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04-165 Commissioner of Insurance

The mission of the Department of Insurance is to enforce the insurance laws and regulations of the state impartially, honestly, and expeditiously. The Department of Insurance will employ the highest ethical, professional and work quality standards will be exercised in all formal and informal relationships with individuals, agencies, and companies affected by the policies and actions of the department.

The goals of the Department of Insurance are:

1. Be the best insurance regulatory agency in the United States.

2. Ensure compliance with all state and federal laws, rules, and regulations.

3. Maintain accreditation by the National Association of Insurance Commissioners.

The Department of Insurance is organized under the authority of Title 36, Chapter 17 of the Louisiana Revised Statutes of 1950, as amended. The department is administered by the elected commissioner of insurance under authority of Article IV, Section 11 of the Louisiana Constitution. The commissioner serves a four-year term.

It is the duty of the commissioner of insurance to administer the provisions of the Louisiana Insurance Code, Title 22 of the Louisiana Revised Statutes. Insurance is defined as "a business affected with the public interest and it is the purpose of this code to regulate that business in all of its phases" (LSA R.S. 22:2.) The Louisiana Insurance Code is composed of thirty-nine parts. The commissioner of insurance has sole jurisdiction over the administration of thirty-eight of these thirty-nine parts and concurrent jurisdiction with the Louisiana Insurance Rating Commission over Part XXX.

The commissioner of insurance is responsible for oversight of the effectiveness and efficiency of the Department of Insurance while ensuring compliance with all applicable state and federal laws, rules, and regulations. The commissioner's jurisdiction includes overseeing the holding of insurance related hearings, issuing cease and desist orders and penalizing companies determined not to be in compliance with applicable laws, rules, and regulations; collection of insurance premium taxes and fees; and administration of a receivership program which is responsible for insurance companies that, through court action, have been placed in receivership (rehabilitation or liquidation).

The commissioner must also oversee complete regulation of the life, health and accident, property and liability, marine and inland marine, fidelity and surety insurance industries, and title insurance industry; approval of all policy forms before they may be offered to Louisiana citizens; administration of enforcing the Unfair Trade Practices Act regarding sale and advertising of insurance, unfair discrimination and excessive profits; verifying the accuracy of financial statements filed by insurance companies; analyzing investments of insurance companies; determining the solvency of insurance companies; approving merger and reinsurance agreements; overseeing the registration of securities and securities dealers issued by insurance companies; licensing of all vehicle mechanical breakdown insurers; regulation of group self-insurers for workers' compensation self-insurance; regulation of Louisiana Municipal Association and Police Jury Association self-insurance programs for liability of workers' compensation insurance; the regulation of automobile clubs; administration of Act 850 (Equal Opportunity in Insurance) of 1984, which was designed to assist minorities within the insurance industry; administration of the Insurance Rating Commission, which regulates the rules and rates of property, casualty, surety, and inland marine insurance to the end that rates are not excessive, inadequate, or unfairly discriminatory.

The Department of Insurance-Commissioner of Insurance has two programs: Administration/Fiscal and Market Compliance.

BUDGET SUMMARY

This agency's recommended appropriation does not include any funds for short-term debt.

This agency does not have any long-term debt for Fiscal Year 1998-1999.

This agency's recommended appropriation also includes the following amount by means of financing for payments on the unfunded accrued liability of the Louisiana State Employees' Retirement System in accordance with the provisions of Article X, Section 29 of the Constitution of Louisiana:

State General Fund by:

 

 

Fees & Self-gen. Revenues

 

$448,160

 

 

 

Total

 

$448,160


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