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      RS 22:1453     

  

§1453.  Competitive market

A.(1)  A competitive market for a line of insurance is presumed to exist unless the commissioner, after giving reasonable notice and after conducting a public hearing, determines that a reasonable degree of competition does not exist within a market and issues a ruling that a reasonable degree of competition in the market for a particular line of insurance does not exist.  In any public hearing to determine whether a competitive market exists for a line of insurance, the party alleging that competition does not exist shall have the burden of proving that market competition does not exist.

(2)  If the commissioner issues a ruling pursuant to this Section that a competitive market does not exist for a line of insurance, the ruling shall identify those factors listed in Subsection B of this Section that have caused the market to be noncompetitive and shall describe the action or actions to be undertaken by the commissioner and the state to return competition to the market.

(3)  Each ruling that a market is not competitive shall expire one year from the date of issuance unless rescinded by the commissioner prior to such date or renewed by the commissioner pursuant to this Subsection.

(4)  The commissioner may renew a ruling that a market is not competitive if, after conducting a public hearing on such renewal, the commissioner determines that a continued lack of reasonable competition exists in the market for a line of insurance.  The action to renew a finding of no competition under this Subsection shall state the actions undertaken by the commissioner and the state to restore competition and the reasons such actions failed to return competition to the market.

B.  The following factors shall be considered by the commissioner in determining if a reasonable degree of competition exists in a particular line of insurance:

(1)  The number of insurers or groups of affiliated insurers providing coverage in the market.

(2)  Measures of market concentration and changes of market concentration over time.

(3)  Ease of entry into the market and the existence of financial or economic barriers preventing new insurers from entering the market.

(4)  The extent to which any insurer or group of affiliated insurers controls all or a portion of the market.

(5)  Whether the total number of companies writing the line of insurance in this state is sufficient to provide multiple options.

(6)  The availability of insurance coverage to consumers in the market.

(7)  The opportunities available to consumers in the market to acquire pricing and other consumer information.

C.  The commissioner shall regularly monitor the degree and existence of competition in the state.  The commissioner may utilize existing relevant information, analytical systems, and other sources, or any combination of such items.  These monitoring activities may be conducted within the Department of Insurance, in cooperation with other state insurance regulators, through outside contractors, or in any other appropriate manner.

D.  An aggrieved party affected by the commissioner's decision, act, or order may demand a hearing in accordance with Chapter 12 of this Title, R.S. 22:2191 et seq.

Acts 2007, No. 459, §1, eff. Jan. 1, 2008; Redesignated from R.S. 22:1402.1 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 317, §1.

NOTE:  Former R.S. 22:1453 redesignated as R.S. 22:1675 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009.



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