HLS 16RS-4554 ORIGINAL
2016 Regular Session
HOUSE CONCURRENT RESOL UTION NO. 132
BY REPRESENTATIVE SEABAUGH
INSURANCE COMMISSIONER: Urges and requests the Department of Insurance to study
the issuance of private letter rulings by the commissioner of insurance
1 A CONCURRENT RESOL UTION
2To urge and request the Department of Insurance to study the issuance of private letter
3 rulings by the commissioner of insurance.
4 WHEREAS, a private letter ruling has been defined as a document that states the
5intent of a state insurance commissioner to take no enforcement action with respect to an
6insurer regarding the subject matter of the private letter ruling; and
7 WHEREAS, a private letter ruling is not a statement of general applicability for
8which promulgation of a rule or regulation is appropriate; and
9 WHEREAS, a private letter ruling is limited in its effect to the matter described in
10the private letter ruling and has no precedential value; and
11 WHEREAS, only an insurer may request a private letter ruling; and
12 WHEREAS, the Louisiana Department of Insurance is concerned about its ability
13to issue informal opinions to insurance companies regarding the proposed actions of a
14particular insurance company based on a specific set of facts presented by the company; and
15 WHEREAS, the authority to issue private letter rulings may allow department
16regulators to do their jobs more effectively and efficiently by proactively communicating
17with an insurance company about both proposed action prior to the company's taking action
18or implementing policies or procedures which could result in regulatory action being
19initiated against it; and
Page 1 of 2 HLS 16RS-4554 ORIGINAL
HCR NO. 132
1 WHEREAS, the issuance of private letter rulings may allow insurance companies
2and the Louisiana Department of Insurance to work together to determine whether a
3particular company's proposed actions are authorized by the Louisiana Insurance Code; and
4 WHEREAS, such efforts could reduce regulatory uncertainty and unnecessary
5regulatory costs that are ultimately passed on to consumers.
6 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
7urge and request the Department of Insurance to study the issuance of private letter rulings
8by the commissioner of insurance.
9 BE IT FURTHER RESOLVED that the Department of Insurance shall submit its
10findings from the study in the form of a report to the House Committee on Insurance and
11Senate Committee on Insurance on or before January 15, 2017.
12 BE IT FURTHER RESOLVED that such a study include a review of other states to
13determine what actions, particularly the consideration or enactment of legislation, have been
14taken on this subject by other states.
15 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
16commissioner of insurance.
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 132 Original 2016 Regular Session Seabaugh
Urges and requests the Department of Insurance to study the issuance of private letter rulings
by the commissioner of insurance and to report findings and recommendations to the
legislative committees on insurance on or before Jan. 1, 2017.
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