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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 diversity and opportunity
10 * * *
11 C. The division of diversity and opportunity shall review all complaints
12 alleging a violation of the provisions of this Subpart. Upon receipt of a
13 complaint, the division shall notify an insurer against whom the complaint was
14 filed of the nature of the complaint and provide the insurer with the opportunity
15 to make a written explanation. As a part of the response, the insurer may
16 submit to the division any affirmative action plan it may have in effect. The
17 division shall consider any affirmative action plan and any other pertinent
18 information submitted to it in determining whether or not the insurer has
19 engaged in a pattern or practice of employment discrimination prohibited by
20 Part IV of Chapter 3-A of Title 23, R.S. 23:332 et seq.
21 D. The division of diversity and opportunity shall report apparent
22 violations of this Subpart to the commissioner who may commence enforcement
23 proceedings in accordance with R.S. 22:33.
24 §32. Advisory Committee on Equal Opportunity
25 * * *
26 C. The committee shall review all complaints alleging a violation of the
27 provisions of this Subpart. Upon receipt of a complaint, the committee shall notify
28 the insurer against whom the complaint was filed of the nature of the complaint and
29 provide the insurer with an opportunity to make a written explanation. As a part of
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1 the response, the insurer may submit to the committee any affirmative action plan
2 it may have in effect. The committee shall consider any affirmative action plan
3 submitted to it, along with any other pertinent information submitted to it, in
4 determining whether the insurer has engaged in a pattern or practice of employment
5 discrimination prohibited by Part IV of Chapter 3-A of Title 23, R.S. 23:332 et seq.
6 E. Nothing contained in this Section or in R.S. 22:31 shall be construed to
7 expand the coverage of Part IV of Chapter 3-A of Title 23, R.S. 23:332 et seq. for
8 purposes of the sanctions authorized against insurers under R.S. 22:33.
9 §33. Sanctions
10 A. Whenever the commissioner of insurance receives notification of an
11 apparent violation from the advisory committee division of diversity and
12 opportunity, and determines, after notice and opportunity for a hearing in
13 accordance with the Administrative Procedure Act, that an insurer has engaged in a
14 pattern or practice of employment discrimination prohibited by Part IV of Chapter
15 3-A of Title 23, R.S. 23:332 et seq., he may issue an order requiring the insurer to
16 cease and desist engaging in such unlawful act or practice. If the insurer does not
17 comply with the cease and desist order, the commissioner may then:
18 * * *
19 Section 2. R.S. 36:681(C)(1), 687, 691.1, 692, 694, 696(A), (B)(1)(a) and (b), and
20 (C) are hereby amended and reenacted to read as follows:
21 §681. Department of Insurance; creation; domicile; purposes and functions
22 * * *
23 C.(1) The officers of the department shall be the commissioner of insurance,
24 the chief deputy commissioner, the deputy commissioner for management and
25 finance, the deputy commissioner for property and casualty, the deputy
26 commissioner for insurance fraud, the deputy commissioner for licensing and
27 compliance, the deputy commissioner for financial solvency, the deputy
28 commissioner for health insurance, life and annuity, the deputy commissioner for
29 public affairs, the deputy commissioner for minority affairs consumer services, the
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1 deputy commissioner for consumer advocacy and diversity, the assistant
2 commissioner of diversity and opportunity, 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 the receipt and processing of consumer
26 complaints, market conduct analysis and examination, and such additional duties
27 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, life, and annuity shall be responsible for development and
22 administration of health insurance pilot programs as established by the legislature,
23 research and development of rules and regulations to implement health insurance
24 reform legislation, research and development of health insurance reform measures
25 that broaden the availability of health insurance coverage in the state, liaison
26 activities for the Department of Insurance with other state and national agencies for
27 policy on health insurance, preparation of proposed health insurance reform
28 legislation by the department; general research and implementation issues
29 concerning health insurance policy, approval of life and annuity form filings, and
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1 additional duties and functions as assigned by the commissioner.
2 * * *
3 §696. Deputy commissioner for consumer advocacy and diversity; functions; office
4 of consumer advocacy and diversity
5 A. There is hereby created an office of consumer advocacy and diversity in
6 the Department of Insurance. This office shall be under the direction of the deputy
7 commissioner for consumer advocacy and diversity, who shall be appointed by the
8 commissioner of insurance with advice and concurrence of the Senate and House
9 committees on insurance and who shall serve at the pleasure of the commissioner at
10 a salary fixed by the commissioner,which salary and benefits shall be the same as the
11 majority of the deputy commissioners of the Department of Insurance. The
12 commissioner of insurance shall appoint the deputy commissioner of consumer
13 advocacy by October 1, 2007 that shall not exceed the amount approved for the
14 position by the legislature. The office of consumer advocacy and diversity shall
15 be staffed with no fewer than three full-time professional level civil service
16 employees to manage complaints, inquiries, and outreach. The office of consumer
17 advocacy and diversity shall be staffed with no fewer than two full-time journeyman
18 level civil service employees to assist the professional level employees. The office
19 of consumer advocacy and diversity shall employ an administrative assistant
20 designated by the deputy commissioner who shall be responsible for coordinating
21 and directing travel, scheduling, office management, and any other duties assigned
22 by the deputy commissioner. The office of consumer advocacy and diversity shall
23 be housed within the Louisiana Department of Insurance and, as funding is available,
24 satellite offices may be opened as outlined in the rules and regulations to be
25 implemented by the commissioner of insurance pursuant to this Section. The deputy
26 commissioner for consumer advocacy and diversity shall be directly responsible to
27 and shall perform his functions under the supervision and control of the
28 commissioner of insurance.
29 B.(1) The office of consumer advocacy and diversity, through the deputy
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1 commissioner of consumer advocacy and diversity, shall perform the following
2 duties and functions concerning products or services regulated by the Department of
3 Insurance:
4 (a) Receive inquiries and complaints from consumers.
5 (b) Prepare and disseminate such information as the department
6 commissioner deems appropriate to inform or assist consumers.
7 * * *
8 C. The deputy commissioner for consumer advocacy and diversity may be
9 terminated without cause shown. A written report of termination shall be compiled
10 by the commissioner of insurance and delivered to the clerk of the House of
11 Representatives and the secretary of the Senate at least ten days before the
12 termination and shall be disclosed to the members of the respective houses of the
13 legislature upon request.
14 D. The deputy commissioner for consumer advocacy and diversity shall
15 be responsible for the functions of the division of minority affairs within the
16 department. There shall be an assistant commissioner of diversity and
17 opportunity who shall be appointed by the commissioner. The assistant
18 commissioner of diversity and opportunity shall serve at the pleasure of the
19 commissioner and at a salary fixed by the commissioner, which salary shall not
20 exceed the amount approved for the position by the legislature.
21 Section 3. R.S. 22:31(6), 32(D) and (E) and R.S. 36:696(B)(1)(e) are hereby
22 repealed.
23 Section 4. This Act shall become effective upon signature by the governor or, if not
24 signed by the governor, upon expiration of the time for bills to become law without signature
25 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
26 vetoed by the governor and subsequently approved by the legislature, this Act shall become
27 effective on the day following such approval.
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Cheryl Horne.
DIGEST
SB 216 Engrossed 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.
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 diversity and opportunity 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 diversity and opportunity 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 diversity and opportunity 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, approval of life and annuity form filings, and additional
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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.
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.
Proposed law requires the salary of the deputy commissioner for consumer advocacy and
diversity 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 requires the deputy commissioner for consumer advocacy and diversity to be
responsible for the functions of the division of minority affairs within the department.
Further requires an assistant commissioner of diversity and opportunity 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))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Insurance to the original
bill
1. Changes the division of minority affairs to the division of diversity and
opportunity.
2. Changes the office of consumer advocacy to the office of consumer advocacy
and diversity.
3. Creates the position of an assistant commissioner of diversity and
opportunity.
4. Makes technical changes.
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