HLS 23RS-793 REENGROSSED
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 to enact R.S. 22:572.2, relative to insurance;
3 to 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 and information produced pursuant to a data transfer
8 plan from the Public Records Law; to provide for an effective date; and to provide
9 for related matters.
10Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 22:572.2 is hereby enacted to read as follows:
12 §572.2. Louisiana Property and Casualty Guaranty Fund Data Transfer Plan
13 A. Each insurer that is subject to the Louisiana Insurance Guaranty
14 Association Law shall prepare, implement, and maintain a data transfer plan. Upon
15 the occurrence of a company-action level event, as defined in R.S. 22:613, the
16 insurer shall file the data transfer plan with the commissioner.
17 B.(1) The data transfer plan required by Subsection A of this Section shall
18 outline specific procedures, actions, and safeguards that at minimum include all of
19 the following:
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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 to the Louisiana Insurance Guaranty Association
11 if an order of rehabilitation or liquidation is 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 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 do all of the following:
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 (6) Waive compliance with the requirements of this Section upon an insurer's
2 written request that establishes that the issues giving rise to a company-action level
3 event will be resolved and with the concurrence of the Louisiana Insurance Guaranty
4 Association.
5 E. An insurer that remains in a company-action level event, as defined in
6 R.S. 22:613, shall update and file its data transfer plan with the commissioner at
7 intervals the commissioner deems appropriate.
8 F.(1) Data transfer plans and information produced to the commissioner
9 pursuant to data transfer plans shall not be public records or subject to inspection,
10 examination, copying, or reproduction pursuant to the Public Records Law.
11 (2) Each data transfer plan is a proprietary and confidential business record
12 and shall not be subject to production, including subpoena. The data transfer plan
13 and any information produced to the commissioner pursuant to a data transfer plan
14 is subject to the provisions of R.S. 22:1983(J).
15 (3) The commissioner shall provide the data transfer plan and any
16 information used to test the processes in the plan to the Louisiana Insurance
17 Guaranty Association or any other guaranty association if, prior to the guaranty
18 association receiving the information, the commissioner and the guaranty association
19 agree, in writing, to hold that information with the same confidential treatment
20 required of the commissioner by R.S. 22:1983(J), unless the insurer grants prior
21 written consent to share the information with a guaranty association.
22 Section 2. R.S. 44:4.1(B)(11) is hereby amended and reenacted to read as follows:
23 §4.1. Exceptions
24 * * *
25 B. The legislature further recognizes that there exist exceptions, exemptions,
26 and limitations to the laws pertaining to public records throughout the revised
27 statutes and codes of this state. Therefore, the following exceptions, exemptions, and
28 limitations are hereby continued in effect by incorporation into this Chapter by
29 citation:
30 * * *
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1 (11) R.S. 22:2, 14, 31, 42.1, 88, 244, 263, 265, 461, 550.7, 571, 572, 572.1,
2 572.2, 574, 601.3, 618, 639, 691.4, 691.5, 691.6, 691.7, 691.8, 691.9, 691.9.1,
3 691.10, 691.38, 691.56, 732, 752, 753, 771, 834, 972(D), 976, 1008, 1019.2, 1203,
4 1460, 1464, 1466, 1488, 1546, 1559, 1566(D), 1644, 1656, 1657.1, 1660.7, 1723,
5 1796, 1801, 1808.3, 1927, 1929, 1983, 1984, 2036, 2045, 2056, 2085, 2091, 2293,
6 2303, 2508
7 * * *
8 Section 3. This Act shall become effective upon signature by the governor or, if not
9signed by the governor, upon expiration of the time for bills to become law without signature
10by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
11vetoed by the governor and subsequently approved by the legislature, this Act shall become
12effective on the day following such approval.
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 Reengrossed 2023 Regular Session Amedee
Abstract: Requires insurers 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 of insurance relative to
such plans, and exempts the plans from production and the Public Records Law.
Proposed law requires each insurer subject to the La. Insurance Guaranty Assoc. Law (R.S.
22:2051 et seq.) to prepare, implement, and maintain a data transfer plan. Requires the
insurer to file the plan with the commissioner 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. (LIGA)
if an order of rehabilitation or liquidation is issued pursuant to present law (R.S. 22:2008);
and any other information deemed necessary by the commissioner.
Proposed law provides that if the insurer utilizes a third party to maintain its records, the
insurer is required to include in its plan the process by which the third party will provide the
insurer's claims and underwriting records to LIGA without delay.
Proposed law requires the commissioner to review each data transfer plan to determine
compliance with proposed law and to consult with LIGA 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.
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HB NO. 383
Proposed law authorizes the commissioner to examine the records and operations of insurers
to determine compliance with proposed law; direct an insurer to test and modify its data
transfer plan; require an insurer to prefund the services required to initiate a data transfer;
require an insurer to take action to remedy substantial noncompliance with proposed law;
and waive compliance with proposed law upon the insurer's written request that establishes
that the issues causing a company-action level event will be resolved and with the
concurrence of LIGA.
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 subjects data transfer plans to the commissioner's confidentiality provisions
in present law (R.S. 22:1983(J)). Requires an insurer to submit a data transfer plan and any
related information used to test the processes in the plan to LIGA or any other guaranty
association if, prior to the guaranty association receiving the information, the parties agree,
in writing, to treat the information received as confidential, unless the insurer grants prior
written consent to share the information with a guaranty association.
Proposed law specifies that data transfer plans and information produced to the
commissioner pursuant to data transfer plans are not subject to public records inspection,
examination, copying, or reproduction pursuant to the Public Records Law and that each
data transfer plan is a proprietary, confidential business record and not subject to production,
including subpoena. Proposed law provides an exception in the Public Records Law for data
transfer plans and information produced to the commissioner pursuant to 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)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Insurance to the
original bill:
1. Authorize the commissioner to waive compliance with proposed law upon an
insurer's written request that establishes that the issues causing a company-action
level event will be resolved and with the concurrence of LIGA.
2. Subject a data transfer plan and related information produced to the
commissioner to the commissioner's requirements of confidentiality in present
law (R.S. 22:1983(J)).
3. Require the commissioner to provide the data transfer plan and related
information used to test the processes to LIGA or any other guaranty association
if, prior to the guaranty association receiving the information, the commissioner
and the guaranty association agree, in writing, to hold that information with the
same confidential treatment required of the commissioner in present law (R.S.
22:1983(J)), unless the insurer grants prior written consent to share the
information with a guaranty association.
4. Make technical changes.
The Committee Amendments Proposed by House Committee on House and
Governmental Affairs to the engrossed bill:
1. Specify that LIGA is the recipient of the insurer's claims and underwriting
records transferred from an insurer's third-party vendor.
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2. Include information produced to the commissioner pursuant to a data transfer
plan in the exception from the Public Records Law.
3. Clarify that among the information provided by the commissioner to a guaranty
association is that information used to test the processes in the plan.
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