The Louisiana Department of Insurance announced an amendment to Rule 13 — Special Assessment; Creation of Dedicated Fund Account, which was originally promulgated in 2000. Rule 13 provides the means for the assessment fee charged to insurers to fund insurance fraud investigation and enforcement in the state.
The amended rule changes the way fees are allocated. First, $30,000 is withheld annually to cover the expense of the collection of the fees and the operation of the Department of Insurance. An additional $187,000 is then withheld annually to fund insurance fraud detection, investigation, and public awareness.
The remaining fees are distributed as follows: 75% to the Insurance Fraud Investigation Unit within the Office of State Police, 15% to the Department of Justice’s Insurance Fraud Support Unit, and 10% to the Department of Insurance’s Section of Insurance Fraud. Any excess funds at the end of the fiscal year will be refunded to each insurer on a pro rata basis.
The assessment does not apply to premiums received on life insurance policies, annuities, credit insurance, crop and livestock insurance, federal flood insurance polices, reinsurance contracts, reinsurance agreements, or reinsurance claims transactions. Only 50% of the premiums received on health and accident insurance policies are subject to the assessment.
A copy of Rule 13 can be found here.