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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Burrell HB No. 524
Abstract: Adds categories of special groups to the enumerated list of special groups which
may be covered by blanket health and accident insurance.
(1)Present law authorizes any health and accident insurer in the state to issue policies
described in present law.
Proposed law clarifies that those insurers can issue those policies if such policies do
not conflict with state or federal law.
(2)Present law recognizes group health and accident insurance as a policy of health and
accident insurance which covers more than one person, with certain exceptions.
(3)Present law recognizes blanket health and accident insurance as a type of group
health and accident insurance that covers special groups of persons. Present law
further lists these special groups.
Proposed law retains present law and adds to the list of special groups with respect
to blanket health and accident insurance.
(4)Present law lists common carriers as a special group.
Proposed law retains present law and clarifies that the special group of "common
carriers" includes any operator, owner, or lessee of a means of transportation that
operates as a common carrier.
(5)Present law lists employers as a special group, and states that the policy of insurance
shall cover employees defined by reference to exceptional hazards incident to
employment.
Proposed law alters present law to include coverage for dependents or guests of an
employer, as defined by reference to hazards incident to any activities or operations
of the employer-policyholder.
(6)Present law lists colleges, schools, and other institutions of learning as a special
group, stating that the head or principal of such institution of learning is the
policyholder. Present law states that coverage may extend to students and teachers.
Proposed law retains present law and adds school districts and school jurisdiction
units to the type of institutions of learning which may be recognized as a special
group; further includes a governing board of such institution as a potential
policyholder. Proposed law further extends coverage to employees and volunteers
of such institutions.
(7)Present law lists volunteer fire departments, first aid groups, and other such groups
as a special group. Present law states that coverage extends to all members of such
fire departments and first aid groups.
Proposed law retains present law and adds governmental fire departments, as well as
civil defense groups. Proposed law further extends coverage to "participants" and
"volunteers" of such departments and first aid or civil defense group, incident to
sponsored or supervised activities. Page 2 of 3
(8)Proposed law adds sports teams, camps, and their sponsors to the list of special
groups, with coverage extended to members, campers, employees, officials,
supervisors, and volunteers.
(9)Proposed law adds religious, charitable, recreational, educational, and civic
organizations to the list of special groups, with coverage extended to members
participants, and volunteers.
(10)Proposed law adds newspapers and their publishers to the list of special groups, with
coverage extended to carriers of such newspapers.
(11)Proposed law adds restaurants, hotels, motels, resorts, innkeepers, and establishments
with a high degree of customer liability to the list of special groups, with coverage
extended to patrons, guests, and volunteers.
(12)Proposed law adds health maintenance organizations, health care providers and other
arrangers of health services, with coverage extended to subscribers, patients, donors,
and surrogates. Proposed law stipulates that such coverage shall not be made a
condition precedent to such individuals receipt of care. Proposed law further
stipulates that major medical health and accident coverage may not be provided to
subscribers or other enrollees.
(13)Proposed law adds banks and other financial associations or institutions to the list of
special groups, with coverage extended to account holders, credit card holders,
debtors, guarantors, and purchasers.
(14)Proposed law adds incorporated and unincorporated associations of persons who
have a common interest other than the purpose of obtaining insurance to the list of
special groups. Coverage extends to members and participants of such associations.
(15)Proposed law adds travel agencies and organizations that provide travel related
services to the list of special groups, with coverage extended to all persons for which
travel related services are provided.
(16)Present law lists "substantially similar groups" as a special group which, subject to
the discretion of the commissioner of insurance.
Proposed law changes "substantially similar group" to "risk or class of risks" and
authorizes the commissioner to exercise his discretion on an individual risk basis or
as a class of risks, or both.
(17)Present law lists policies issued to the Department of Health and Hospitals as a
special group.
Proposed law retains present law.
(18)Present law states that an individual application shall not be required of a person
covered by such a group blanket policy.
Proposed law retains present law.
(Amends R.S. 22:1000(A)(intro.para.), 3 (intro.para.), (a), (b), (c), (d), (f), (g), and (h); Adds
R.S. 22:1000(A)(3)(i)-(o) and (4))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Insurance to the original
bill.
1. Clarified that no policy issued pursuant to the provisions of proposed law shall
conflict with other provisions of Title 22 of the Louisiana Revised Statutes of
1950 or with other provisions of federal law. Page 3 of 3
2. With respect to policies or contracts issued to health maintenance organization,
clarified that major medical health and accident coverage may not be provided
to subscribers or other enrollees pursuant to proposed law.
House Floor Amendments to the engrossed bill.
1. Makes technical changes.