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Regular Session, 2014
HOUSE BILL NO. 660
BY REPRESENTATIVE PIERRE
INSURERS: Provides relative to property residual value insurers
AN ACT1
To amend and reenact R.S. 22:382 and 389(A)(introductory paragraph) and to enact R.S.2
22:389(A)(5) and 389.1, relative to property residual value insurers; to provide that3
a property residual value insurer shall notify the commissioner of insurance within4
sixty days of any material change in its ownership, control, or other circumstance5
affecting its qualifications for a license; to permit the commissioner of insurance to6
levy a fine; to authorize the commissioner to levy a fine, suspend, or revoke a license7
under certain circumstances; to provide for reinstatement of license for failure to pay8
the annual license renewal fee; to provide for reinstatement of license for failure to9
file the annual audited financial statement; and to provide for related matters.10
Be it enacted by the Legislature of Louisiana:11
Section 1. R.S. 22:382 and 389(A)(introductory paragraph) are hereby amended and12
reenacted and R.S. 22:389(A)(5) and 389.1 are enacted to read as follows: 13
§382. License required of property residual value insurer ; notice of material change14
required15
A. No person shall act as or attempt to act as a property residual value16
insurer unless licensed to do so by the commissioner. Each application shall be17
submitted to the commissioner along with the fee for such license in the amount of18
one thousand five hundred dollars. Licenses shall be renewed annually upon payment19
of a fee of one thousand five hundred dollars, which shall be paid no later than20
March fifteenth of each year.21 HLS 14RS-1303 ENGROSSED
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B. A licensee shall notify the commissioner within sixty days of any material1
change in its ownership, control, or other fact or circumstance affecting its2
qualification for a license in this state. Material changes shall include but are not3
limited to the following:4
(1) Changes in officers or directors.5
(2) Changes in ownership.6
(3) Change in articles of incorporation.7
(4) A merger.8
(5) An addition or change of a trade name or "d/b/a".9
(6) Cessation of business in Louisiana.10
* * *11
§389. Revocation or suspension of license; fine12
A. The commissioner may levy a fine not to exceed one thousand dollars per13
violation or revoke or suspend any license required by this Subpart in accordance14
and compliance with R.S. 49:961. Any license issued under the provisions of this15
Subpart shall be revoked or suspended for the following causes: for any of the16
following:17
* * *18
(5) If the insurer fails to comply with any provision of this Subpart or a19
lawful order of the commissioner.20
* * *21
§389.1. Reinstatement of license22
A. A property residual value insurer whose license has been suspended for23
failure to pay the annual renewal fee required by R.S. 22:382 shall have his license24
reinstated if the annual renewal fee is paid within ninety days of the date of25
suspension, provided all other requirements of this Subpart have been met.26
B. A property residual value insurer whose license has been suspended for27
failure to file the annual audited financial statement required by R.S. 22:386 shall28 HLS 14RS-1303 ENGROSSED
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have his license reinstated if the annual audited financial statement is filed within1
ninety days of the deadline for filing provided in R.S. 22:386.2
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)]
Pierre HB No. 660
Abstract: Requires property residual value insurers to notify the commissioner of insurance
of any corporate structure changes within 60 days.
Present law requires property residual value insurers be licensed by the commissioner of
insurance but does not require property residual value insurers to notify the commissioner
of insurance of any changes in their corporate structure.
Proposed law requires property residual value 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 La.
Present law provides that the commissioner may suspend or revoke the license of a property
residual value insurer.
Proposed law retains present law but also provides that the commissioner may levy a fine
not to exceed $1,000 in lieu of suspending or revoking the license.
Proposed law authorizes disciplinary action if a property residual value 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 property residual value
insurer's license when the insurer fails to timely pay the annual renewal fee or file the annual
audited financial statement.
(Amends R.S. 22:382 and 389(A)(intro. para.); Adds R.S. 22:389(A)(5) and 389.1)
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 of up to $1,000 per violation. HLS 14RS-1303 ENGROSSED
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2. Provided that the commissioner may impose a fine, revoke, or suspend a license
for failure to comply with any provision of present law or a lawful order of the
commissioner.
3. Provided a 90-day grace period for reinstatement of a license 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.