Provides for license fees collected by the commissioner of insurance (EN +$76,000 SG RV See Note)
Impact
The bill modifies the financial responsibilities of viatical settlement providers and claims adjusters by introducing a structured fee system for licensing and renewals. The establishment of an annual renewal fee of $500 for viatical settlement providers, alongside a $50 penalty for late license renewals for claims adjusters, aims to streamline the licensing process while also generating significant revenue for the state. This adjustment is expected to clarify the financial commitments required for operating within Louisiana's insurance landscape.
Summary
House Bill 643 focuses on the regulation of license fees collected by the commissioner of insurance in Louisiana. It amends existing laws to establish specific annual fees related to viatical settlement providers and introduces a late renewal fee for insurance claims adjusters. The intent behind these changes is to enhance the regulatory framework surrounding insurance practices in the state, ensuring that both new and existing providers contribute to the stability of the insurance market.
Sentiment
The sentiment surrounding HB 643 appears to be largely favorable among legislators, given that the measure passed in the Senate with an overwhelming majority of 37 votes in favor and none opposed. This bipartisan support suggests a consensus on the necessity of updating regulations to maintain the integrity of the insurance market, though specific stakeholder reactions, particularly from industry representatives, were not detailed in the discussions available.
Contention
While the bill is framed as a necessary improvement to insurance regulatory fees, some may question the potential financial burdens it places on smaller viatical settlement providers and claims adjusters. The introduction of penalties for late renewals could be viewed as punitive by some industry professionals, leading to concerns about accessibility and compliance for less established entities in the market. Nevertheless, the overarching goal remains to fortify the operational framework governing insurance providers in Louisiana.
Provides for collection of certain fees by the commissioner of insurance from property and casualty insurers. (7/1/20) (EG SEE FISC NOTE SG RV See Note)