2015 Regular Session ENROLLED
SENATE BILL NO. 216
BY SENATOR MORRISH
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
1 AN ACT
2 To amend and reenact R.S. 22:3, 31(A)(introductory paragraph) and (B),
3 32(A)(1)(introductory paragraph) and (B), 33(A)(introductory paragraph), and
4 2058(B)(6) and R.S. 36:681(C)(1), 687, 691.1, 692, 694, and 696(A),
5 (B)(1)(introductory paragraph) and (b), (C), and (D), to enact R.S. 22:31(C) and (D)
6 and R.S. 36:696(E), and to repeal R.S. 22:31(A)(6), 32(C) and (D), and R.S.
7 36:696(B)(1)(e), relative to the Louisiana Department of Insurance and related
8 entities; to provide for the composition of the department; to provide relative to the
9 division of diversity and opportunity and the Advisory Committee on Equal
10 Opportunity; to provide with respect to the deputy commissioner for consumer
11 services; to provide relative to the office of health, life and annuity; to provide with
12 respect to the deputy commissioner for consumer advocacy and diversity; to provide
13 with respect to the transfer of certain funds; and to provide for related matters.
14 Be it enacted by the Legislature of Louisiana:
15 Section 1. R.S. 22:3, 31(A)(introductory paragraph) and (B), 32(A)(1)(introductory
16 paragraph) and (B), 33(A)(introductory paragraph), and 2058(B)(6) are hereby amended and
17 reenacted, and R.S. 22:31(C) and (D) are hereby enacted to read as follows:
18 §3. Composition of Department of Insurance
19 The Department of Insurance shall be comprised of the office of the
20 commissioner, the office of management and finance, the office of property and
21 casualty, the office of licensing and compliance, the office of financial solvency, the
22 office of consumer advocacy and diversity, the office of health insurance, life and
23 annuity, the office of consumer services, the division of insurance fraud, the
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1 division of legal services, the division of public affairs, the division of minority
2 affairs diversity and opportunity and any other office or division that may be
3 included by the Executive Reorganization Act or other law. Each office or division
4 shall be administered as prescribed by Titles 36 and 39 of the Louisiana Revised
5 Statutes of 1950.
6 * * *
7 §31. Division of minority affairs diversity and opportunity
8 A. There is hereby created within the Department of Insurance a division of
9 minority affairs diversity and opportunity which shall have the following functions
10 and duties:
11 * * *
12 B. The division of minority affairs diversity and opportunity may conduct
13 a survey of insurance companies doing business in Louisiana in order to seek
14 information and data relative to the policies and practices of hiring of and contracting
15 with minorities. The survey, data, and responses thereto shall not be a public record
16 as defined by the Public Records Law and shall be exempt from disclosure, except
17 such exemption shall not apply with respect to the aggregated number of minorities
18 hired and the positions for which they were hired.
19 C. The division of diversity and opportunity shall review all complaints
20 alleging a violation of the provisions of this Subpart. Upon receipt of a
21 complaint, the division shall notify an insurer against whom the complaint was
22 filed of the nature of the complaint and provide the insurer with the opportunity
23 to make a written explanation. As a part of the response, the insurer may
24 submit to the division any affirmative action plan it may have in effect. The
25 division shall consider any affirmative action plan and any other pertinent
26 information submitted to it in determining whether or not the insurer has
27 engaged in a pattern or practice of employment discrimination prohibited by
28 Part IV of Chapter 3-A of Title 23, R.S. 23:331 et seq.
29 D. The division of diversity and opportunity shall report apparent
30 violations of this Subpart to the commissioner who may commence enforcement
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1 proceedings in accordance with R.S. 22:33.
2 §32. Advisory Committee on Equal Opportunity
3 A.(1) There is hereby created within the Department of Insurance, in the
4 division of minority affairs, diversity and opportunity, the Advisory Committee on
5 Equal Opportunity. The committee shall be composed of twenty-five members.
6 Twenty-four members shall be appointed by the governor and shall serve at his
7 pleasure. The deputy commissioner of minority affairs diversity and opportunity
8 shall serve ex officio as the twenty-fifth member. Five members shall be appointed
9 from a list of nominees submitted by the Louisiana chapter of The National
10 Association for the Advancement of Colored People, the Urban League of Greater
11 New Orleans, Inc., the Baton Rouge chapter of the National Association for the
12 Advancement of Colored People, the Monroe chapter of the National Association for
13 the Advancement of Colored People, and the Shreveport chapter of the National
14 Association for the Advancement of Colored People. Two members shall be
15 appointed from a list of nominees submitted by the deans of the business schools of
16 Dillard University, Xavier University, Southern University, and Grambling
17 University. Seventeen members shall be appointed from a list of nominees, one
18 nominee to be submitted by each of the following associations or groups:
19 * * *
20 B. The committee shall assist the commissioner of insurance and the division
21 of minority affairs diversity and opportunity in establishing educational and
22 informational services to foster a greater awareness of the opportunities available in
23 the insurance industry and of the skills, training, and education necessary to prepare
24 for opportunities in employment, appointment as producers, and contracting for
25 services with insurance companies transacting business in Louisiana. The
26 commissioner of insurance shall promulgate rules and regulations to implement this
27 Subpart.
28 * * *
29 §33. Sanctions
30 A. Whenever the commissioner of insurance receives notification of an
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1 apparent violation from the advisory committee division of diversity and
2 opportunity, and determines, after notice and opportunity for a hearing in
3 accordance with the Administrative Procedure Act, that an insurer has engaged in a
4 pattern or practice of employment discrimination prohibited by Part IV of Chapter
5 3-A of Title 23, R.S. 23:332 23:331 et seq., he may issue an order requiring the
6 insurer to cease and desist engaging in such unlawful act or practice. If the insurer
7 does not comply with the cease and desist order, the commissioner may then:
8 * * *
9 §2058. Powers and duties of the association
10 * * *
11 B. The association may:
12 * * *
13 (6)(a) Refund to the member insurers in proportion to the contribution of
14 each member insurer to the association that amount by which the assets of the
15 association exceed the liabilities, if, at the end of any calendar year, the board of
16 directors finds that the assets of the association exceed the liabilities of the
17 association as estimated by the board of directors for the coming year.
18 (b) With respect to state fiscal year 2014-2015, the association is hereby
19 authorized to make a one-time transfer to the state general fund of the amount
20 of such excess as determined by the board of directors. This one-time
21 authorization is not intended to create any right or interest of the state in and
22 to the association's funds, and the legislature hereby affirms its intent that
23 association monies may not be considered part of the general fund of the state
24 other than monies subject to the one-time transfer hereby authorized.
25 * * *
26 Section 2. R.S. 36:681(C)(1), 687, 691.1, 692, 694, 696(A),(B)(1)(introductory
27 paragraph) and (b), (C), and (D) are hereby amended and reenacted and R.S. 36:696(E) is
28 hereby enacted to read as follows:
29 §681. Department of Insurance; creation; domicile; purposes and functions
30 * * *
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1 C.(1) The officers of the department shall be the commissioner of insurance,
2 the chief deputy commissioner, the deputy commissioner for management and
3 finance, the deputy commissioner for property and casualty, the deputy
4 commissioner for insurance fraud, the deputy commissioner for licensing and
5 compliance, the deputy commissioner for financial solvency, the deputy
6 commissioner for health insurance, life and annuity, the deputy commissioner for
7 public affairs, the deputy commissioner for minority affairs consumer services, the
8 deputy commissioner for consumer advocacy and diversity, the assistant
9 commissioner of diversity and opportunity, and the executive counsel.
10 * * *
11 §687. Deputy commissioner for minority affairs consumer services; functions;
12 division of minority affairs consumer services
13 A. There shall be a deputy commissioner for minority affairs of the
14 Department of Insurance who shall be appointed by the commissioner of insurance
15 and who shall serve at the pleasure of the commissioner at a salary fixed by the
16 commissioner, which salary shall not exceed the amount approved for such position
17 by the legislature while in session. Each appointment by the commissioner shall be
18 submitted to the Senate for confirmation. The deputy commissioner for minority
19 affairs shall be directly responsible to and shall perform his functions under the
20 supervision and control of the commissioner of insurance.
21 B. The deputy commissioner for minority affairs shall direct and be
22 responsible for the functions of the division of minority affairs within the
23 Department of Insurance. In such capacity, he shall be responsible for assisting in
24 coordinating the activities of the Advisory Committee on Equal Opportunity,
25 establishing educational and information services regarding opportunities available
26 in the insurance industry and the skills, training, and education necessary to prepare
27 for such opportunities, assisting minority groups in obtaining employment, agent's
28 or agency contracts and contracts for services with insurance companies There is
29 hereby created a division of consumer services under the direction of the deputy
30 commissioner of consumer services. The duties and functions of the division
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1 and the deputy commissioner shall be the receipt and processing of consumer
2 complaints, market conduct analysis and examination, and such additional duties
3 and functions as are assigned by the commissioner.
4 * * *
5 §691.1. Division of insurance fraud
6 There is hereby created a division of insurance fraud in the Department of
7 Insurance that shall be under the direction of the deputy commissioner for insurance
8 fraud. The duties and functions of the division of insurance fraud and the deputy
9 commissioner of insurance fraud shall be the investigation of alleged administrative
10 or civil fraudulent insurance acts, other administrative or civil violations of the
11 insurance laws of this state, and executive security, and such additional duties and
12 functions as assigned by the commissioner.
13 §692. Office of licensing and compliance; functions
14 There is hereby created an office of licensing and compliance in the
15 department of insurance. Such office shall be under the direction of the deputy
16 commissioner for licensing and compliance. The duties and functions of the office
17 of licensing and compliance and the deputy commissioner for the office of licensing
18 and compliance shall be as provided in this Title and as assigned by the
19 commissioner.
20 * * *
21 §694. Office of health insurance, life, and annuity; functions
22 There is hereby created an office of health, life, and annuity insurance in the
23 Department of Insurance. The office shall be under the direction of the deputy
24 commissioner for health insurance, life, and annuity. The duties and functions of
25 the office of health insurance, life, and annuity and the deputy commissioner for
26 health insurance, life, and annuity shall be responsible for development and
27 administration of health insurance pilot programs as established by the legislature,
28 research and development of rules and regulations to implement health insurance
29 reform legislation, research and development of health insurance reform measures
30 that broaden the availability of health insurance coverage in the state, liaison
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1 activities for the Department of Insurance with other state and national agencies for
2 policy on health insurance, preparation of proposed health insurance reform
3 legislation by the department; general research and implementation issues
4 concerning health insurance policy, approval of life and annuity form filings, and
5 additional duties and functions as assigned by the commissioner.
6 * * *
7 §696. Deputy commissioner for consumer advocacy and diversity; functions; office
8 of consumer advocacy and diversity
9 A. There is hereby created an office of consumer advocacy and diversity in
10 the Department of Insurance. This office shall be under the direction of the deputy
11 commissioner for consumer advocacy and diversity, who shall be appointed by the
12 commissioner of insurance with advice and concurrence of the Senate and House
13 committees on insurance and who shall serve at the pleasure of the commissioner at
14 a salary fixed by the commissioner,which salary and benefits shall be the same as the
15 majority of the deputy commissioners of the Department of Insurance. The
16 commissioner of insurance shall appoint the deputy commissioner of consumer
17 advocacy by October 1, 2007 that shall not exceed the amount approved for the
18 position by the legislature. The office of consumer advocacy and diversity shall
19 be staffed with no fewer than three full-time professional level civil service
20 employees to manage complaints, inquiries, and outreach. The office of consumer
21 advocacy and diversity shall be staffed with no fewer than two full-time journeyman
22 level civil service employees to assist the professional level employees. The office
23 of consumer advocacy and diversity shall employ an administrative assistant
24 designated by the deputy commissioner who shall be responsible for coordinating
25 and directing travel, scheduling, office management, and any other duties assigned
26 by the deputy commissioner. The office of consumer advocacy and diversity shall
27 be housed within the Louisiana Department of Insurance and, as funding is available,
28 satellite offices may be opened as outlined in the rules and regulations to be
29 implemented by the commissioner of insurance pursuant to this Section. The deputy
30 commissioner for consumer advocacy and diversity shall be directly responsible to
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1 and shall perform his functions under the supervision and control of the
2 commissioner of insurance.
3 B.(1) The office of consumer advocacy and diversity, through the deputy
4 commissioner of consumer advocacy and diversity, shall perform the following
5 duties and functions concerning products or services regulated by the Department of
6 Insurance:
7 * * *
8 (b) Prepare and disseminate such information as the department
9 commissioner deems appropriate to inform or assist consumers.
10 * * *
11 C. The deputy commissioner for consumer advocacy and diversity may be
12 terminated without cause shown. A written report of termination shall be compiled
13 by the commissioner of insurance and delivered to the clerk of the House of
14 Representatives and the secretary of the Senate at least ten days before the
15 termination and shall be disclosed to the members of the respective houses of the
16 legislature upon request.
17 D. The deputy commissioner for consumer advocacy and diversity shall
18 be responsible for the functions of the division of diversity and opportunity
19 within the department. There shall be an assistant commissioner of diversity
20 and opportunity who shall be appointed by the commissioner. The assistant
21 commissioner of diversity and opportunity shall serve at the pleasure of the
22 commissioner and at a salary fixed by the commissioner, which salary shall not
23 exceed the amount approved for the position by the legislature.
24 E. The commissioner of insurance may adopt rules and regulations necessary
25 to implement the provisions of this Section.
26 Section 3. R.S. 22:31(A)(6) and 32(C) and (D) and R.S. 36:696(B)(1)(e) are hereby
27 repealed in their entirety.
28 Section 4. This Act shall become effective upon signature by the governor or, if not
29 signed by the governor, upon expiration of the time for bills to become law without signature
30 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
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1 vetoed by the governor and subsequently approved by the legislature, this Act shall become
2 effective on the day following such approval.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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