ENROLLED
2018 Regular Session
HOUSE BILL NO. 607
BY REPRESENTATIVE SEABAUGH
AN ACT
To amend and reenact R.S. 22:1983(E)(introductory paragraph) and (2), (G), and (H),
1984(G), and 2191(A)(2) and to enact R.S. 22:1983(E)(3), relative to examinations
and investigations by the commissioner of insurance; to authorize an investigatory
hearing for the purposes of obtaining additional information; to provide for appellate
review of examination reports; to provide for appellate review of certain fines; to
provide for an effective date; and to provide for related matters.
Be it enacted by the Legislature of Louisiana:
Section 1. R.S. 22:1983(E)(introductory paragraph) and (2), (G), and (H), 1984(G),
and 2191(A)(2) are hereby amended and reenacted and R.S. 22:1983(E)(3) is hereby enacted
to read as follows:
§1983. Examination reports
* * *
E. Within thirty days of the end of the period allowed for the receipt of
written submissions or rebuttals, as provided for in Subsections B and D of this
Section, the commissioner shall 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 either doing one of the following:
* * *
(2) Rejecting the examination report and ordering a hearing pursuant to the
provisions of Chapter l2 of this Title, for purposes of obtaining additional
documentation, data, information, and testimony.
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(3) Ordering, either on the commissioner's own authority or upon the written
request of the company, an investigatory hearing for the purposes of obtaining
additional documentation, data, information, and testimony. The hearing shall be
held in accordance with all of the following:
(a) The hearing shall be conducted by the commissioner or the
commissioner's authorized representative and shall be conducted as a nonadversarial
confidential investigatory proceeding for the resolution of any inconsistencies,
discrepancies, or disputed issues apparent upon the face of the filed examination
report or raised by or as a result of the commissioner's review of relevant workpapers
or by the written submission or rebuttal of the company.
(b) The commissioner shall not appoint an examiner as an authorized
representative to conduct the hearing.
(c)(i) The hearing shall proceed expeditiously with discovery by both parties.
Discovery by the company shall be limited to the examiner's workpapers that tend
to substantiate any assertions set forth in any written submission or rebuttal.
(ii) The commissioner or the commissioner's authorized representative may
issue subpoenas for the attendance of any witnesses or the production of any
documents deemed relevant to the investigation whether under the control of the
department, the company, or other persons. The documents produced shall be
included in the record and testimony taken by the commissioner or the
commissioner's authorized representative shall be under oath and preserved for the
record.
(iii) Nothing contained in this Paragraph shall require the department,
pursuant to the hearing or as part of discovery, to disclose information or records that
would indicate or show the existence or content of any investigation or activity of a
criminal justice agency.
(d) The hearing shall proceed with the commissioner or the commissioner's
authorized representative posing questions to the persons subpoenaed. Thereafter,
the company and the department may present testimony relevant to the investigation.
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The company and the department shall be permitted to make closing statements and
may be represented by counsel of their choice.
(e) Within twenty days of the conclusion of the hearing, the commissioner
shall enter an order pursuant to Paragraph (C)(1) or (E)(1) of this Section.
* * *
G.(1) Within thirty days of receipt of notification of the order of the
commissioner to the company made pursuant to Subsection F of this Section, the
company may make written demand for a hearing pursuant to the provisions of
Chapter 12 of this Title. an appeal to the Nineteenth Judicial District Court.
(2) The court shall 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. Portions of the record may be introduced by stipulation
into evidence in a trial de novo as to those parties so stipulating.
(3) The filing of an appeal pursuant to this Section 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.
H. The hearing appeal proceedings provided for under Paragraph (E)(2) or
in Subsection G of this Section shall be a confidential proceeding. confidential, and
all filings in the proceeding shall be sealed. At the conclusion of the hearing, appeal
proceedings, the commissioner shall enter an order, not inconsistent with any orders
issued pursuant to Subsection G of this Section, adopting the examination report as
filed or refiled, or with modification or corrections, and may order the company to
take any action the commissioner considers necessary and appropriate to cure any
violation of any law, regulation, or prior order of the commissioner.
* * *
§1984. Commissioner of insurance to conduct financial and market analysis of
insurers and regulated entities
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G.(1) Any insurer or regulated entity against whom a fine has been levied
shall be given thirty days notice of such the action. Upon receipt of this notice, the
aggrieved insurer or regulated entity may apply for and shall be entitled to a hearing
pursuant to R.S. 22:2191 et seq. an appeal to the Nineteenth Judicial District Court.
(2) The court shall 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. Portions of the record may be introduced by stipulation
into evidence in a trial de novo as to those parties so stipulating.
(3) The filing of an appeal pursuant to this Section 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.
(4) The appeal proceedings provided for pursuant to this Subsection shall be
confidential, and all filings in the proceeding shall be sealed.
* * *
§2191. Hearings
A. The division of administrative law shall hold a hearing in accordance with
the Administrative Procedure Act, R.S. 49:950 et seq., and shall hold a hearing under
either of the following circumstances:
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(2) Upon written demand for a hearing made by any person aggrieved by any
act, order of the commissioner, or failure of the commissioner of insurance to act,
except where provisions of this Code require the demand be made to other agencies
or courts, if such failure is deemed an act under any provision of this Code, or by any
report, promulgation, or order of the commissioner of insurance other than an order
on a hearing of which such person was given actual notice or at which such person
appeared as a party, or order pursuant to the order on such hearing.
* * *
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Section 2. This Act shall become effective on January 1, 2019.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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