SLS 20RS-232 ORIGINAL
2020 Regular Session
SENATE BILL NO. 85
BY SENATOR CONNICK
SELF INSURANCE. Provides bad-faith penalties for certain self insurers. (8/1/20)
1 AN ACT
2 To amend and reenact R.S. 22:1962(C) and to enact R.S. 32:1042(E), relative to
3 self-insurers; to provide for application of unfair trade practice prohibitions to
4 self-insurers; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 22:1962(C) is hereby amended and reenacted to read as follows:
7 §1962. Definitions
8 When used in this Part:
9 * * *
10 C. "Insurer" means any person, reciprocal exchange, interinsurer, Lloyds
11 insurer, fraternal benefit society, industrial and burial insurer, or any insurer that
12 markets under the Home Service Marketing distribution method and issues a
13 majority of its policies on a weekly or monthly basis, or any other legal entity
14 engaged in the business of insurance, including insurance producers. "Insurer" shall
15 also mean medical service plans, hospital service plans, health maintenance
16 organizations, and prepaid limited health care service plans. "Insurer" shall also
17 mean any person or legal entity issued a certificate of self-insurance pursuant
Page 1 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 85
SLS 20RS-232 ORIGINAL
1 to R.S. 32:1042. For the purposes of this Part, these foregoing entities shall be
2 deemed to be engaged in the business of insurance.
3 * * *
4 Section 2. R.S. 32:1042(E) is hereby enacted to read as follows:
5 §1042. Self-insurers
6 * * *
7 E. Any person or any legal entity issued a certificate of self-insurance
8 pursuant to this Section shall be subject to the provisions of Part IV of Chapter
9 7 of the Insurance Code.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by LG Sullivan.
DIGEST
SB 85 Original 2020 Regular Session Connick
Present law, relative to traffic and motor vehicles allows any person in whose name more
than 25 motor vehicles are registered or who owns property in Louisiana assessed in his
name having a value of $100,000 or more to qualify as a self-insurer by obtaining a
certificate of self-insurance issued by the assistant secretary of the office of motor vehicles.
Present law prohibits insurers from engaging in methods, practices, and acts declared to be
unfair or deceptive under present law.
Proposed law retains present law and provides that the prohibitions on unfair or deceptive
trade practices applies to anyone with a certificate of self-insurance.
Effective August 1, 2020.
(Amends R.S. 22:1962(C); adds R.S. 32:1042(E))
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.