LEGISLATIVE ACTIONS:

House Bill 644

• The enacted legislation authorizes the denial of an application for licensure as a third-party administrator. Current law requires the commissioner of insurance to suspend or revoke the license of a third-party administrator or impose a fine for each separate violation not to exceed $5,000 per violation or $25,000 in the aggregate if the commissioner finds that the administrator is using methods or practices in the conduct of business that render the further transaction of business in this state hazardous or injurious to insured persons or the public. The enacted legislation retains present law and further requires the commissioner to deny the application for a license on the same basis. Currently the law authorizes the commissioner to suspend or revoke the license of a third-party administrator or impose a fine not to exceed $5,000 per violation or $25,000 in the aggregate if the commissioner finds the administrator has performed certain acts or meets certain criteria. The enacted legislation retains present law and authorizes the commissioner to deny the application for a license on the same basis. The enacted legislation further adds the basis of having provided incorrect, misleading, incomplete or materially false information or omitted material information in the license application.  Effective Date August 1, 2018.

House Bill 752

• The enacted legislation provides for the use of motor vehicle reports procured by a licensed producer or insurance agency in the quoting and underwriting of automobile insurance. Currently the law prohibits an insurer from charging any fee, compensation, or consideration for insurance which is not included in the premium quoted to the insured and the premium specified in the policy delivered to the insured, except for the premium tax on a surplus lines policy, reimbursement for the producer's expenses, and any agency fee. The enacted legislation retains present law. Current law authorizes the producer to receive reimbursement from the insured for expenses incurred by the producer directly related to the insurance coverage for the insured and to charge a reasonable agency fee related to the services provided by the producer. The enacted legislation retains present law. The enacted legislation requires any insurer doing business in this state to accept a current copy of any motor vehicle report procured by a licensed producer or licensed insurance agency on behalf of a client in the quoting and underwriting of automobile insurance.  The enacted legislation further provides that the motor vehicle report shall be deemed current if the report was issued within 15 days of the requested quote.  The enacted legislation prohibits an insurer who chooses to procure a motor vehicle report after having been provided with a current motor vehicle report by a producer or agency from passing that cost on to the producer, agency, client, or insured.  The enacted legislation authorizes an insurer who did not receive a current motor vehicle report from an agency or producer with the request for a quote to procure any necessary motor vehicle report. It further authorizes the insurer to provide the producer or agency with a current copy of the motor vehicle report and charge the actual cost of the motor vehicle report to the producer or agency seeking the quote.

Finally, it also authorizes the producer or agency to charge the client the actual cost of the motor vehicle report. Effective Date August 1, 2018. Senate Bill 85

• Current law provides for an insurance policyholder bill of rights, which serves as standard expectations for any insurance policyholder. Further, current law gives policyholders the right to receive payment of the amount of any property damage claim, or a portion of the claim, due or a written offer to settle any property damage claim within 30 days after receipt of satisfactory proof of loss in accordance with present law.  The enacted legislation retains present law and requires a claim payment to be made by check, draft, or, if offered by the carrier and the claimant requests, electronic transfer of funds.  Effective Date August 1, 2018.

Senate Bill 135

• Current law applicable to vehicles registered in La. provides for limits of motor vehicle liability insurance policy coverage amounts. Current law applicable to vehicles registered in any state requires the commissioner of insurance to suspend the license and all registrations of an operator and owner of a motor vehicle involved in an accident resulting in bodily injury or death under certain circumstances.
• The enacted legislation retains present law. Current law requires the owners of motor vehicles registered in other states or jurisdictions that require liability security to maintain the security and proof as required by their respective state or jurisdiction while the vehicle is operated in this state. The enacted legislation presents law and provides that a personal injury protection card issued from an insurer in another state or jurisdiction shall not be sufficient proof of liability security. The current statute provides exceptions to the required suspension including that the suspension shall not apply if the owner had, at the time of the accident, a liability policy in effect for the motor vehicle involved. Requires certain policy limits for the exception to apply.  The enacted legislation retains present law and increases the limits for out-of-state drivers to reflect the limits applicable in present law to Louisiana drivers as follows:
  • If the accident has resulted in bodily injury or death, to a limit, exclusive of interests and costs, of not less than $15,000 because of bodily injury or death of one person in any one accident;
  • If the accident has resulted in bodily injury or death, to a limit, exclusive of interests and costs, of not less than $30,000 because of bodily injury or death of two or more persons in any one accident; and
  • If the accident has resulted in injury to or destruction of property, to a limit of not less than $25,000 because of injury to or destruction of property of others in any one accident. The enacted legislation provides that a personal injury protection card issued from an insurer in another state or jurisdiction shall not be acceptable as proof of liability policy limits.  Effective Date August 1, 2018.

REGULATORY ACTIVITY:

• Issued Bulletin 2018-01 which rescinds Bulletin 2011-04 and Bulletin 2012-02. All surplus lines insurers, brokers, producers, and policyholders independently procuring surplus lines insurance are hereby given notice that Bulletin No.  2011-04, issued on December 29, 2011, and Bulletin No.  2012-02, issued on June 14, 2012, are rescinded.  To view the bulletin go to: https://ldi.la.gov/docs/default-source/documents/legaldocs/bulletins/bul2018-02-cur-licensingcontactsupdate
• Published notice in the state register regarding a proposed rule. In accordance with R.S. 49:950 et seq., the Administrative Procedure Act, and through the authority granted under R.S. 22:1 and 22:11, et seq., the Department of Insurance has adopted Regulation 109 to implement the provisions of Act 154 of the 2017 Regular Session of the Louisiana Legislature, specifically R.S. 22:821(B)(3)  and 22:1546(B)(1)(a),  in  addition  to  22:1547(C)(1),  22:255, 22:1545,  22:1554,  22:1558,  22:1563,  22:1671,  22:1694, 22:1808.8  and  22:1922  which  provide  for  the  licensing  of insurance  producers,  claims  adjusters,  public  adjusters, insurance  consultants  and  the  licensing  of  business  entities as insurance producers. To view the notice, go to: https://ldi.la.gov/docs/default-source/documents/legaldocs/regulations/reg109-cur-produceradjusterandr.
• Issued Bulletin 2018-02 regarding licensing contacts update. The purpose of Bulletin 2018-02 is to inform all risk bearing entities of the requirements of Act 10 of the 2017 Regular Session of the Louisiana Legislature. Beginning January 1, 2018, all risk bearing entities must provide accurate contact information to the Commissioner and shall annually certify via electronic means the accuracy of the name, mailing address, phone number, and electronic mail address of individuals appointed as their respective contact representative. Additionally, Act 10 of the 2017 Regular Session requires risk bearing entities to inform the Commissioner within thirty days of any change in the information required by Act 10 of the 2017 Regular Session of the Louisiana Legislature. You may find a list of "risk bearing entities" in La. R.S. 22:48. To view a copy of the bulletin, go to: https://ldi.la.gov/docs/default-source/documents/legaldocs/bulletins/bul2018-02-cur-licensingcontactsupdate.

REGULATORY ACTIVITY:

• Issued bulletin No. 2017-07 regarding certificates of destruction for water damaged vehicles.
• Published Advisory Letter 2017.02 regarding statutory requirements for granting defensive driver discounts on automobile insurance policy premiums.  Issued on September 27, 2017.

REGULATORY ACTIVITY:

• Posted a rule in the August Register. The Department of Insurance, pursuant to the authority of the Louisiana Insurance Code, R.S.  22:1 et seq., and in accordance with the Administrative Procedure Act, R.S. 49:950 et seq., published a Notice of Intent in the April 20, 2017 edition of the Louisiana Register (LR  43:828-832) to adopt Regulation 108—Investigation of Discrimination Complaints.  The purpose of Regulation 108 is to establish procedures for receiving and investigating discrimination complaints, pursuant to subpart C of chapter 1 of title 22 of the Revised Statutes (R.S.  22:31 et seq., “equal opportunity in insurance”).  The department accepted public comments from April 20, 2017 through May 22, 2017.  As  a  result  of  the  comments received,  the  department  now  proposes  substantive  changes to  the  provisions  in  §§15105,  15107,  15109,  15111,  15113, and 15117 of the proposed Rule.