2006 Louisiana Laws - RS 22:1384 — Duties and powers of the commissioner

§1384.  Duties and powers of the commissioner

A.  The commissioner shall:

(1)  Notify the association of the existence of an insolvent insurer not later than three days after he receives notice of the determination of the insolvency.  

(2)  Upon request of the board of directors, provide the association with a statement of the net direct written premiums of each member insurer.

(3)  Consult with the board of directors of the association, or with said board's duly appointed committee, on all applications to do business in this state made by domestic and foreign insurers which are prospective member insurers and all applications for modification of existing certificates of authority to do business in this state made by such insurers, to determine whether such insurer is in such a condition that its transaction of business in this state would be hazardous to policyholders and creditors in this state and to the public, or that its transaction of business in this state or the modification of its present authority to transact business in this state would involve a substantial risk of a covered claim being made against the association under the provisions of this Part.  In the event the association or such board's duly appointed committee recommends in writing to the commissioner that a domestic or foreign insurer not be admitted to do business in this state or that the existing certificate of authority issued to such an insurer not be modified because one or more of the above cited conditions are deemed to exist, then in that event it shall be the duty of the commissioner to conduct a hearing on the application, giving the insurer at least thirty days notice of such hearing.  The hearing shall be conducted in accordance with the Rules of Practice and Procedure before the commissioner of insurance and the Administrative Procedure Act of Title 22 of the Louisiana Revised Statutes of 1950.  The association shall be notified of the hearing at least fifteen days in advance thereof, and shall be afforded a reasonable opportunity to inspect all documentary evidence, to present evidence and examine witnesses if it so elects.  Within thirty days after the termination of the hearing, the commissioner shall make his order thereon which shall in all respects comply with the provisions of R.S. 22:1359.  

B.  The commissioner may:

(1)  Require that the association notify the insureds of the insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this Part.  Such notification shall be by mail at their last known address, where available, but if sufficient information for notification by mail is not available, notice by publication in a newspaper of general circulation shall be sufficient.  

(2)  Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any member insurer which fails to pay an assessment when due or fails to comply with the plan of operation.  As an alternative, the commissioner may levy a fine on any member insurer which fails to pay an assessment when due.  Such fine shall not exceed five percent of the unpaid assessment per month, except that no fine shall be less than one hundred dollars per month.  

(3)  Revoke the designation of any servicing facility if he finds claims are being handled unsatisfactorily.  

Added by Acts 1970, No. 81, §1.  Amended by Acts 1976, No. 219, §1; Acts 1979, No. 474, §1.