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