§ 22:1981 — Commissioner of insurance to examine insurers and producers

§1981. Commissioner of insurance to examine insurers and producers
A.(1) The commissioner of insurance shall make an examination, not less frequently
than once every five years, of all insurers doing business in this state at such times as
prescribed by the provisions of this Chapter and at any other time when in the opinion of the
commissioner it is necessary for such an examination to be made. The commissioner shall
make a timely examination of an insurer upon presentation to him of a resolution approved
by a majority of the board of directors of the Louisiana Insurance Guaranty Association or
the Louisiana Life and Health Insurance Guaranty Association requesting that such an
examination be made of a designated insurer.
(2) The commissioner may make an examination of any producer doing business in
this state whenever he has received at least three complaints within a thirty-day period that
the producer is not acting in conformance with this Code.
(3) For purposes of completing an examination of any company under this Chapter,
and in addition to any other power granted to the commissioner by this Code, the
commissioner may examine or investigate any person, as defined in R.S. 22:691.2 or the
business of any person, in so far as such examination or investigation is, in the sole discretion
of the commissioner, necessary or material to the examination of the company.
B. The commissioner of insurance may examine once in each six months for the first
three years after organization or incorporation, and once in each year for the fourth through
sixth years after organization or incorporation, and thereafter in accordance with the
applicable provisions of this Chapter, all domestic insurers formed under the laws of this
state.
C. In lieu of an examination under this Section of any foreign or alien insurer
licensed in this state, the commissioner may accept an examination report on the company
as prepared by the insurance department for the company's state of domicile or port-of-entry
state. Such reports may be accepted only if:
(1) The insurance department was, at the time of the examination, accredited under
the National Association of Insurance Commissioners' Financial Regulation Standards and
Accreditation Program.
(2) The examination is performed under the supervision of an accredited state
insurance department, or with the participation of one or more examiners who are employed
by such an accredited state insurance department, and who, after a review of the examination
work papers and report, state under oath that the examination was performed in a manner
consistent with the standards and procedures required by their insurance department.
D. Upon determining that an examination should be conducted, the commissioner
shall appoint one or more examiners to perform the examination and instruct them as to the
scope of the examination. In conducting the examination, the examiner or examiners shall
observe those guidelines and procedures set forth in the Examiners' Handbook and the
Market Regulation Handbook adopted by the National Association of Insurance
Commissioners. The commissioner may also employ such other guidelines or procedures
as the commissioner may deem appropriate.
E. Nothing contained in this Chapter shall be construed to limit the commissioner's
authority to use any final or preliminary examination report, any examiner or company
workpapers or other documents, or any other information discovered or developed during the
course of any examination in the furtherance of any legal or regulatory action which the
commissioner may, in his sole discretion, deem appropriate.
F. Nothing contained in this Chapter shall be construed to limit the authority of the
commissioner to terminate or suspend any examination in order to pursue other legal or
regulatory action pursuant to the insurance laws of this state. Findings of fact and
conclusions made pursuant to any examination shall be prima facie evidence in any legal or
regulatory action.

Legislative History

Acts 1958, No. 125. Amended by Acts 1979, No. 702, §1; Acts 1989, No. 665, §1, eff. Sept. 1, 1989; Acts 1992, No. 811, §1; Acts 1999, No. 1304, §1, eff. July 12, 1999; Redesignated from R.S. 22:1301 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2012, No. 271, §1; Acts 2016, No. 6, §1; Acts 2024, No. 250, §1.