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.
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.