of insurers' licenses; fines; orders7
A. The commissioner of insurance may, as a penalty, in accordance with8
R.S. 49:961, refuse to renew, or may suspend, or revoke the certificate of authority9
or license of any insurer, person, or entity violating any of the provisions of this10
Title Code, or in lieu of suspension or revocation of a certificate or license duly11
issued, the commissioner may levy a fine not to exceed one thousand dollars for each12
violation per insurer, person, or entity, up to one hundred thousand dollars13
aggregate for all violations in a calendar year per insurer, person, or entity, when14
such violations warrant the refusal, suspension, or revocation of such certificate or15
license, or the imposition of the fine. The commissioner is also authorized to16
order any insurer, person, or entity to cease and desist any such action that17 SB NO. 232
SLS 12RS-672 REENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
violates any provision of this Code. An aggrieved party affected by the1
commissioner's decision, act, or order may demand a hearing in accordance with2
Chapter 12 of this Title, R.S. 22:2191 et seq. If the insurer has demanded a timely3
hearing, the penalty or fine ordered by the commissioner shall not be imposed until4
such time as the division of administrative law makes a finding that the penalty or5
fine is warranted in a proper hearing, held in the manner provided in Chapter 12 of6
this Title.7
* * *8
The original instrument was prepared by Cheryl Horne. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Sherri H. Breaux.
DIGEST
Broome (SB 232)
Present law permits the commissioner to refuse to renew, to suspend, or to revoke the
certificate of authority of any insurer violating any of the provisions of the Insurance Code.
Further permits the commissioner to levy a fine not to exceed $1,000 for each violation per
insurer, up to $100,000 aggregate for all violations in a calendar year per insurer.
Proposed law retains present law and specifies that the commissioner may refuse to renew,
suspend, or revoke the certificate of authority or license of any person or entity, or may fine
any person or entity for violations of the Code. Further authorizes the commissioner to order
any insurer, person, or entity to cease and desist any action that violates any provision of the
Code.
Effective August 1, 2012.
(Amends R.S. 22:18(A))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Insurance to the original
bill.
1. Extends the commissioner's ability to suspend or revoke a certificate of
authority or license to include any person or entity.
2. Authorizes the commissioner to order any insurer, person, or entity to cease
and desist any action that violates any provision of the Insurance Code.
Senate Floor Amendments to engrossed bill
1. Makes technical correction.