HLS 18RS-735 ORIGINAL
2018 Regular Session
HOUSE BILL NO. 607
BY REPRESENTATIVE SEABAUGH
INSURANCE: Provides relative to the commissioner of insurance's examination and
investigation authority
1 AN ACT
2To amend and reenact R.S. 22:1983(E)(2), (G), and (H), 1984(G), and 2191(A)(2), relative
3 to examinations and investigations by the commissioner of insurance; to provide for
4 appellate review of examination reports; to provide for appellate review of certain
5 fines; to provide for an effective date; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 22:1983(E)(2), (G), and (H), 1984(G), and 2191(A)(2) are hereby
8amended and reenacted to read as follows:
9 §1983. Examination reports
10 * * *
11 E. Within thirty days of the end of the period allowed for the receipt of
12 written submissions or rebuttals, as provided for in Subsections B and D of this
13 Section, the commissioner shall fully consider and review the refiled report, together
14 with any written submissions or rebuttals and any relevant portions of the
15 workpapers of the examiner and enter an order either:
16 * * *
17 (2) Rejecting the examination report and ordering a hearing pursuant to the
18 provisions of Chapter l2 of this Title, for purposes of obtaining additional
19 documentation, data, information, and testimony.
20 * * *
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HB NO. 607
1 G.(1) Within thirty days of receipt of notification of the order of the
2 commissioner to the company made pursuant to Subsection F of this Section, the
3 company may make written demand for a hearing pursuant to the provisions of
4 Chapter 12 of this Title. an appeal to the Nineteenth Judicial District Court.
5 (2) The court shall conduct a review without a jury and by trial de novo,
6 except that if all parties, including the commissioner, so stipulate, the review shall
7 be confined to the record. Portions of the record may be introduced by stipulation
8 into evidence in a trial de novo as to those parties so stipulating.
9 (3) The filing of an appeal pursuant to this Section shall stay the application
10 of any rule, regulation, order, or other action of the commissioner to the appealing
11 party unless the court, after giving the party notice and an opportunity to be heard,
12 determines that a stay would be detrimental to the interest of policyholders,
13 shareholders, creditors, or the public.
14 H. The hearing appeal proceedings provided for under in Paragraph (E)(2)
15 or Subsection G of this Section shall be a confidential proceeding. confidential, and
16 all filings in the proceeding shall be sealed. At the conclusion of the hearing, appeal
17 proceedings, the commissioner shall enter an order, not inconsistent with any orders
18 issued pursuant to Subsection G of this Section, adopting the examination report as
19 filed or refiled, or with modification or corrections, and may order the company to
20 take any action the commissioner considers necessary and appropriate to cure any
21 violation of any law, regulation, or prior order of the commissioner.
22 * * *
23 §1984. Commissioner of insurance to conduct financial and market analysis of
24 insurers and regulated entities
25 * * *
26 G.(1) Any insurer or regulated entity against whom a fine has been levied
27 shall be given thirty days notice of such the action. Upon receipt of this notice, the
28 aggrieved insurer or regulated entity may apply for and shall be entitled to a hearing
29 pursuant to R.S. 22:2191 et seq. an appeal to the Nineteenth Judicial District Court.
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1 (2) The court shall conduct a review without a jury and by trial de novo,
2 except that if all parties, including the commissioner, so stipulate, the review shall
3 be confined to the record. Portions of the record may be introduced by stipulation
4 into evidence in a trial de novo as to those parties so stipulating.
5 (3) The filing of an appeal pursuant to this Section shall stay the application
6 of any rule, regulation, order, or other action of the commissioner to the appealing
7 party unless the court, after giving the party notice and an opportunity to be heard,
8 determines that a stay would be detrimental to the interest of policyholders,
9 shareholders, creditors, or the public.
10 (4) The appeal proceedings provided for pursuant to this Subsection shall be
11 confidential, and all filings in the proceeding shall be sealed.
12 * * *
13 §2191. Hearings
14 A. The division of administrative law shall hold a hearing in accordance with
15 the Administrative Procedure Act, R.S. 49:950 et seq., and shall hold a hearing under
16 either of the following circumstances:
17 * * *
18 (2) Upon written demand for a hearing made by any person aggrieved by any
19 act, order of the commissioner, or failure of the commissioner of insurance to act,
20 except where provisions of this Code require the demand be made to other agencies
21 or courts, if such failure is deemed an act under any provision of this Code, or by any
22 report, promulgation, or order of the commissioner of insurance other than an order
23 on a hearing of which such person was given actual notice or at which such person
24 appeared as a party, or order pursuant to the order on such hearing.
25 * * *
26 Section 2. This Act shall become effective on January 1, 2019.
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HB NO. 607
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)]
HB 607 Original 2018 Regular Session Seabaugh
Abstract: Provides for appellate review of certain administrative actions by the
commissioner of insurance in the 19
th
Judicial District Court.
Present law requires the commissioner of insurance to make an examination, at least once
every five years, of all insurers doing business in this state and at any other time when the
commissioner deems it necessary. Present law further authorizes the commissioner to make
an examination of any producer doing business in this state whenever he has received at least
three complaints within a 30-day period.
Proposed law retains proposed law.
Present law requires the commissioner of insurance, within 30 days of the end of the period
allowed for the receipt of written submissions or rebuttals in response to a filed examination
report, to fully consider and review the refiled report, together with any written submissions
or rebuttals and any relevant portions of the workpapers of the examiner and enter an order
to do either:
(1)Adopting the examination report as refiled or with modification or corrections.
(2)Rejecting the examination report and ordering a hearing for purposes of obtaining
additional documentation, data, information, and testimony.
Proposed law deletes the option to order an administrative hearing if the examination report
is rejected.
Present law authorizes a company, within 30 days of receipt of notification of the decision
of the commissioner adopting the examination report, to make written demand for an
administrative hearing. Present law further grants any insurer or regulated entity against
whom a fine has been levied the right to an administrative hearing.
Proposed law changes the hearing to an appeal to the 19th JDC and requires the court to
conduct a review without a jury and by trial de novo, except that if all parties, including the
commissioner, so stipulate, the review shall be confined to the record.
Proposed law provides that the filing of an appeal shall stay the application of any rule,
regulation, order, or other action of the commissioner to the appealing party unless the court,
after giving the party notice and an opportunity to be heard, determines that a stay would be
detrimental to the interest of policyholders, shareholders, creditors, or the public.
Present law provides that the administrative hearing shall be a confidential proceeding.
Proposed law provides that the appeal proceeding shall be confidential and all filings in the
proceeding shall be sealed.
Effective Jan. 1, 2019.
(Amends R.S. 22:1983(E)(2), (G), and (H), 1984(G), and 2191(A)(2))
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