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Summary of Legislation
2003 Regular Session of the Louisiana Legislature

Licensing & Compliance

Act 65 (SB 229) by Sen. Hollis; effective August 15, 2003
Provides for continuing education credit for insurance producers active in recognized professional organizations.

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Act 130 (HB 1477) by Rep. Hebert; effective August 15, 2003
Amends provisions relative to certificates of authority for foreign and alien insurers.

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Act 131 (HB 1484) by Rep. Hebert; effective August 15, 2003
Clarifies that certificate of authority for domestic stock life insurer includes authority for credit life insurance.

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Act 136 (HB 1511) by Reps. Hebert & Capella; effective August 15, 2003
Repeals renewal provision for surplus lines brokers, making their renewals coincide with those of other insurance producers.

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Act 282 (HB 1209) by Rep. Capella; effective June 10, 2003
Provides penalties for failure of a dental referral plan to register with the Department of Insurance.

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Act 343 (HB 1691) by Rep. Hebert; effective August 15, 2003
Viatical Settlements Model Act, with Louisiana modifications.

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Act 378 (HB 887) by Rep. Erdey; effective January 1, 2004
Provides relative to “producers of record”.

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Act 421 (HB 1039) by Rep. Winston; effective August 15, 2003
Repeals prohibition on group property and casualty insurance.

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Act 994 (HB 1476) by Reps. Hebert & Fruge; effective July 2, 2003
Allows surplus lines insurers to file suits and responsive pleadings without posting security, if the insurer is on the Department of Insurance approved list and maintains an appropriate rating.

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Act 1224 (HB 2004) by Rep. Crowe; effective August 15, 2003
Provides that the Department of Insurance maintain a central database to contact life insurers upon a request to search for life insurance policies on a decedent.
Also provides for expansion of parameters for specialty limited lines credit insurance producer license, by regulation.

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Financial Solvency


Act 126 (HB 1444) by Reps. Hebert & Capella; effective August 15, 2003
Amends provisions relative to loaning of securities by domestic insurers to members of the National Association of Securities Dealers.

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Act 127 (HB 1445) by Reps. Hebert & Tucker; effective August 15, 2003
Authorizes domestic insurers to invest in certain public revenue securities.

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Act 171 (HB 1435) by Reps. Hebert & Baylor; effective August 15, 2003
Amends provisions relative to mortality tables for life insurance policies issued to residents of countries other than the U.S.

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Act 223 (SB 581) by Sen. Lentini; effective June 5, 2003
Defines solicitation of bail bonds, restricts solicitation, and provides for penalties for improper solicitation.

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Act 343 (HB 1691) by Rep. Hebert; effective August 15, 2003
Viatical Settlements Model Act, with Louisiana modifications.

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Management / Finance / Surplus Lines / Taxes


Act 293 (HB 1833) by Rep. Morrish; effective August 15, 2003
Amends grounds for denial, revocation or suspension of license for fraudulent acts, and amends provisions for funding of anti-fraud work by Department of Insurance, Department of Justice, and Department of Public Safety.

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Act 790 (SB 1110) by Sen. Boissiere; effective August 15, 2003
Requires Department of Insurance to develop database relative to compliance with compulsory vehicle liability, and provides for requests for proposals for work regarding same.

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Act 827 (SB 623) by Sen. Michot; effective August 15, 2003
Requires that various reports by state agencies to the Legislature include specified email notification, and that such reports be available electronically.

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Act 933 (HB 969) by Rep. Bowler; effective August 15, 2001
Adds requirement that all hearings pursuant to Part XXIX of the Insurance Code must be conducted by the Administrative Law Division.

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Act 994 (HB 1476)
by Reps. Hebert & Fruge; effective July 2, 2003
Allows surplus lines insurers to file suits and responsive pleadings without posting security, if the insurer is on the Department of Insurance approved list and maintains an appropriate rating.

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Act 1093 (HB 1419) by Rep. Erdey; effective August 15, 2003
Provides for the Department of Public Safety to promulgate rules for certifying defensive driving courses; provides that the certification program will be funded by the Department of Insurance through an inter-agency agreement.

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Act 1271 (HB 1387)
by Rep. Lancaster; effective July 11, 2003
Provides that state agency which appeals adjudication by the Administrative Law Division shall pay court costs, and shall be liable for other parties’ court costs and attorneys’ fees if the agency fails to prevail on appeal; requires that such payments be made from agency’s budget, and reported to Legislature.

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Fraud Section / Legal Services


Act 293 (HB 1833) by Rep. Morrish; effective August 15, 2003
Amends grounds for denial, revocation or suspension of license for fraudulent acts, and amends provisions for funding of anti-fraud work by Department of Insurance, Department of Justice, and Department of Public Safety.

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Act 933 (HB 969) by Rep. Bowler; effective August 15, 2001
Adds requirement that all hearings pursuant to Part XXIX of the Insurance Code must be conducted by the Administrative Law Division.

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Act 1271 (HB 1387)
by Rep. Lancaster; effective July 11, 2003
Provides that state agency which appeals adjudication by the Administrative Law Division shall pay court costs, and shall be liable for other parties’ court costs and attorneys’ fees if the agency fails to prevail on appeal; requires that such payments be made from agency’s budget, and reported to Legislature.

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Property & Casualty


Act 132 (HB 1485) by Reps. Hebert & Fruge; effective August 15, 2003
Defines credit property and casualty insurance.

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Act 137 (HB 1512) by Reps. Hebert & Morrish; effective August 15, 2003
Requires insurers requiring specific proof of loss forms to provide such forms to an insured upon learning of a potential claim.

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Act 298 (SB 55) by Sen. Fields; effective August 15, 2003
Prohibits cancellation of an automobile insurance policy solely on the basis of a single claim against the policy.

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Act 333 (HB 943) by Rep. Flavin; effective August 15, 2003
Makes various changes to the New Home Warranty Act.

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Act 351 (SB 721)
by Sen. Hainkel; effective January 1, 2004
Creates a flexible rating process for property and casualty rates, not subject to the Louisiana Insurance Rating Commission.

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Act 405 (HB 451) by Rep. Erdey; effective June 18, 2003
Changes provisions relative to suspended or revoked motor vehicle registration for failure to maintain insurance.

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Act 415 (HB 703) by Rep. Pinac; effective August 15, 2003
Provides that federally insured depository institutions shall be considered lenders for purpose of offering gap insurance in connection with motor vehicle sales finance.

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Act 421 (HB 1039) by Rep. Winston; effective August 15, 2003
Repeals prohibition on group property and casualty insurance.

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Act 456 (HB 1508) by Rep. Hebert; effective August 15, 2003
Omnibus LIRC act. Amends various statutes to reflect actual organization of, and relationship between, the Louisiana Insurance Rating Commission and the Office of Property and Casualty of the Department of Insurance.

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Act 485 (SB 336) by Sen. Fields; effective August 15, 2003
Prohibits suspension of surgical procedures by workers’ compensation providers during pendency of appeal.

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Act 532 (SB 53) by Sen. Fields; effective August 15, 2003
Alters provisions for limitation of recovery for uninsured motorists.

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Act 590 (HB 767) by Rep. Bowler; effective August 15, 2003
Changes the makeup of the Louisiana Property and Casualty Insurance Commission.

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Act 616 (HB 301) by Rep. Murray; effective August 15, 2003
Prohibits reduction of workers’ compensation benefits due to receipt of Social Security old-age benefits.

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Act 628 (HB 440) by Rep. Morrish; effective August 15, 2003
Requires records of PIAL used for public fire protection gradings be open to fire chiefs and officials of fire protection districts.

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Act 647 (HB 687) by Rep. Pinac; effective August 15, 2003
Broadens the application of the current motor vehicle damage disclosure provisions.

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Act 732 (HB 1686) by Rep. Dewitt; effective January 1, 2004
Enacts the “Driving is a Privilege” law authorizing suspension of drivers’ licenses of certain students.

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Act 790 (SB 1110) by Sen. Boissiere; effective August 15, 2003
Expands requirement to make written offer to settle certain property damage claims within thirty days of receipt of proof of claim to include third-party claimants.

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Act 880 (HB 1328) by Rep. Pinac; effective August 15, 2003
Provides for the licensure of persons who perform mold assessment and mold remediation services.

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Act 1133 (HB 1788) by Rep. Morrish; effective August 15, 2003
Creates the Louisiana Citizens Property Insurance Corporation to continue the FAIR and Coastal Plans.
Also includes original text of HB 1510 by Rep. Hebert, making changes to the standard fire policy.

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Act 1204 (SB 819) by Sen. Dardenne; effective August 15, 2003
Provides for penalties for failure of workers’ compensation provider to honor employee’s choice of treating physician.

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Act 1224 (HB 2004) by Rep. Crowe; effective August 15, 2003
Provides, in part, for expansion of parameters for specialty limited lines credit insurance producer license, by regulation.

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Act 1256 (HB 1448) by Rep. Hebert; effective August 15, 2003
Limits the use of credit scoring relative to personal lines insurance.

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SCR 112 by Sen. C. Jones
Creates the Workers’ Compensation Advisory Board.

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SCR 139
by Sen. Heitmeier
Requests the Commissioner of Insurance to provide reports regarding implementation of “flexible rating” and the effect on property and casualty insurance rates.

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HSR 33
by Rep. G. Smith
Requests the House Insurance Committee study various methods of providing automobile liability insurance to citizenry.

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Life & Annuity


Act 124 (HB 1434) by Reps. Hebert & Morrish; effective August 15, 2003
Prohibits exclusion of assignment to viatical settlement provider in otherwise assignable life policy.

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Act 125 (HB 1436) by Rep. Hebert; effective August 15, 2003
Mandates that life policies include a settlement option for the payment of benefits in a lump sum.

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Act 128 (HB 1446) by Rep. Hebert & Faucheux; effective August 15, 2003
Extends prohibitions, currently applicable to individual life policies, against certain exclusions and restrictions, making them applicable to group policies.

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Act 131 (HB 1484) by Rep. Hebert; effective August 15, 2003
Amends law to clarify that, as to domestic stock insurers, a certificate of authority for life insurance includes authority for credit life insurance.

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Act 132 (HB 1485) by Reps. Hebert & Fruge; effective August 15, 2003
Defines credit life, health and accident insurance.

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Act 171 (HB 1435) by Reps. Hebert & Baylor; effective August 15, 2003
Amends provisions relative to mortality tables for life insurance policies issued to residents of countries other than the U.S.

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Act 343 (HB 1691) by Rep. Hebert; effective August 15, 2003
Viatical Settlements Model Act, with Louisiana modifications.

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Act 386 (HB 2012) by Rep. Hebert; effective August 15, 2003
Adds new NAIC standard nonforfeiture provisions for individual deferred annuities.

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Act 410 (HB 618) by Rep. Flavin; effective August 15, 2003
Broadens permitted methods by which life and health producers may obtain information from an applicant for insurance.

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Act 1224 (HB 2004) by Rep. Crowe; effective August 15, 2003
Provides that the Department of Insurance maintain a central database to contact life insurers upon a request to search for life insurance policies on a decedent.
Also provides for expansion of parameters for specialty limited lines credit insurance producer license, by regulation.

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Health


Act 68 (SB 420) by Sen. McPherson; effective August 15, 2003
Creates “Patients’ Bill of Rights” relative to health insurance.

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Act 129 (HB 1466) by Rep. Hebert; effective May 28, 2003
Redesignates “franchise” health insurance coverage as “association” health insurance coverage.

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Act 132 (HB 1485) by Reps. Hebert & Fruge; effective August 15, 2003
Defines credit life, health and accident insurance.

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Act 140 (HB 1537) by Rep. Hebert; effective August 15, 2003
Amends provisions relative to stop-loss insurance.

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Act 190 (SB 138) by Sen. Dardenne; effective August 15, 2003
Mandates health insurance policies provide coverage for services rendered by registered nurse first assistants.

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Act 282 (HB 1209) by Rep. Capella; effective June 10, 2003
Provides penalties for failure of a dental referral plan to register with the Department of Insurance.

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Act 294 (HB 2005) by Rep. Hebert; effective August 15, 2003
Requires creation by insurers of appeal procedure for appealing denial of dental claims.

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Act 359 (HB 157) by Rep. Downer; effective June 18, 2003
Clarifies the reinstatement rights of military dependents to group health insurance after military service.

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Act 378 (HB 887)
by Rep. Erdey; effective January 1, 2004
Provides relative to “producers of record”.

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Act 410 (HB 618) by Rep. Flavin; effective August 15, 2003
Broadens permitted methods by which life and health producers may obtain information from an applicant for insurance.

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Act 424 (HB 1438) by Rep. Hebert; effective June 18, 2003
Authorizes Department of Insurance and Department of Health and Hospitals to establish a pilot health insurance program for small employers.

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Act 444 (HB 981)
by Rep. Strain; effective August 15, 2003
Adds “dietician” to certain definition of health care provider.

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Act 528 (HB 1989) by Rep. Hebert; effective June 24, 2003
Creates the Louisiana Safety Net Health Insurance Program to provide minimal benefit hospital and medical policies through employers.

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Act 659 (HB 1149) by Rep. Bowler; effective August 15, 2003
Provides for compliance by health insurers with state law relative to Gramm-Leach-Bliley Act; amends provisions relative to small group and individual health insurance rating; provides for medical savings account policies.

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Act 672 (HB 1765) by Rep. Ansardi; effective August 15, 2003
Allows health care provider thirty days not only to appeal insurer’s action regarding recoupment, but to provide patient and treatment information; requires insurer to provide revised explanation of benefits under certain circumstances.

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Act 747 (SB 257)
by Sen. Dardenne; effective August 15, 2003
Adds and defines “extracorporeal therapist” as health care provider for purposes of medical malpractice.

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Act 816 (SB 408) by Sen. Gautreaux; effective August 15, 2003
Mandates health insurance coverage for hearing aids for minor children.

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Act 829 (SB 666) by Sen. Heitmeier; effective August 15, 2003
Mandates health insurance coverage for low protein food products to treat inherited metabolic diseases.

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Act 847 (SB 1126) by Sen. Lentini; effective July 1, 2003
Alters the provisions for premium payments by employers under the Quality Jobs Program.

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Act 848 (SB 1132)
by Sen. Hines; effective August 15, 2003
Establishes the Louisiana Senior Rx Program.

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Act 858 (HB 841) by Rep. Ansardi; effective August 15, 2003
Provides for electronic delivery of certain health and accident policies.

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Act 897 (SB 227) by Sen. Hollis; effective August 15, 2003
Prohibits the state from assessing deficits to the plan members in State Group Benefits Program.

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Act 1106 (HB 1538) by Rep. Tucker; effective December 31, 2003
Implements risk-based capital for HMOs.
Additionally, the text of HB 1447, by Rep. Hebert, was amended onto this bill, establishing receivership procedures for HMOs.

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Act 1109 (HB 1555) by Rep. Bowler; effective August 15, 2003
Defines “working day” for purposes of medical necessity review organizations.

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Act 1114 (HB 1584) by Rep. Welch; effective July 2, 2003
Creates Community-based Primary Health Care Initiative.

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Act 1115 (HB 1606) by Rep. Morrish; effective July 2, 2003
Places a “moratorium” on additional statutorily mandated health insurance benefits.

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Act 1149 (HB 1877) by Rep. G. Smith; effective August 15, 2003
Provides relative to health care providers supplying claim forms and itemized billing statements.

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Act 1157 (HB 1966) by Rep. Hebert; effective January 1, 2004
Creates new provisions regarding billing of enrollees and insureds by contracted health care providers and noncontracted facility-based providers; notice and disclosure to enrollees and insureds by insurers and health care facilities of circumstances that may result in billing or insureds or enrollees.

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Act 1224 (HB 2004) by Rep. Crowe; effective August 15, 2003
Provides for expansion of parameters for specialty limited lines credit insurance producer license, by regulation.

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Act 1260 (HB 1934) by Rep. Baldone; effective August 15, 2003
Provides that, in certain litigation, defense counsel and liability insurers shall have access to health care records.

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SR 18 by Sen. Holt
Creates committee to study feasibility and impact of requiring all school boards to participate in a single health insurance risk pool.

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SCR 57 by Sen. Thomas
Continues the Task Force on the Working Uninsured.

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SCR 102
by Sen. Thomas
Creates task force to recommend implementation methods to create database concerning health insurance for the uninsured.

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SCR 118 by Sen. B. Jones
Creates task force to study health care needs of purchasers, employers and consumers and to study the feasibility of creating a Louisiana Health Care Information Council.

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SCR 130 by Sen. Schedler
Creates commission to assess advisability of purchasing Medicare coverage for individuals in state group benefits program.

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SCR 136 by Sen. Thomas
Requests the Department of Insurance, the Department of Health and Hospitals, the Department of Labor, the Division of Administration, the Department of Economic Development, and the Department of Social Services work together to develop proposals and recommendations to increase private employer contributions for employee health insurance.

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HR 166 by Rep. Hebert
Authorizes a special subcommittee to study health insurers and HMOs, and their impact on enrollees, insureds and health care providers.

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HCSR 10 by Rep. Morrish
Requests House and Senate Insurance Committees study alternative ways to fund health services for certain high-risk children and other family members.

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Receivership


Act 1106 (HB 1538) by Rep. Tucker; effective December 31, 2003
Implements risk-based capital for HMOs.
Additionally, the text of HB 1447, by Rep. Hebert, was amended onto this bill, establishing receivership procedures for HMOs.

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Premium Finance Companies


Act 633 (HB 483) by Rep. Pinac; effective August 15, 2003
Allows insurance premium finance companies to collect origination fees.

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Act 645 (HB 685) by Rep. Pinac; effective August 15, 2003
Makes numerous changes to provisions for premium finance contracts, including requirement for return of unearned finance charges upon prepayment.

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General Interest


Act 135 (HB 1509) by Rep. Hebert; effective August 15, 2003
Provides that all of Title 22 of the Louisiana Revised Statutes is designated as the “Insurance Code”.

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