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Regular Session, 2013 ENROLLED
SENATE BILL NO. 180
BY SENATORS ERDEY AND LAFLEUR
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To amend and reenact R.S. 22:3, 1921, 1922, 1926, 1927, 1928(A)(introductory paragraph),2
and 1929(A), and R.S. 36:681(C)(1), to enact R.S. 36:691.1, and to repeal R.S.3
36:691, relative to the Department of Insurance; to provide with respect to the4
division of insurance fraud; to provide for powers and duties of the division of5
insurance fraud; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 22:3, 1921, 1922, 1926, 1927, 1928(A)(introductory paragraph), and8
1929(A) are hereby amended and reenacted to read as follows:9
§3. Composition of Department of Insurance10
The Department of Insurance shall be comprised of the office of the11
commissioner, the office of management and finance, the office of property and12
casualty, the office of receivership, the office of licensing and compliance, the office13
of financial solvency, the office of consumer advocacy, the office of health14
insurance, the division of insurance fraud, the division of legal services, the15
division of public affairs, the division of minority affairs, and any other office or16
division that may be included by the Executive Reorganization Act or other law.17
Each office or division shall be administered as prescribed by Titles 36 and 39 of the18
Louisiana Revised Statutes of 1950.19
* * *20
§1921. Purpose and powers21
A. The purpose of this Part is to create within the Department of Insurance22
a section division of insurance fraud. This section division shall be charged with the23
responsibility, when requested directed by the commissioner of insurance, to24
ACT No. 217 SB NO. 180 ENROLLED
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conduct investigations and background criminal checks on all applicants each1
applicant for a license or certificate of authority to transact a business of insurance.2
The division of insurance fraud shall be governed by the provisions of this Part3
including the powers and duties relating to the investigation and prevention of4
administrative or civil violations of the insurance laws of this state.5
B. In the event the applicant is a corporation, partnership, or other legal6
entity, the criminal background and checks shall be limited to those individuals who7
are directors, officers, employees, or individuals who own or control at least ten8
percent of the entity.9
C. If the section division has reason to believe, whether acting on its own10
initiative or as a result of complaints, that a person has engaged in, or is engaging in,11
an act or practice that violates this Part or any other provision of this Code, it may12
examine and investigate into the affairs of such person and may administer oaths and13
affirmations, serve subpoenas ordering the attendance of witnesses, and collect14
evidence.15
D. If during the course of investigation, the Department of Insurance16
division of insurance fraud determines that there may be a violation of any criminal17
law, the investigation the division shall then be turned turn the matter over to the18
Department of Justice,; the Department of Public Safety and Corrections, public19
safety services,; office of state police,; and any other appropriate law enforcement20
or prosecutorial agency, for further investigation, enforcement, or prosecution.21
§1922. Additional powers and duties22
A. The Department of Insurance, section division of insurance fraud, is23
authorized to have access to computer systems, information maintained for the24
use of law enforcement personnel, any information contained in the criminal25
history record and identification file of the Louisiana Bureau of Criminal26
Identification and Information, is authorized to have and direct and timely access27
to information compiled by the Federal Bureau of Investigation, as contained in the28
National Crime Identification Information Center, for the purposes of licensure or29
the granting, denying, revocation, suspension or any other action on an application30 SB NO. 180 ENROLLED
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for a license or certificate of authority to be an insurer in the state, subject to the1
approval of the office of state police carrying out its responsibilities under this2
Part.3
B. The Department of Insurance, section of insurance fraud, commissioner4
of insurance is authorized to may require all applicants each applicant for a license5
or certificate of authority to submit physical evidence of the identity of the applicant.6
The commissioner of insurance is authorized to may promulgate rules and7
regulations defining the type of physical identification acceptable and the manner in8
which such evidence is to be received by the Department of Insurance.9
C. The commissioner of insurance may deny a license or certificate of10
authority when the applicant, or if the applicant is a corporation, partnership, limited11
liability company or partnership, or other legal entity, any officer, director, managing12
person, employee, or principal stockholder has been convicted of a felony.13
D. The commissioner of insurance may issue a commission authorizing14
the deputy commissioner of insurance fraud or any compliance investigator who15
is certified by the Council on Peace Officer Standards and Training (P.O.S.T.),16
or who may be qualified by the P.O.S.T. Council, to carry and use firearms in17
performance of their duties in investigating suspected administrative or civil18
insurance fraud. These powers and privileges shall not include arrest powers.19
The commissioner shall also provide appropriate credentials and badges of20
authority.21
* * *22
§1926. Duties of companies and others23
A. Any person, company, or other legal entity including but not limited to24
those engaged in the business of insurance, including producers and adjusters, which25
that suspects that a fraudulent insurance act will be, is being, or has been committed26
shall, within sixty days of the receipt of such notice, send to the section division of27
insurance fraud, on a form prescribed by the section commissioner, the information28
requested and such additional information relative to the insurance act and the parties29
claiming loss or damages because of an occurrence or accident as the section30 SB NO. 180 ENROLLED
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commissioner may require. The section division of insurance fraud shall review1
such reports and select such insurance acts as, in its judgment, may require further2
investigation. It shall then cause an independent examination of the facts surrounding3
such insurance act to be made to determine the extent, if any, to which fraud, deceit,4
or intentional misrepresentation of any kind exists in the submission of the insurance5
act.6
B. The section division of insurance fraud shall report any alleged violations7
of law which its investigations disclose to the appropriate licensing agency, the8
insurance fraud investigation unit of the office of state police, the insurance fraud9
support unit of the Department of Justice, and the prosecutive authority having10
jurisdiction with respect to any such violation. These units shall work jointly on11
criminal referrals.12
§1927. Materials and evidence13
A. If matter that the section division seeks to obtain by request is located14
outside the state, the person so requested may make it available to the section15
division or its representative to examine at the place where it is located. The section16
division may designate representatives, including officials of the state in which the17
matter is located, to inspect the matter on its behalf, and it may respond to similar18
requests from officials of other states.19
B. The section's division's papers, documents, reports, or evidence relative20
to the subject of an investigation under this Part shall not be subject to public21
inspection for so long as the section commissioner deems reasonably necessary to22
complete the investigation, to protect the person investigated from unwarranted23
injury, or to be in the public domain. Further, such papers, documents, reports, or24
evidence relative to the subject of investigation under this Section shall not be25
subject to subpoena until opened for public inspection by the section commissioner,26
unless the section commissioner consents, or until after notice to the section27
commissioner and a hearing, a court of competent jurisdiction determines the28
section division would not be necessarily hindered by such subpoena. Section29
investigators Division personnel shall not be subject to subpoena in civil actions by30 SB NO. 180 ENROLLED
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any court of this state to testify concerning any matter of which they have knowledge1
pursuant to a pending insurance fraud investigation by the section.2
§1928. Civil immunity3
A. No insurer, employees, or agents of any insurer, or any other person acting4
without malice, fraudulent intent, or bad faith, shall be subject to civil liability for5
libel, slander, or any other relevant tort, and no civil cause of action of any nature6
shall exist against such person or entity by virtue of the filing of reports or furnishing7
other information, either orally or in writing, concerning suspected, anticipated, or8
completed fraudulent insurance acts when such reports or information are required9
by this Part or required by the section division of insurance fraud as a result of the10
authority herein granted or when such reports or information are provided to or11
received from:12
* * *13
§1929. Confidentiality of criminal background checks, civil penalties14
A. Notwithstanding any other provision of law to the contrary, criminal15
background information in the possession of the fraud section division of insurance16
fraud of the Department of Insurance shall be confidential and shall not be disclosed17
to others outside of the fraud section division of insurance fraud except as18
necessary for action on the application of the applicant.19
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Section 2. R.S. 36:681(C)(1) is hereby amended and reenacted and R.S. 36:691.1 is21
hereby enacted to read as follows:22
§681. Department of Insurance; creation; domicile; purposes and functions23
* * *24
C.(1) The officers of the department shall be the commissioner of insurance,25
the chief deputy commissioner, the deputy commissioner for management and26
finance, the deputy commissioner for property and casualty, the deputy27
commissioner for receivership insurance fraud, the deputy commissioner for28
licensing and compliance, the deputy commissioner for financial solvency, the29
deputy commissioner for health insurance, the deputy commissioner for public30 SB NO. 180 ENROLLED
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affairs, the deputy commissioner for minority affairs, the deputy commissioner for1
consumer advocacy, and the executive counsel.2
* * *3
§691.1. Division of insurance fraud4
There is hereby created a division of insurance fraud in the Department5
of Insurance that shall be under the direction of the deputy commissioner for6
insurance fraud. The duties and functions of the division of insurance fraud7
and the deputy commissioner of insurance fraud shall be the investigation of8
alleged administrative or civil fraudulent insurance acts, other administrative9
or civil violations of the insurance laws of this state and executive security as10
assigned by the commissioner.11
Section 3. R.S. 36:691 is hereby repealed.12
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: