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Regular Session, 2014
HOUSE BILL NO. 647
BY REPRESENTATIVE HUNTER
INSURERS: Provides relative to vehicle mechanical breakdown insurers
AN ACT1
To amend and reenact R.S. 22:369(A)(introductory paragraph) and to enact R.S. 22:362(C),2
369(A)(5), and 369.1, relative to vehicle mechanical breakdown insurers; to permit3
the commissioner of insurance to levy a fine; to provide that mechanical breakdown4
insurers shall notify the commissioner of insurance within sixty days of any material5
change in its ownership, control, or other circumstance affecting its qualifications for6
a license; to provide that the commissioner may levy a fine, suspend, or revoke a7
license for failing to comply with the law or a lawful order of the commissioner; to8
provide for reinstatement of license for failure to pay the annual license renewal fee;9
to provide for reinstatement of license for failure to file the annual audited financial10
statement; and to provide for related matters.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S. 22:369(A)(introductory paragraph) is hereby amended and reenacted13
and R.S. 22:362(C), 369(A)(5), and 369.1 are hereby enacted to read as follows: 14
§362. License required of vehicle mechanical breakdown insurer15
* * *16
C. Every licensee shall notify the commissioner within sixty days of any17
material change in its ownership, control, or other fact or circumstance affecting its18
qualification for a license in this state. Material changes shall include but are not19
limited to the following:20 HLS 14RS-1302 ENGROSSED
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(1) Changes in officers or directors.1
(2) Changes in ownership.2
(3) Change in articles of incorporation.3
(4) A merger.4
(5) An addition or change of a trade name or "d/b/a".5
(6) Cessation of business in Louisiana.6
* * *7
§369. Revocation or suspension of license8
A. In accordance and compliance with R.S. 49:961, the commissioner may9
levy a fine not to exceed one thousand dollars per violation or revoke or suspend any10
license required by this Subpart should he find any of the following:11
* * *12
(5) If the insurer fails to comply with any provision of this Subpart or a13
lawful order of the commissioner.14
* * *15
§369.1. Reinstatement of license16
A. A vehicle mechanical breakdown insurer whose license has been17
suspended for failure to pay the annual renewal fee required by R.S. 22:36218
shall have his license reinstated if the annual renewal fee is paid within19
ninety days of the date of suspension, provided all other requirements of this20
Subpart have been met.21
B. A vehicle mechanical breakdown insurer whose license has been22
suspended for failure to file the annual audited financial statement required23
by R.S. 22:366 shall have his license reinstated if the annual audited financial24
statement is filed within ninety days of the deadline for filing provided in25
R.S. 22:366.26 HLS 14RS-1302 ENGROSSED
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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)]
Hunter HB No. 647
Abstract: Requires vehicle mechanical breakdown insurers to notify the commissioner of
insurance of any corporate structure changes within 60 days.
Present law requires vehicle mechanical breakdown insurers be licensed by the
commissioner of insurance, but does not require vehicle mechanical breakdown insurers to
notify the commissioner of insurance of any changes in their corporate structure.
Proposed law requires vehicle mechanical breakdown insurers licensed in La. to notify the
commissioner of insurance of any changes in their corporate structure. Such changes include
but are not limited to:
(1)Changes in officers or directors.
(2)Changes in ownership.
(3)Change in articles of incorporation.
(4)A merger.
(5)An addition or change of a trade name or "d/b/a".
(6)Cessation of business in the state.
Present law provides that the commissioner may suspend or revoke the license required of
vehicle mechanical breakdown insurers under certain conditions.
Proposed law retains present law but provides that the commissioner may levy a fine not to
exceed $1,000 rather than suspend or revoke the license.
Proposed law authorizes disciplinary action if a vehicle mechanical breakdown insurer fails
to comply with any present law provision or lawful order of the commissioner.
Proposed law grants a 90-day grace period for reinstatement of a vehicle mechanical
breakdown insurer's license when the insurer fails to timely pay the annual renewal fee or
file the annual audited financial statement.
(Amends R.S. 22:369(A)(intro. para.); Adds R.S. 22:362(C), 369(A)(5), and 369.1)
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Insurance to the original
bill.
1. Specified that the commissioner may levy a fine not to exceed $1,000 per
violation.
2. Provided that the commissioner may impose a fine, suspend, or revoke a license
for failure to comply with any provision of present law or lawful order of the
commissioner. HLS 14RS-1302 ENGROSSED
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3. Provided a 90-day grace period for reinstatement of a license that has been
suspended for failure to timely pay the annual renewal fee or failure to timely file
the annual audited financial statement.
4. Made various technical changes.