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 521 Original 2022 Regular Session Huval
Abstract: With respect to insurance, provides for catastrophe response plans.
Present law provides that every insurer writing any form of commercial or residential property
insurance, automobile insurance, marine, or inland marine insurance or writing life or health and
accident insurance shall maintain a catastrophe response plan that describes how the insurer will
respond to a catastrophe affecting its policyholders.
Present law provides that each health maintenance organization, managing general agent, and third-
party administrator shall maintain a catastrophe response plan that describes how it will respond to
a catastrophe affecting its business operations.
Proposed law repeals present law and provides that every insurer, as defined in R.S. 22:46(10), and
every health maintenance organization operating in this state shall maintain a catastrophe response
plan that describes how the insurer will respond to a catastrophe affecting its business operations and
policyholders or subscribers.
Proposed law provides that every third-party administrator shall maintain a catastrophe response plan
that describes how it will respond to a catastrophe affecting its business operations.
Proposed law provides that catastrophe response plans required pursuant to proposed law shall
include all of the following:
(1)Emergency contact information of key or essential personnel.
(2)Alternative office locations or work sites.
(3)Procedures to address the back up, storage, retrieval, and security of records and data, the
handling and processing of claims, whether arising prior to or subsequent to the catastrophe,
the training of staff, communication with policyholders and subscribers, and the distribution
of catastrophe claims information.
(4)Considering the scale of the catastrophe and the number of policies issued in the affected
area, the methodology for determining the number of field adjusters, desk adjusters, and
other administrative personnel necessary to respond to the catastrophe, the provision of
sufficient claims and administrative personnel to service policyholder and subscriber needs in a timely manner, and the provision of logistical support necessary for claims and
administrative personnel in the affected area.
(5)The process whereby a policyholder can file a claim.
(6)The process whereby a policyholder or agent can contact the appropriate claims personnel,
regarding a claim.
(7)Any other information required by the commissioner.
Present law provides that during an examination or at such other time as the commissioner deems
appropriate, he shall review the catastrophe response plan of each insurer, health maintenance
organization, managing general agent, and third-party administrator.
Proposed law repeals present law and provides that every insurer, health maintenance organization,
and third-party administrator shall file a catastrophe response plan that conforms to the provisions
proposed law with the commissioner no later than June 1, 2023, and shall file a revised plan when
any changes are made to the plan.
Proposed law provides that the commissioner shall review each catastrophe response plan when filed
to ensure that it meets the requirements of proposed law and any applicable rules and regulations.
Present law provides that catastrophe response plans shall be deemed to be confidential, proprietary
information subject to the protections of the Uniform Trade Secrets Act, shall not be subject to the
public records disclosures, and shall not be made public by the commissioner.
Proposed law retains present law.
Proposed law provides that the commissioner may promulgate rules and regulations setting forth the
minimum standards for catastrophe response plans, that include the requirements in proposed law.
Proposed law provides that if the commissioner finds that a violation of proposed law has occurred,
the commissioner may take necessary and appropriate enforcement and regulatory action, including
action pursuant to present law, R.S. 22:18.
(Amends R.S. 22:572)