HLS 23RS-793 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 383
BY REPRESENTATIVE AMEDEE
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
INSURERS/GUARANTY ASSNS: Requires each insurer subject to the Louisiana
Insurance Guaranty Association Law to provide for a data transfer plan and file such
plan with the commissioner of insurance
1 AN ACT
2To amend and reenact R.S. 44:4.1(B)(11) and enact R.S. 22:572.2, relative to insurance; to
3 require certain insurers to provide for a data transfer plan; to provide for the
4 minimum content of the plan; to require the filing of the plan with the commissioner
5 of insurance under certain circumstances; to provide for the powers and duties of the
6 commissioner relative thereto; to provide relative to the nature of data transfer plans;
7 to exempt data transfer plans from the Public Records Law; to provide for an
8 effective date; and to provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 22:572.2 is hereby enacted to read as follows:
11 §572.2. Louisiana Property and Casualty Guaranty Fund Data Transfer Plan
12 A. Each insurer that is subject to the Louisiana Insurance Guaranty
13 Association Law shall prepare, implement, and maintain a data transfer plan. Upon
14 the occurrence of a company-action level event, as defined in R.S. 22:613, the
15 insurer shall file the data transfer plan with the commissioner.
16 B.(1) The data transfer plan required by Subsection A of this Section shall
17 outline specific procedures, actions, and safeguards that at minimum include all of
18 the following:
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HB NO. 383
1 (a) The manner, methods, and formats in which the insurer maintains and
2 preserves its claims and underwriting records.
3 (b) The process by which the insurer will transfer all of its claims and
4 underwriting records to the Louisiana Insurance Guaranty Association if an order of
5 rehabilitation or liquidation is issued pursuant to R.S. 22:2008.
6 (c) Any other information deemed necessary by the commissioner.
7 (2) If the insurer utilizes a third-party vendor to maintain and preserve its
8 claims and underwriting records, the insurer shall include in its data transfer plan the
9 process by which the third-party vendor will provide the insurer's claims and
10 underwriting records without delay if an order of rehabilitation or liquidation is
11 issued pursuant to R.S. 22:2008
12 C. The commissioner shall review each data transfer plan submitted pursuant
13 to Subsection A of this Section to determine compliance with the requirements of
14 this Section and shall consult with the Louisiana Insurance Guaranty Association to
15 confirm that the data transfer plan will integrate with the Louisiana Insurance
16 Guaranty Association's manner and means of maintaining records received from
17 insurers that are subject to orders of rehabilitation or liquidation.
18 D. The commissioner may:
19 (1) Investigate and examine the records and operations of insurers to
20 determine if each insurer has implemented and complied with the data transfer plan
21 requirements of this Section.
22 (2) Direct an insurer to test the processes set forth in its data transfer plan to
23 ensure that the data can be effectively transferred.
24 (3) Direct an insurer to modify its data transfer plan to comply with the
25 requirements of this Section.
26 (4) Require an insurer to prefund the services required to initiate a data
27 transfer.
28 (5) Require an insurer to take action to remedy substantial noncompliance
29 with the requirements of this Section regarding data transfer plans.
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HB NO. 383
1 E. An insurer that remains in a company-action level event, as defined in
2 R.S. 22:613, shall update and file its data transfer plan with the commissioner at
3 intervals the commissioner deems appropriate.
4 F.(1) Data transfer plans shall not be public records or subject to inspection,
5 examination, copying, or reproduction pursuant to the Public Records Law.
6 (2) Each data transfer plan is a proprietary and confidential business record
7 and shall not be subject to production, including subpoena.
8 Section 2. R.S. 44:4.1(B)(11) is hereby amended and reenacted to read as follows:
9 §4.1. Exceptions
10 * * *
11 B. The legislature further recognizes that there exist exceptions, exemptions,
12 and limitations to the laws pertaining to public records throughout the revised
13 statutes and codes of this state. Therefore, the following exceptions, exemptions, and
14 limitations are hereby continued in effect by incorporation into this Chapter by
15 citation:
16 * * *
17 (11) R.S. 22:2, 14, 31, 42.1, 88, 244, 263, 265, 461, 550.7, 571, 572, 572.1,
18 572.2, 574, 601.3, 618, 639, 691.4, 691.5, 691.6, 691.7, 691.8, 691.9, 691.9.1,
19 691.10, 691.38, 691.56, 732, 752, 753, 771, 834, 972(D), 976, 1008, 1019.2, 1203,
20 1460, 1464, 1466, 1488, 1546, 1559, 1566(D), 1644, 1656, 1657.1, 1660.7, 1723,
21 1796, 1801, 1808.3, 1927, 1929, 1983, 1984, 2036, 2045, 2056, 2085, 2091, 2293,
22 2303, 2508
23 * * *
24 Section 3. This Act shall become effective upon signature by the governor or, if not
25signed by the governor, upon expiration of the time for bills to become law without signature
26by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
27vetoed by the governor and subsequently approved by the legislature, this Act shall become
28effective on the day following such approval.
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HB NO. 383
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 383 Original 2023 Regular Session Amedee
Abstract: Requires each insurer subject to the La. Insurance Guaranty Assoc. Law to
prepare a data transfer plan in the event an order of rehabilitation or liquidation is
issued, provides for the review and authority of the commissioner relative to such
plans, and exempts the plans from production and the Public Records Law.
Proposed law requires each insurer subject to present law (La. Insurance Guaranty Assoc.
Law) to prepare, implement, and maintain a data transfer plan. Requires the insurer to file
the plan with the commissioner of insurance upon the occurrence of a company-action level
event as defined in present law (R.S. 22:613).
Proposed law requires a data transfer plan to include the manner, methods, and formats in
which the insurer maintains and preserves its claims and underwriting records; the process
by which the insurer will transfer its records to the La. Insurance Guaranty Assoc. (LIDA)
if an order of rehabilitation or liquidation is issued pursuant present law( R.S. 22:2008); and
any other information deemed necessary by the commissioner. Provides that if the insurer
utilizes a third party to maintain its records, it shall include in its plan the process by which
the third party will provide the insurer's claims and underwriting records without delay.
Proposed law requires the commissioner to review each data transfer plan to determine
compliance with proposed law and to consult with LIDA to confirm that the data transfer
plan will integrate with its manner and means of maintaining records from insurers that are
subject to orders of rehabilitation or liquidation. Provides that the commissioner may
examine the records and operations of insurers to determine compliance with proposed law;
direct an insurer to test its data transfer plan; direct an insurer to modify its data transfer
plan; require an insurer to prefund the services required to initiate a data transfer; and require
an insurer to take action to remedy substantial noncompliance with proposed law.
Proposed law requires an insurer that remains in a company-action level event to update and
file its data transfer plan with the commissioner at intervals the commissioner deems
appropriate.
Proposed law specifies that data transfer plans shall not be public records subject to
inspection, examination, copying, or reproduction pursuant to the Public Records Law and
that each data transfer plan is a proprietary and confidential business record and shall not be
subject to production, including subpoena.
Proposed law provides an exception in the Public Records Law for data transfer plans.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 44:4.1(B)(11); Adds R.S. 22:572.2)
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