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 Engrossed 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 repeals the authorization to order an administrative hearing if the examination report
is rejected buts adds an option for the commissioner to order an investigatory hearing for the
purposes of obtaining additional information and provides for the hearing procedure.
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)(introductory paragraph) and (2), (G), and (H), 1984(G), and 2191(A)(2);
Adds R.S. 22:1983(E)(3))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the original bill:
1. Authorize the commissioner to order an investigatory hearing for the purposes of
obtaining additional information.
2. Provide for the hearing procedure.
3. Make technical changes.