§4351.5. Authority of Department of Insurance
A. The fund shall not become operative until issued a certificate of authority by the
department. Except for the certificate of authority, the department shall keep confidential
all documents and records associated with the provisions of this Section.
B. The certificate of authority shall be continuous until revoked or suspended by the
department, or until it is voluntarily surrendered by the fund.
C.(1) The department shall have the authority to examine the affairs, books,
transactions, workpapers, files, accounts, records, assets, and liabilities of the fund to
determine compliance with this Part and with any rules and regulations promulgated by the
department or orders and directives issued by the department. In addition, to the extent
necessary and material to the examination of the fund, the department shall have the
authority to examine the affairs, books, transactions, workpapers, files, accounts, and records
of the fund's administrator, service company, certified public accountant, or actuary
generated in the course of transacting business on behalf of the group self-insurance fund
being examined. All examinations shall be conducted in accordance with the provisions of
this Part. The reasonable expenses of the examinations shall be paid by the fund.
(2) Upon the request of the department, the group self-insurance fund established
pursuant to this Part shall cause a rate review to be conducted by a national independent
actuarial firm, provided that the department shall not make more than two requests in any
calendar year for a rate review under the provisions of this Subsection. The firm shall report
its findings to the department.
(3) All work papers, recorded information, documents, information, and copies
thereof produced by, obtained by, or disclosed to the department or any other person,
pursuant to the authority of the department under this Part, shall be given confidential
treatment and shall not be subject to subpoena, except in the following circumstances:
(a) Information sought has been provided pursuant to R.S. 3:4351.10(C) or
4351.11(I).
(b) Documents sought are audited financial statements which have been filed with
the department.
D. The department shall have authority to issue cease and desist orders and suspend
or revoke the certificate of authority of the fund which the department determines is not in
compliance with this Part or with any rule promulgated by the department pursuant to the
Administrative Procedure Act or order or directive issued by the department. Without
limiting the generality of the provisions of this Subsection, a cease and desist order may
include a prohibition on writing or incurring any new or renewal business by the fund.
E. Upon the determination by the department that the fund or any trustee, member,
officer, director, or employee of the fund failed to comply with the provisions of this Part,
any applicable laws relating to the fund, or any rule promulgated by the department or order
or directive issued by the department, the department may levy a fine not to exceed two
thousand dollars for each violation. If the conduct for which a previous fine was levied by
the department is committed again, the department may levy a fine not to exceed four
thousand dollars. The enforcement of any fine and any appeal from a fine shall be conducted
in accordance with the Administrative Procedure Act.
F. The division of administrative law shall conduct a hearing in accordance with R.S.
22:2191.
G. Nothing in this Section shall prohibit the legislative auditor from reviewing
records and conducting an audit in accordance with R.S. 24:513.
H.(1) The department is authorized to order the group self-insurance fund to submit
a corrective action plan to the department for its approval to remediate any noncompliance
or financial issues affecting the fund. This authority is in addition to any other authority the
department holds.
(2) The corrective action plan shall be submitted by the fund to the department for
its approval and include standards, time frames, and other parameters acceptable to the
department. Any corrective action plan that is submitted to the department by the fund shall
be kept confidential by the department.
(3) Without limiting the discretion of the department, the corrective action plan may
include any of the following:
(a) Mandatory training.
(b) On-site or off-site monitoring and supervision of the activities of the fund for a
specified period of time to determine progress regarding correction of deficiencies.
(c) The submission of written progress reports.
(d) The institution of measures to conserve or generate additional funding for the
fund.
(e) The imposition of fines and penalties for any misconduct which contributed to
the need for the imposition of the corrective action plan.
(4) Failure by the group self-insurance fund to comply with a corrective action plan
approved by the department may result in any of the following:
(a) The imposition of fines and penalties.
(b) Revocation of the fund's certificate of authority.
(c) Placement of the fund into administrative supervision pursuant to R.S. 22:731
et seq.
(d) Placement of the fund into receivership pursuant to R.S. 22:2001 et seq.
Acts 2022, No. 586, §1, eff. June 17, 2022; Acts 2022, No. 598, §1, eff. June 18,
2022.