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)]
HB 511 Engrossed 2015 Regular Session Seabaugh
Abstract: Provides for the appointment of counsel in the rehabilitation, liquidation, or conservation
of insurers, and for the distribution of surplus receivership assets by the commissioner of
insurance.
Present law provides that in connection with matters involving rehabilitation, liquidation, or
conservation of domestic insurers in receivership, the commissioner of insurance (commissioner)
has the power to appoint special deputies, clerks, or assistants. The compensation of such
individuals is fixed. Associated expenses are required to be approved by the commissioner and the
court and are to be paid out of the funds or assets of the insurer.
Proposed law adds attorneys to the list of individuals the commissioner can appoint.
Present law provides for representation of the commissioner by the attorney general. Further
provides that the attorney general can appoint special counsel to provide this representation. The
attorney general is required to submit a certification of expenses and legal fees for staff and counsel.
Such fees and expenses are to be paid out of the funds or assets of the insurer. Proposed law repeals
present law.
Present law provides that attorneys employed by the attorney general are to be named by the
commissioner with approval of the attorney general and perform their duties under the supervision
of the attorney general. Proposed law repeals present law.
Proposed law provides that the commissioner may employ staff counsel of the Dept. of Insurance
or special counsel to provide representation. The fees and expenses of staff or special counsel may
be reimbursed upon approval by the commissioner and the court and paid from the funds or assets
of the insurer.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 22:2018 and 2034(G))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the original bill:
1. Clarify that the commissioner of insurance has the power to employ attorneys to assist him in matters related to the rehabilitation, liquidation, or conservation of insurers.
2. Remove proposed limitation on the commissioner's authority to appoint special counsel
in matters related to rehabilitation, liquidation, or conservation of insurers to matters in
which the assets of the insurer's estate are less than $1 million.
3. Allow reimbursement of the fees and expenses of special counsel appointed by the
commissioner to assist in matters related to rehabilitation, liquidation, or conservation
of insurers.
4. Remove requirement that the attorney general represent the commissioner in matters
covered in present law.
5. Remove authority for the attorney general to appoint special counsel or to provide for his
expenses.