ENROLLED
ACT No. 159
2022 Regular Session
HOUSE BILL NO. 529
BY REPRESENTATIVE BROWN
1 AN ACT
2 To amend and reenact R.S. 22:3, 1921(A), (C), and (D), 1922(A), 1926,
3 1928(A)(introductory paragraph), 1929(A), 2132(G)(2), 2161(J), 2171(L), R.S.
4 36:681(C), 683, 687, 689, and 691.1, to enact R.S. 36:681(D), 686(C)(3) and (4), and
5 694.1, and to repeal R.S. 36:686(D) and (E), relative to the organization of the
6 Department of Insurance; to provide for the offices within and officers for the
7 department; to provide for the administration of certain commissions within the
8 department; to provide for the chief deputy commissioner of the department; to
9 create the office of policy, innovation, and research; to provide the duties and
10 functions of the office and the deputy commissioner of policy, innovation, and
11 research; to make technical changes; to provide for an effective date; and to provide
12 for related matters.
13 Be it enacted by the Legislature of Louisiana:
14 Section 1. R.S. 22:3, 1921(A), (C), and (D), 1922(A), 1926, 1928(A)(introductory
15 paragraph), 1929(A), 2132(G)(2), 2161(J), and 2171(L) are hereby amended and reenacted
16 to read as follows:
17 §3. Composition of Department of Insurance
18 The Department of Insurance shall be comprised of the office of the
19 commissioner, the office of management and finance, the office of property and
20 casualty, the office of licensing, the office of financial solvency, the office of
21 consumer advocacy and diversity, the office of health, life and annuity, the office of
22 consumer services, the division office of insurance fraud, the division office of legal
Page 1 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 529 ENROLLED
1 services, the office of policy, innovation, and research, the division of public affairs,
2 the division of diversity and opportunity and any other office or division that may
3 be included by the Executive Reorganization Act or other law. Each office or
4 division shall be administered as prescribed by Titles 36 and 39 of the Louisiana
5 Revised Statutes of 1950.
6 * * *
7 §1921. Purpose and powers
8 A. The purpose of this Part is to create within the Department of Insurance
9 a division an office of insurance fraud. This division office shall be charged with the
10 responsibility, when directed by the commissioner of insurance, to conduct
11 investigations and background criminal checks on each applicant for a license or
12 certificate of authority to transact a business of insurance. The division office of
13 insurance fraud shall be governed by the provisions of this Part including the powers
14 and duties relating to the investigation and prevention of administrative or civil
15 violations of the insurance laws of this state.
16 * * *
17 C. If the division office has reason to believe, whether acting on its own
18 initiative or as a result of complaints, that a person has engaged in, or is engaging in,
19 an act or practice that violates this Part or any other provision of this Code, it may
20 examine and investigate the affairs of such person and may administer oaths and
21 affirmations, serve subpoenas ordering the attendance of witnesses, and collect
22 evidence.
23 D. If during the course of investigation, the division office of insurance fraud
24 determines that there may be a violation of criminal law, the division office shall turn
25 the matter over to the Department of Justice; the Department of Public Safety and
26 Corrections, public safety services, office of state police; and any other appropriate
27 law enforcement or prosecutorial agency, for further investigation, enforcement, or
28 prosecution.
29 * * *
Page 2 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 529 ENROLLED
1 §1922. Additional powers and duties
2 A. The division office of insurance fraud shall have access to computer
3 systems, information maintained for the use of law enforcement personnel, any
4 information contained in the criminal history record and identification file of the
5 Louisiana Bureau of Criminal Identification and Information, and direct and timely
6 access to information compiled by the Federal Bureau of Investigation, as contained
7 in the National Crime Information Center, for the purposes of carrying out its
8 responsibilities under this Part.
9 * * *
10 §1926. Duties of companies and others
11 A. Any person, company, or other legal entity including but not limited to
12 those engaged in the business of insurance, including producers and adjusters, that
13 suspects that a fraudulent insurance act will be, is being, or has been committed
14 shall, within sixty days of the receipt of such notice, send to the division office of
15 insurance fraud, on a form prescribed by the commissioner, the information
16 requested and such additional information relative to the insurance act and the parties
17 claiming loss or damages because of an occurrence or accident as the commissioner
18 may require. The division office of insurance fraud shall review such reports and
19 select such insurance acts as, in its judgment, may require further investigation. It
20 shall then cause an independent examination of the facts surrounding such insurance
21 act to be made to determine the extent, if any, to which fraud, deceit, or intentional
22 misrepresentation of any kind exists in the submission of the insurance act.
23 B. The division office of insurance fraud shall report any alleged violations
24 of law which its investigations disclose to the appropriate licensing agency, the
25 insurance fraud investigation unit of the office of state police, the insurance fraud
26 support unit of the Department of Justice, and the prosecutive authority having
27 jurisdiction with respect to any such violation. These units shall work jointly on
28 criminal referrals.
29 * * *
Page 3 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 529 ENROLLED
1 §1928. Civil immunity
2 A. No insurer, employees, or agents of any insurer, or any other person
3 acting without malice, fraudulent intent, or bad faith, shall be subject to civil liability
4 for libel, slander, or any other relevant tort, and no civil cause of action of any nature
5 shall exist against such person or entity by virtue of the filing of reports or furnishing
6 other information, either orally or in writing, concerning suspected, anticipated, or
7 completed fraudulent insurance acts when such reports or information are required
8 by this Part or required by the division office of insurance fraud as a result of the
9 authority herein granted pursuant to this Part or when such reports or information are
10 provided to or received from:
11 * * *
12 §1929. Confidentiality of criminal background checks; civil penalties
13 A. Notwithstanding any other provision of law to the contrary, criminal
14 background information in the possession of the division office of insurance fraud
15 of the Department of Insurance shall be confidential and shall not be disclosed to
16 others outside of the division office of insurance fraud except as necessary for action
17 on the application of the applicant.
18 * * *
19 §2132. Authority; creation, powers
20 * * *
21 G.
22 * * *
23 (2) A director and assistant director shall be selected by the board and serve
24 at the pleasure of the The commissioner of insurance, shall be considered public
25 employees, and shall operate the daily affairs of the authority as specified herein in
26 this Section and by the board.
27 * * *
Page 4 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 529 ENROLLED
1 §2161. Louisiana Health Care Commission; creation
2 * * *
3 J. The commissioner may employ such persons, including experts, as
4 necessary to carry out the provisions of this Part and may fix the compensation of
5 technical, professional, and clerical employees as needed for the commission to
6 complete its work. Any such employee shall be compensated from the budget of the
7 commissioner. The commission shall employ a director and an assistant director,
8 who shall be appointed by the commission subject to the approval of the
9 commissioner of insurance. The director and assistant director shall be in the
10 unclassified service. All employees of the commission shall be under the direction
11 and supervision of the commissioner of insurance shall conduct the daily affairs of
12 the commission as specified in this Section.
13 §2171. Louisiana Property and Casualty Insurance Commission
14 * * *
15 L. The commissioner of insurance shall appoint a director and an assistant
16 director with the consent of the Senate who shall serve at the pleasure of the
17 commissioner. The commissioner of insurance may also employ such persons,
18 including two unclassified employees, as necessary to carry out the provisions of this
19 Section and may establish the compensation of technical, professional, and clerical
20 employees as needed for the commission to accomplish its work. Any such
21 employee shall be compensated from the budget of the commissioner. All of the
22 employees of the commission shall be under the direction and supervision of the
23 commissioner of insurance shall conduct the daily affairs of the commission as
24 specified in this Section.
25 Section 2. R.S. 36:681(C), 683, 687, 689, and 691.1 are hereby amended and
26 reenacted and R.S. 36:681(D), 686(C)(3) and (4), and 694.1 are hereby enacted to read as
27 follows:
28 §681. Department of Insurance; creation; domicile; purposes and functions
29 * * *
Page 5 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 529 ENROLLED
1 C.(1) The officers of the department shall be the commissioner of insurance;
2 the chief deputy commissioner, if one is appointed; the deputy commissioner for
3 management and finance; the deputy commissioner for policy, innovation, and
4 research; the deputy commissioner for property and casualty; the deputy
5 commissioner for insurance fraud; the deputy commissioner for licensing; the deputy
6 commissioner for financial solvency; the deputy commissioner for health, life, and
7 annuity; the deputy commissioner for public affairs; the deputy commissioner for
8 consumer services; the deputy commissioner for consumer advocacy and diversity;
9 the assistant commissioner of diversity and opportunity; and the executive counsel.
10 (2) With the exception of the commissioner of insurance, each shall be
11 appointed by the commissioner of insurance with the consent of the Senate and shall
12 serve at the pleasure of the commissioner of insurance, at a salary fixed by the
13 commissioner, which salary shall not exceed the amount approved for such position
14 by the legislature while in session. Their duties and functions shall be determined
15 and assigned by the commissioner of insurance and as provided in this Title. When
16 a chief deputy commissioner is appointed, he shall be the first assistant to the
17 commissioner appointed pursuant to Article IV, Section 13 of the Constitution of
18 Louisiana.
19 (3) If a chief deputy commissioner is appointed, he shall be the first assistant
20 to the commissioner of insurance appointed pursuant to Article IV, Section 13 of the
21 Constitution of Louisiana. If a chief deputy commissioner is not appointed, the
22 commissioner of insurance shall appoint his first assistant to one of the offices of
23 deputy commissioner.
24 D. The Department of Insurance shall be composed of the executive office
25 of the commissioner; the office of management and finance; the office of policy,
26 innovation, and research; the office of property and casualty; the office of insurance
27 fraud; the office licensing; the office of financial solvency; the office of health, life,
28 and annuity; the division of public affairs; the office of consumer services; the office
Page 6 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 529 ENROLLED
1 of consumer advocacy and diversity; the division of diversity and opportunity; and
2 the office of legal services.
3 * * *
4 §683. Chief deputy commissioner
5 There shall may be a chief deputy commissioner of the department, who shall
6 be appointed by the commissioner of insurance with consent of the Senate and who
7 shall serve at the pleasure of the commissioner of insurance in the office of the
8 commissioner, at a salary fixed by the commissioner of insurance which salary shall
9 not exceed the amount approved for such position by the legislature while in session.
10 The chief deputy shall be the first assistant of the commissioner of insurance
11 appointed pursuant to Article IV, Section 13 of the Constitution of Louisiana. The
12 duties and functions of the chief deputy commissioner shall be determined and
13 assigned by the commissioner of insurance. He shall serve as acting commissioner
14 of insurance in the absence of the commissioner as provided by law.
15 * * *
16 §686. Transfer of agencies to the Department of Insurance
17 * * *
18 C. The following agencies are transferred to the Department of Insurance
19 and shall exercise their powers, duties, functions, and responsibilities in the manner
20 provided in R.S. 36:802:
21 * * *
22 (3) The Louisiana Health Care Commission (R.S. 22:2161).
23 (4) The Board of Directors of the Louisiana Automobile Theft and Insurance
24 Fraud Prevention Authority (R.S. 22:2131 et seq.).
25 * * *
26 §687. Deputy commissioner for consumer services; functions; division office of
27 consumer services
28 There is hereby created a division an office of consumer services under the
29 direction of the deputy commissioner for consumer services. The duties and
30 functions of the division office and the deputy commissioner shall be the receipt and
Page 7 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 529 ENROLLED
1 processing of consumer complaints, market conduct analysis and examination, and
2 such additional duties and functions as are assigned by the commissioner of
3 insurance.
4 * * *
5 §689. Division Office of legal services; functions
6 There is hereby created a division an office of legal services in the
7 department of insurance. Such division shall be Department of Insurance under the
8 direction of the executive counsel. The duties and functions of the division office
9 of legal services and the executive counsel for the division of legal services shall be
10 as provided in this Title and as assigned by the commissioner of insurance.
11 * * *
12 §691.1. Division Office of insurance fraud
13 There is hereby created a division an office of insurance fraud in the
14 Department of Insurance that shall be under the direction of the deputy commissioner
15 for insurance fraud. The duties and functions of the division office of insurance
16 fraud and the deputy commissioner for insurance fraud shall be the investigation of
17 alleged administrative or civil fraudulent insurance acts, other administrative or civil
18 violations of the insurance laws of this state, executive security, and such additional
19 duties and functions as assigned by the commissioner of insurance.
20 * * *
21 §694.1. Office of policy, innovation, and research; functions
22 A. There is hereby created an office of policy, innovation, and research in
23 the Department of Insurance under the direction of the deputy commissioner for
24 policy, innovation, and research.
25 B. The duties and functions of the office of policy, innovation, and research
26 and the deputy commissioner for policy, innovation, and research shall be the
27 following:
28 (1) Research and development of policy proposals relative to the following:
29 (a) Regulation of insurance.
30 (b) Prevention and detection of insurance fraud.
Page 8 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 529 ENROLLED
1 (c) Innovation in insurance products and technology.
2 (d) Availability and affordability of insurance.
3 (e) Healthcare and health insurance, including long-term care.
4 (f) Property and casualty insurance, including issues related to disasters,
5 building codes, highway safety, and the adjustment and payment of claims.
6 (g) Life insurance and annuities.
7 (h) Development and promotion of the insurance industry in this state.
8 (2) Development and preparation of proposals for legislation, rules and
9 regulations, and other administrative actions.
10 (3) Participation in and liaison with the following organizations of which the
11 commissioner of insurance is the representative of this state:
12 (a) The National Association of Insurance Commissioners (NAIC).
13 (b) The Interstate Insurance Product Regulation Commission (IIPRC).
14 (c) The International Association of Insurance Supervisors (IAIS).
15 (4) Monitoring the activities of the following, relative to insurance
16 regulation:
17 (a) Congress and federal agencies.
18 (b) The National Council of Insurance Legislators (NCOIL).
19 (c) The National Conference of State Legislatures (NCSL).
20 (d) Other organizations that affect the regulation of insurance.
21 (5) Other duties and functions assigned by the commissioner of insurance.
22 C. In addition to the deputy commissioner of policy, innovation, and
23 research, the commissioner of insurance may also employ such persons, including
24 four unclassified employees, as necessary to carry out the provisions of this Section
25 and to provide necessary staff support for the following entities:
26 (1) The Louisiana Health Care Commission.
27 (2) The Louisiana Automobile Theft and Insurance Fraud Prevention
28 Authority.
29 (3) The Louisiana Property and Casualty Insurance Commission.
30 Section 3. R.S. 36:686(D) and (E) are hereby repealed in their entirety.
Page 9 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HB NO. 529 ENROLLED
1 Section 4. This Act shall become effective upon signature by the governor or, if not
2 signed by the governor, upon expiration of the time for bills to become law without signature
3 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
4 vetoed by the governor and subsequently approved by the legislature, this Act shall become
5 effective on the day following such approval.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
Page 10 of 10
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.