2006 Louisiana Laws - RS 22:2 — Insurance regulated in the public interest

§2.  Insurance regulated in the public interest

A.(1)  Insurance is an industry affected with the public interest and it is the purpose of this Code to regulate that industry in all its phases.  Pursuant to the authority contained in the Constitution of Louisiana, the office of the commissioner of insurance is created.  It shall be the duty of the commissioner of insurance to administer the provisions of this Code.  The term of office of the commissioner shall be four years and said officer shall be elected at the election for governor and other state officers.

(2)  The commissioner shall appoint a chief deputy commissioner and also an assistant to the commissioner, both of whom shall serve at his pleasure and whose salaries and duties shall be fixed by him.

(3)  The chief deputy commissioner shall have the authority to perform all the acts and duties of the office of the commissioner of insurance in the absence of the commissioner of insurance, in case of his inability to act, or under his direction.

B.  The duties and functions relating to insurance heretofore vested in and attached to the office of the Secretary of State by authority of Section 20 of Article V of the Constitution of Louisiana and all duties and functions relative to insurance matters heretofore performed by the secretary of state are hereby transferred to the office of the Commissioner of Insurance created by this Code.  No compensation shall be paid to the secretary of state in connection with insurance matters after the effective date of this Code.

C.  All books, papers, records, moneys, choses in action, and any other property heretofore used or possessed by any agency or person in the exercise of the duties and functions hereby transferred shall be transferred to and become the property of the office of the commissioner of insurance created herein.

All fees, revenues, appropriations, dedicated revenues and other funds having to do with insurance matters heretofore under the authority of any agency or person in the exercise of functions hereby transferred, are hereby transferred to the office of the commissioner of insurance.

D.  All employees heretofore engaged in the performance of duties, in any agency, in the exercise of functions transferred by this Code shall be transferred with such functions to the office of the commissioner of insurance and, so far as practicable, shall continue to perform the duties heretofore performed.

E.  Upon the transfer of functions, any pending or unfinished business shall be taken over and completed by the commissioner of insurance, with the same power and authority as the agency from which the functions are transferred.  The commissioner of insurance shall be the successor in every way to the agency from which such functions are transferred, and every act done in the exercise of such functions by the commissioner of insurance shall be deemed to have the same force and effect under any provisions of law in effect as if done by the agency from which such functions are transferred.  Whenever any agency from which functions are transferred is referred to, or designated by any law or contract or other document, such reference or designations shall be deemed to apply to the commissioner of insurance.  Whenever the secretary of state is referred to, or designated by any law or contract or other document, such reference or designation shall be deemed to apply to the commissioner of insurance.

F.  In addition to any other authority granted by this Title, the Department of Insurance is hereby authorized to regulate the coordination of medical, surgical, and hospital benefits of a self-insurance plan with such benefits of any other insurance plan.  For purposes of this Subsection, a self-insurance plan shall be defined as any plan by a person, partnership, corporation or other organization, or the state of Louisiana, other than a domestic or foreign insurance company which has qualified with the Department of Insurance, which provides or contracts to provide coverage as a self-insurer for his or its employees, stockholders, or any other persons.  This Subsection shall not apply to:  (1) the Office of Group Benefits, or (2) any plan of a labor organization or fraternal organization to the extent that it provides benefits to its members or the immediate family of its members, which benefits are supplemental to an employer-sponsored benefit plan.

G.(1)  Notwithstanding any other provision of law to the contrary, any entity issuing or providing coverage in this state for health care services, whether the coverage is by direct payment of or reimbursement for expenses incurred for such services, or otherwise, shall be presumed to be subject to the jurisdiction of the commissioner of insurance, unless the entity shows that, while providing the coverage, it is subject to the jurisdiction of another department or agency of the state, or any political subdivision of this state, or of the federal government.

(2)  An entity providing or issuing coverage for health care services in this state as described in Paragraph (1) of this Subsection may show that it is subject to the jurisdiction of another department or agency of this state, any political subdivision of this state, or the federal government by submitting to the commissioner of insurance the appropriate certificate, license, or other document or documentary evidence issued by such other governmental entity that authorizes or qualifies it to issue or provide such coverage.

(3)  Proof of jurisdiction by such other governmental agency shall be submitted to the commissioner of insurance prior to the issuance or provision in this state of any coverage as described in this Subsection.  The commissioner of insurance may take any action as may be authorized in this Title to enforce the provisions of this Subsection.

(4)  Any entity that fails to show that it is subject to the jurisdiction of any other governmental entity as described in this Subsection shall be subject to all appropriate provisions of this Title and shall submit to an examination by the commissioner of insurance to determine its organization and solvency and whether it is in compliance with the applicable provisions of this Title.

H.  In addition to any other powers granted by the Louisiana Insurance Code, the commissioner of insurance is hereby empowered to promulgate any rule or regulation necessary to meet the requirements for the accreditation of the Louisiana Department of Insurance under the National Association of Insurance Commissioners, Financial Regulation Standards and Accreditation Program.  Such implementation shall be subject to the legislative oversight of the Senate and House Committees on Insurance in accordance with R.S. 49:968.

I.  The commissioner shall maintain, as confidential, any document or information received from the National Association of Insurance Commissioners, insurance department of other states, international, federal, or state law enforcement agencies, and international, federal, or state regulatory agencies with statutory oversight over the financial services industry, which is confidential under the law of the state that sent the document or the applicable laws and regulations of the federal agency.  The commissioner may provide documents or information, including otherwise confidential documents or information, to state, federal, or international law enforcement agencies, to the National Association of Insurance Commissioners, insurance departments of other states, or to other state, federal, or international regulatory agencies with statutory oversight over the financial services industry, including but not limited to the Louisiana Office of Financial Institutions, if the recipient agrees to maintain the confidentiality of those documents which are confidential under the laws of this state.  The sharing of confidential or privileged information in accordance with this Subsection shall not be deemed a waiver of any privilege or claim of confidentiality in the documents, materials, or information.  The commissioner is authorized to use such documents, materials, or other information in the furtherance of any regulatory or legal action brought as part of the commissioner's official duties.

Acts 1958, No. 125.  Amended by Acts 1960, No. 138, §1; Acts 1965, No. 61, §6; Acts 1969, No. 11, §4; Acts 1974, No. 433, §4; Acts 1979, No. 236, §5, eff. Sept. 1, 1979; Acts 1980, No. 376, §4, eff. Sept. 1, 1980; Acts 1981, No. 636, §7, eff. Sept. 1, 1981; Acts 1982, No. 637, §1; Acts 1990, No. 641, §1; Acts 1992, No. 811, §1; Acts 1995, No. 846, §1, eff. Jan. 8, 1996; Acts 1995, No. 1203, §1, eff. June 29, 1995; Acts 1999, No. 885, §1, eff. June 30, 1999; Acts 2001, No. 1169, §1; Acts 2001, No. 1178, §2, eff. June 29, 2001; Acts 2003, No. 933, §1.