HLS 15RS-1250 ORIGINAL
2015 Regular Session
HOUSE CONCURRENT RESOL UTION NO. 143
BY REPRESENTATIVE HARRISON
FINANCIAL INSTITUTIONS: Relative to Louisiana insurance laws regulating both
financial institutions and the unfair trade practice of tying banking products or
services to insurance products
1 A CONCURRENT RESOL UTION
2To urge and request that all financial institutions conducting business in the state of
3 Louisiana strictly comply with Subpart D of Chapter 5 of Title 22 of the Louisiana
4 Revised Statutes of 1950, comprised of R.S. 22:1591 through 1605, and known as
5 the Financial Institution Insurance Sales Law, requiring financial institutions to
6 adhere to the provisions of the Financial Institution Insurance Sales Law, to give due
7 consideration to the public interest in the regulation of state banking and insurance
8 industries, and to clarify the intent of the legislature.
9 WHEREAS, it has long been recognized that the regulation of our banking and
10insurance industries is of utmost importance to the public interest of our nation and the state
11of Louisiana; and
12 WHEREAS, the public interest in the regulation of those industries has been lawfully
13recognized pursuant to the provisions of Chapter 22 of Title 12 of the United States Code
14and pursuant to the provisions of Subpart D of Chapter 5 of Title 22 of the Louisiana
15Revised Statutes of 1950, comprised of R.S. 22:1591 through 1605, and known as the
16Financial Institution Insurance Sales Law; and
17 WHEREAS, R.S. 22:1596 states, "Any solicitation for the purchase or sale of any
18insurance product by any person, including a financial institution, its employees or agents,
19shall be conducted only by persons who have complied with all applicable state insurance
20licensing and appointment laws and regulations."; and
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HCR NO. 143
1 WHEREAS, R.S. 22:1597 states in pertinent part, "The solicitation of a customer of
2a financial institution for the purchase or sale of insurance shall not be conducted by any
3natural person directly responsible for making a specific loan or extension of credit to that
4customer before such time as the final decision regarding the acceptance or denial of that
5specific loan or extension of credit is made and communicated in writing to the customer.";
6and
7 WHEREAS, R.S. 22:1599(A) states in pertinent part, "A financial institution shall
8not in any manner extend credit, lease, or sell property of any kind, or furnish any service,
9or fix or vary the consideration for any of the foregoing, on the condition or requirement that
10the customer shall obtain insurance from the financial institution. In accordance with the
11provisions of this Subpart, the financial institution shall not represent that the purchase of
12an insurance product from a financial institution by a customer or prospective customer of
13the institution is required as a condition of, or is any way related to, the lending of money
14or extension of credit, the establishment or maintenance of a trust account, the establishment
15or maintenance of a checking, savings, or deposit account, or the provision of services
16related to any such activities." Additionally, R.S. 22:1599(B) states, "No financial
17institution shall offer an insurance product in combination with banking products unless the
18insurance products and banking products are available separately from the institution."; and
19 WHEREAS, R.S. 22:1600 requires, in pertinent part, financial institutions to obtain
20a separate written statement, signed by the customer, acknowledging that the customer has
21received and understands certain disclosures, including a disclosure that the customer is not
22required to purchase insurance through the financial institution and that the choice of another
23insurance provider by the customer will not affect the credit decision to be made by the
24financial institution or credit terms in any way; and
25 WHEREAS, the legislature finds that certain financial institutions doing business in
26the state of Louisiana have failed to comply with the provisions of the Financial Institution
27Insurance Sales Law resulting in unfair trade practices subject to regulation by the
28commissioner of insurance and resulting in an atmosphere that may foster methods of undue
29coercion, deception, enticement, and persuasion that are harmful not only to those persons
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HCR NO. 143
1competing in the industries of banking and insurance in the state of Louisiana but also to the
2interests of the customers of businesses in those industries and to the citizens of Louisiana.
3 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
4request that financial institutions strictly adhere to the provisions of the Financial Institution
5Insurance Sales Law in order to protect the lawfully recognized interests of the state of
6Louisiana, to protect those persons competing in the industries of banking and insurance, to
7protect the customers of those industries, and to protect the citizens of Louisiana.
8 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
9commissioner of insurance, the Louisiana Bankers' Association, and the commissioner of
10the office of financial institutions, who is hereby requested to distribute copies of this
11Resolution to the financial institutions conducting business in this state.
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)]
HCR 143 Original 2015 Regular Session Harrison
Requests that all financial institutions conducting business in Louisiana strictly comply with
present law (R.S. 22:1591-1605).
Requests the commissioner of the office of financial institutions to distribute copies of this
Resolution to the financial institutions conducting business in this state.
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