SLS 15RS-414 ORIGINAL
2015 Regular Session
SENATE BILL NO. 216
BY SENATOR MORRISH
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
INSURANCE DEPARTMENT. Provides for the reorganization of the Louisiana
Department of Insurance. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 22:3, 32(C), the introductory paragraph of R.S. 22:33(A), R.S.
3 36:681(C)(1), 687, 691.1, 692, 694, and 696(A), (B)(1)(a) and (b), and (C), to enact
4 R.S. 22:31(C) and (D), and to repeal R.S. 22:31(6), 32(D) and (E), and R.S.
5 36:696(B)(1)(e), relative to the Louisiana Department of Insurance; to provide for
6 the composition of the department; to provide relative to the division of minority
7 affairs and the Advisory Committee on Equal Opportunity; to provide with respect
8 to the deputy commissioner for consumer services; to provide relative to the office
9 of health, life and annuity; to provide with respect to the deputy commissioner for
10 consumer advocacy; and to provide for related matters.
11 Be it enacted by the Legislature of Louisiana:
12 Section 1. R.S. 22:3, 32(C), and the introductory paragraph of R.S. 22:33(A) are
13 hereby amended and reenacted, and R.S. 22:31(C) and (D) are hereby enacted to read as
14 follows:
15 §3. Composition of Department of Insurance
16 The Department of Insurance shall be comprised of the office of the
17 commissioner, the office of management and finance, the office of property and
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1 casualty, the office of licensing and compliance, the office of financial solvency, the
2 office of consumer advocacy, the office of health insurance, life and annuity, the
3 office of consumer services, the division of insurance fraud, the division of legal
4 services, the division of public affairs, the division of minority affairs and any other
5 office or division that may be included by the Executive Reorganization Act or other
6 law. Each office or division shall be administered as prescribed by Titles 36 and 39
7 of the Louisiana Revised Statutes of 1950.
8 * * *
9 §31. Division of minority affairs
10 * * *
11 C. The division of minority affairs shall review all complaints alleging a
12 violation of the provisions of this Subpart. Upon receipt of a complaint, the
13 division of minority affairs shall notify an insurer against whom the complaint
14 was filed of the nature of the complaint and provide the insurer with the
15 opportunity to make a written explanation. As a part of the response, the
16 insurer may submit to the division of minority affairs any affirmative action
17 plan it may have in effect. The division of minority affairs shall consider any
18 affirmative action plan and any other pertinent information submitted to it in
19 determining whether or not the insurer has engaged in a pattern or practice of
20 employment discrimination prohibited by Part IV of Chapter 3-A of Title 23,
21 R.S. 23:332 et seq.
22 D. The division of minority affairs shall report apparent violations of this
23 Subpart to the commissioner of whom may at that time commence enforcement
24 proceedings in accordance with R.S. 22:33.
25 §32. Advisory Committee on Equal Opportunity
26 * * *
27 C. The committee shall review all complaints alleging a violation of the
28 provisions of this Subpart. Upon receipt of a complaint, the committee shall notify
29 the insurer against whom the complaint was filed of the nature of the complaint and
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1 provide the insurer with an opportunity to make a written explanation. As a part of
2 the response, the insurer may submit to the committee any affirmative action plan
3 it may have in effect. The committee shall consider any affirmative action plan
4 submitted to it, along with any other pertinent information submitted to it, in
5 determining whether the insurer has engaged in a pattern or practice of employment
6 discrimination prohibited by Part IV of Chapter 3-A of Title 23, R.S. 23:332 et seq.
7 E. Nothing contained in this Section or in R.S. 22:31 shall be construed to
8 expand the coverage of Part IV of Chapter 3-A of Title 23, R.S. 23:332 et seq. for
9 purposes of the sanctions authorized against insurers under R.S. 22:33.
10 §33. Sanctions
11 A. Whenever the commissioner of insurance receives notification of an
12 apparent violation from the advisory committee division of minority affairs, and
13 determines, after notice and opportunity for a hearing in accordance with the
14 Administrative Procedure Act, that an insurer has engaged in a pattern or practice of
15 employment discrimination prohibited by Part IV of Chapter 3-A of Title 23, R.S.
16 23:332 et seq., he may issue an order requiring the insurer to cease and desist
17 engaging in such unlawful act or practice. If the insurer does not comply with the
18 cease and desist order, the commissioner may then:
19 * * *
20 Section 2. R.S. 36:681(C)(1), 687, 691.1, 692, 694, 696(A), (B)(1)(a) and (b), and
21 (C) are hereby amended and reenacted to read as follows:
22 §681. Department of Insurance; creation; domicile; purposes and functions
23 * * *
24 C.(1) The officers of the department shall be the commissioner of insurance,
25 the chief deputy commissioner, the deputy commissioner for management and
26 finance, the deputy commissioner for property and casualty, the deputy
27 commissioner for insurance fraud, the deputy commissioner for licensing and
28 compliance, the deputy commissioner for financial solvency, the deputy
29 commissioner for health insurance, life and annuity, the deputy commissioner for
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1 public affairs, the deputy commissioner for minority affairs consumer services, the
2 deputy commissioner for consumer advocacy, and the executive counsel.
3 * * *
4 §687. Deputy commissioner for minority affairs consumer services; functions;
5 division of minority affairs consumer services
6 * * *
7 A. There shall be a deputy commissioner for minority affairs of the
8 Department of Insurance who shall be appointed by the commissioner of insurance
9 and who shall serve at the pleasure of the commissioner at a salary fixed by the
10 commissioner, which salary shall not exceed the amount approved for such position
11 by the legislature while in session. Each appointment by the commissioner shall be
12 submitted to the Senate for confirmation. The deputy commissioner for minority
13 affairs shall be directly responsible to and shall perform his functions under the
14 supervision and control of the commissioner of insurance.
15 B. The deputy commissioner for minority affairs shall direct and be
16 responsible for the functions of the division of minority affairs within the
17 Department of Insurance. In such capacity, he shall be responsible for assisting in
18 coordinating the activities of the Advisory Committee on Equal Opportunity,
19 establishing educational and information services regarding opportunities available
20 in the insurance industry and the skills, training, and education necessary to prepare
21 for such opportunities, assisting minority groups in obtaining employment, agent's
22 or agency contracts and contracts for services with insurance companies, There is
23 hereby created a division of consumer services under the direction of the deputy
24 commissioner of consumer services. The duties and functions of the division
25 and the deputy commissioner shall be responsible for the receipt and processing
26 of consumer complaints, market conduct analysis and examination, and such
27 additional duties and functions as are assigned by the commissioner.
28 * * *
29 §691.1. Division of insurance fraud
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1 There is hereby created a division of insurance fraud in the Department of
2 Insurance that shall be under the direction of the deputy commissioner for insurance
3 fraud. The duties and functions of the division of insurance fraud and the deputy
4 commissioner of insurance fraud shall be the investigation of alleged administrative
5 or civil fraudulent insurance acts, other administrative or civil violations of the
6 insurance laws of this state, and executive security, and such additional duties and
7 functions as assigned by the commissioner.
8 §692. Office of licensing and compliance; functions
9 There is hereby created an office of licensing and compliance in the
10 department of insurance. Such office shall be under the direction of the deputy
11 commissioner for licensing and compliance. The duties and functions of the office
12 of licensing and compliance and the deputy commissioner for the office of licensing
13 and compliance shall be as provided in this Title and as assigned by the
14 commissioner.
15 * * *
16 §694. Office of health insurance life, and annuity; functions
17 There is hereby created an office of health, life, and annuity insurance in the
18 Department of Insurance. The office shall be under the direction of the deputy
19 commissioner for health insurance, life, and annuity. The duties and functions of
20 the office of health insurance, life, and annuity and the deputy commissioner for
21 health insurance shall be responsible for development and administration of health
22 insurance pilot programs as established by the legislature, research and development
23 of rules and regulations to implement health insurance reform legislation, research
24 and development of health insurance reform measures that broaden the availability
25 of health insurance coverage in the state, liaison activities for the Department of
26 Insurance with other state and national agencies for policy on health insurance,
27 preparation of proposed health insurance reform legislation by the department;
28 general research and implementation issues concerning health insurance policy, and
29 additional duties and functions as assigned by the commissioner.
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1 * * *
2 §696. Deputy commissioner for consumer advocacy; functions; office of consumer
3 advocacy
4 A. There is hereby created an office of consumer advocacy in the Department
5 of Insurance. This office shall be under the direction of the deputy commissioner for
6 consumer advocacy, who shall be appointed by the commissioner of insurance with
7 advice and concurrence of the Senate and House committees on insurance and who
8 shall serve at the pleasure of the commissioner at a salary fixed by the
9 commissioner,which salary and benefits shall be the same as the majority of the
10 deputy commissioners of the Department of Insurance. The commissioner of
11 insurance shall appoint the deputy commissioner of consumer advocacy by October
12 1, 2007 that shall not exceed the amount approved for the position by the
13 legislature. The office of consumer advocacy shall be staffed with no fewer than
14 three full-time professional level civil service employees to manage complaints,
15 inquiries, and outreach. The office of consumer advocacy shall be staffed with no
16 fewer than two full-time journeyman level civil service employees to assist the
17 professional level employees. The office of consumer advocacy shall employ an
18 administrative assistant designated by the deputy commissioner who shall be
19 responsible for coordinating and directing travel, scheduling, office management,
20 and any other duties assigned by the deputy commissioner. The office of consumer
21 advocacy shall be housed within the Louisiana Department of Insurance and, as
22 funding is available, satellite offices may be opened as outlined in the rules and
23 regulations to be implemented by the commissioner of insurance pursuant to this
24 Section. The deputy commissioner for consumer advocacy shall be directly
25 responsible to and shall perform his functions under the supervision and control of
26 the commissioner of insurance.
27 B.(1) The office of consumer advocacy, through the deputy commissioner of
28 consumer advocacy, shall perform the following duties and functions concerning
29 products or services regulated by the Department of Insurance:
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1 (a) Receive inquiries and complaints from consumers.
2 (b) Prepare and disseminate such information as the department
3 commissioner deems appropriate to inform or assist consumers.
4 * * *
5 C. The deputy commissioner for consumer advocacy may be terminated
6 without cause shown. A written report of termination shall be compiled by the
7 commissioner of insurance and delivered to the clerk of the House of Representatives
8 and the secretary of Senate at least ten days before the termination and shall be
9 disclosed to the members of the respective houses of the legislature upon request.
10 The deputy commissioner for consumer advocacy shall be responsible for
11 the functions of the division of minority affairs within the department. There
12 shall be a director of minority affairs who shall be appointed by the
13 commissioner and who shall serve at the pleasure of and at a salary fixed by the
14 commissioner, which salary shall not exceed the amount approved for the
15 position by the legislature.
16 Section 3. R.S. 22:31(6), 32(D) and (E) and R.S. 36:696(B)(1)(e) are hereby
17 repealed.
18 Section 4. This Act shall become effective upon signature by the governor or, if not
19 signed by the governor, upon expiration of the time for bills to become law without signature
20 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
21 vetoed by the governor and subsequently approved by the legislature, this Act shall become
22 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Cheryl Horne.
DIGEST
SB 216 Original 2015 Regular Session Morrish
Present law requires the Dept. of Ins. to be comprised of the office of the commissioner, the
office of management and finance, the office of property and casualty, the office of licensing
and compliance, the office of financial solvency, the office of consumer advocacy, the office
of health insurance, the division of insurance fraud, the division of legal services, the
division of public affairs, the division of minority affairs, and any other office or division
that may be included in present law.
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Proposed law changes the office of health insurance to the office of health, life, and annuity.
Adds the office of consumer services and removes the division of minority affairs as part of
the composition of the department.
Present law provides for the division of minority affairs with the functions and duties which
include the requirement to develop a pilot program that seeks to address the needs and
concerns of minority and women producers in the state.
Proposed law deletes the pilot program provisions.
Proposed law requires the division of minority affairs to review all complaints alleging a
violation of the provisions of present law with regard to equal opportunity in insurance.
Further requires the division of minority affairs to notify an insurer against whom a
complaint was filed of the nature of the complaint and provide the insurer with the
opportunity to make a written explanation.
Proposed law requires the division of minority affairs to report apparent violations of present
law to the commissioner who may commence enforcement proceedings in accordance with
present law.
Present law creates an advisory committee on equal opportunity within the department with
the function to review all complaints alleging a violation of the provisions of present law
with regard to equal opportunity in insurance.
Proposed law removes this review function.
Present law creates a deputy commissioner of minority affairs appointed by the
commissioner who serves at the pleasure of the commissioner at a salary fixed by the
commissioner and requires Senate confirmation of the appointment.
Proposed law deletes these provisions and creates the division of consumer services under
the direction of the deputy commissioner of consumer services. Provides that the duties and
functions of the division and the deputy commissioner shall be responsible for the receipt
and processing of consumer complaints, market conduct analysis and examination, and such
additional duties and functions as are assigned by the commissioner.
Proposed law creates the office of health, life and annuity with the responsibility for the
development and administration of health insurance pilot programs, research and
development of rules and regulations to implement health insurance reform legislation,
research and development of health insurance reform measures that broaden the availability
of health insurance coverage in the state, liaison activities for the Depart. of Ins. with other
state and national agencies for policy on health insurance, preparation of proposed health
insurance reform legislation by the department; general research and implementation issues
concerning health insurance policy, and additional duties and functions as assigned by the
commissioner.
Present law provides for the office of consumer advocacy in the department which is under
the direction of the deputy commissioner for consumer advocacy who is appointed by the
commissioner with advice and concurrence of the Senate and House committees on
insurance.
Proposed law removes the requirement of the appointment of the deputy commissioner for
consumer advocacy with advice and concurrence of the Senate and House committees on
insurance.
Present law requires the salary and benefits of the deputy commissioner for consumer
advocacy to be the same as the majority of the deputy commissioners of the department.
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Proposed law requires the salary of the deputy commissioner for consumer advocacy not to
exceed the amount approved for the position by the legislature.
Present law permits the deputy commissioner for consumer advocacy to be terminated
without cause shown. Further requires a written report of termination to be compiled by the
commissioner and delivered to the clerk of the House of Representatives and the secretary
of the Senate at least ten days before the termination.
Proposed law deletes the termination provisions.
Proposed law requires the deputy commissioner for consumer advocacy to be responsible
for the functions of the division of minority affairs within the department. Further requires
a director of minority affairs to be appointed by the commissioner who shall serve at the
pleasure of and at a salary fixed by the commissioner, which salary shall not exceed the
amount approved by the legislature.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 22:3, 32(C), 33(A)(intro para), R.S. 36:681(C)(1), 687, 691.1, 692, 694,
696(A), (B)(1)(a) and (b), and (C); adds R.S. 22:31(C) and (D); repeals R.S. 22:31(6), 32(D)
and (E), and R.S. 36:696(B)(1)(e))
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