Louisiana House Bill HB221

Louisiana 2015 Regular Session

• Introduced: 3/31/15
• Refer: 3/31/15
• Refer: 4/13/15
• Report Pass: 4/21/15
• Engrossed: 4/27/15
• Refer: 4/28/15
• Report Pass: 5/13/15

Caption

Provides relative to reporting requirements for the surplus lines insurance tax

Impact

The adoption of HB 221 is expected to significantly streamline the reporting process for surplus lines insurance, potentially leading to greater compliance and less frequent bureaucratic oversight for brokers. It modifies Louisiana state law to relieve brokers of filing requirements that were previously mandatory, possibly encouraging more participation in the surplus lines market as the regulatory requirements become less cumbersome. This could enhance operational efficiency for these brokers and subsequently increase revenue for the state's general fund through the collection of insurance taxes.

Summary

House Bill 221 addresses the reporting requirements for surplus lines insurance brokers in Louisiana. The bill removes the necessity for surplus lines brokers to file quarterly reports for any quarter during which they did not place surplus lines business. Instead, it mandates that these brokers submit an annual report by March 1, reviewing all surplus lines transactions conducted in the previous calendar year or certifying the absence of activities. This reduction in reporting frequency aims to ease the administrative burden on brokers who may not have consistent business within a given quarter.

Sentiment

The sentiment surrounding HB 221 appears to be largely favorable among legislative members, particularly in the context of fostering a more business-friendly environment. The bill passed unanimously in the House, indicating a broad consensus regarding the necessity of reducing regulatory red tape for surplus lines brokers. However, some concerns were echoed regarding the implications of reduced oversight and the potential effects on accountability and transparency in the insurance sector. Overall, the support for the bill underscores a legislative trend in favor of facilitating business operations within the state.

Contention

While the bill received overwhelming support, some dissenting voices in the discussions highlighted potential risks associated with reduced reporting frequency, which could lead to missed opportunities for thorough oversight of broker activities. Critics suggested that the reduction in reporting could inadvertently shield less scrupulous practices from scrutiny, raising questions about the balance between easing regulatory burdens and protecting consumers. This tension reflects ongoing debates within the legislative context regarding the governance of the insurance market and the need for accountability alongside economic facilitation.