RDCSB216 421 3491
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)]
SB 216 Reengrossed 2015 Regular Session Morrish
Present law requires the Dept. of Insurance 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,
the office of licensing and compliance to the office of licensing, the office of consumer
advocacy to the office of consumer advocacy and diversity, and the division of minority
affairs to the division of diversity and opportunity. Adds the office of consumer services.
Present law provides for the functions and duties of the division of minority affairs 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. Further authorizes the division of
minority affairs to conduct a survey of insurance companies doing business in this state in
order to seek information and data relative to the policies and practices of hiring of and
contracting with minorities.
Proposed law deletes the requirement for the pilot program; otherwise transfers the functions
and duties of the division of minority affairs to the division of diversity and opportunity.
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 the Advisory Committee on Equal Opportunity within the office of
minority affairs with various functions, including assisting the commissioner and the
division of minority affairs in establishing educational and informational services to foster
a greater awareness of the opportunities available in the insurance industry and of the skills,
training, and education necessary to prepare for opportunities in employment, appointment
as producers, and contracting for services with insurance companies transacting business in
this state. Requires the commissioner to promulgate rules and regulations to implement
present law.
Proposed law places the Advisory Committee on Equal Opportunity within the division of
diversity and opportunity.
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 creates an assistant commissioner of diversity and opportunity who serves at
the pleasure of the commissioner at a salary fixed by the commissioner, which shall not
exceed the amount approved for the position by the legislature.
Page 1 of 3 RDCSB216 421 3491
Proposed law 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, including 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 DOI 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 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 instead provides for an office of consumer advocacy and diversity under the
direction of a deputy secretary who meets all the requirements of present law. Additionally
requires that the salary of the deputy commissioner for consumer advocacy and diversity not
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 makes these provisions applicable to the deputy commissioner for consumer
advocacy and diversity. Additionally, requires the deputy commissioner for consumer
advocacy and diversity to be responsible for the functions of the division of diversity and
opportunity within the department.
Present law provides for the La. Insurance Guaranty Assn. (LIGA), with the functions of
providing for the payment of covered claims under certain insurance policies with a
minimum delay and a minimum financial loss to claimants or policyholders due to the
insolvency of an insurer, providing financial assistance to member insurers under
rehabilitation or liquidation, and providing a mechanism to assess the cost of such operations
among insurers. Further authorizes LIGA to refund to its member insurers in proportion to
the contribution of each member insurer to LIGA that amount by which the assets of the
LIGA exceed the liabilities, if, at the end of any calendar year, the board of directors finds
that the assets of LIGA exceed the liabilities of LIGA as estimated by the board of directors
for the coming year.
Proposed law provides that with respect to state fiscal year 2014-2015, LIGA is authorized
to make a one-time transfer to the state general fund of the amount of such excess as
determined by the board of directors. Specifically states that this one-time authorization is
not intended to create any right or interest of the state in and to LIGA's funds, and that the
legislature hereby affirms its intent that LIGA monies may not be considered part of the
general fund of the state other than monies subject to the one-time transfer hereby
authorized.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 22:3, 31(A)(intro. para.) and (B), 32(A)(1)((intro. para.) and (B), 33(A)(intro.
para.), and 2058(B)(6) and R.S. 36:681(C)(1), 687, 691.1, 692, 694, and 696(A), (B)(1)(b),
(C), and (D); Adds R.S. 22:31(C) and (D) and R.S. 36:696(E); Repeals R.S. 22:31(A)(6)
and 32(C) and (D) and R.S. 36:696(B)(1)(e))
Page 2 of 3 RDCSB216 421 3491
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.
Senate Floor Amendments to engrossed bill
1. Makes Legislative Bureau technical changes.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the
reengrossed bill:
1. Make technical changes.
2. Add provisions relative to transfer of funds from the La. Insurance Guaranty
Assn. to the state general fund.
Page 3 of 3