Louisiana House Bill HB160

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12
• Report Pass: 3/28/12
• Engrossed: 4/4/12
• Refer: 4/9/12
• Report Pass: 5/2/12
• Enrolled: 5/9/12
• Chaptered: 5/11/12
• Passed: 5/11/12

Caption

Requires certain additional insurers to pay an annual financial regulation fee assessed by the commissioner of insurance (EN -$8,000 SG RV See Note)

Impact

The implementation of HB 160 will have a direct influence on the operational costs for the specified insurance companies, increasing their financial commitments to the state. By incorporating vehicle mechanical breakdown insurers and property residual value insurers into this regulatory fee structure, the bill ensures that these companies contribute to the funding of the regulatory activities performed by the commissioner of insurance. This is significant for maintaining the integrity and reliability of the insurance market in Louisiana.

Summary

House Bill 160 aims to amend the existing regulations of insurance fees by establishing an annual financial regulation fee to be assessed on vehicle mechanical breakdown insurers and property residual value insurers. This legislation seeks to enhance the financial oversight of these specific types of insurance providers by including them under the purview of the relevant regulatory framework, which already applies to health maintenance organizations and other insurance companies. The proposed fee is set at $1,000, which echoes the existing financial regulation fees applicable to similar entities.

Sentiment

Overall, the sentiment surrounding HB 160 appears to be supportive among legislators, as evidenced by its unanimous passage in the Senate with a vote of 35 to 0. The bill is viewed as a necessary adjustment to the state’s insurance regulation framework, aimed at ensuring that all relevant insurers contribute appropriately to the oversight mechanisms in place. There were no recorded dissenting opinions during the voting process, suggesting a legislative consensus on the need for this regulatory update.

Contention

While there may not be significant points of contention publicly expressed regarding HB 160, the introduction of new fees can always stir concerns among industry players about the financial burden of compliance. However, in this instance, it appears there was broad agreement on the need for fair regulation across different types of insurance, mitigating potential disputes about the bill's provisions. The focus remained on how the fee structure will strengthen regulatory oversight rather than on opposition to the fees themselves.