To authorize and direct the legislative auditor and the Department of Insurance to study the financial transactions of foreign and domestic insurers who are authorized to do and are doing business in Louisiana.
SCR 61 is a concurrent resolution that directs the Louisiana Legislative Auditor, working with the Department of Insurance, to study financial transactions involving foreign and domestic insurers doing business in Louisiana. The study focuses on insurers writing residential property and private passenger auto coverage, and on their affiliated entities such as managing general agents, holding companies, and service providers. The review period is January 1, 2021 through December 31, 2024.
The resolution requires the report to examine financial data, affiliated-company relationships disclosed in regulatory filings, and the types of payments made to affiliates, including management fees, reinsurance premiums, commissions, administrative services, and dividends. It also asks the auditor to assess whether these transactions affected reported losses, surplus levels, or rate filings, and to summarize any relevant findings from state insurance examinations. The legislative auditor may hire outside experts such as actuaries, forensic accountants, and insurance finance specialists, and must submit a written report with findings and any recommendations by September 1, 2026.
SCR 61 does not change insurance statutes directly, but it authorizes a legislative study that could inform future regulatory or legislative action. It directs the Legislative Auditor and Department of Insurance to gather and analyze insurer financial transaction data, including information tied to annual statements and filings required by Act 488 of 2024, and to report on possible effects on insurer solvency, surplus, and rates. The resolution could affect insurers, affiliated companies, and policyholders by increasing scrutiny of insurer-affiliate transactions in Louisiana’s property and auto insurance markets.
The resolution is framed in a strongly oversight-oriented and consumer-protection tone. Its findings section reflects concern about repeated natural disasters, rising premiums, insurer insolvencies, reduced coverage availability, and the possibility that affiliate transactions may be contributing to higher costs or weaker insurer finances. Because there were no recorded committee transcripts or votes provided, there is no direct evidence of opposition or support from lawmakers in the available record, but the text itself suggests a generally favorable posture toward transparency and accountability.
The main point of contention implied by the resolution is whether payments from insurers to affiliated entities—such as MGAs, holding companies, and service providers—are legitimate business expenses or practices that may inflate losses, reduce surplus, or shift costs onto policyholders. The bill specifically targets the relationship between insurer financial practices and rate increases, which could draw concern from insurers and affiliates that may view the study as burdensome or as presuming wrongdoing. On the other hand, consumer advocates and lawmakers concerned about market stability are likely to support the inquiry as a way to improve transparency and identify drivers of high premiums.