RS 22:68 Books and records of domestic insurer; securities
§68. Books and records of domestic insurer; securities
A. Every domestic and redomesticated insurer shall keep its books, records, documents, accounts, and vouchers in such manner that its financial condition, affairs, and operations can be ascertained and so that its financial statements filed with the commissioner can be readily verified and its compliance with the law determined. Such insurer may cause any or all such books, records, documents, accounts, and vouchers to be photographed or reproduced on film. Any such photographs, microphotographs, optical imaging, or film reproductions of any original books, records, documents, accounts, and vouchers shall for all purposes be considered the same as the originals thereof and a transcript, exemplification, or certified copy of any such photograph, microphotograph, optical imaging, or film reproduction shall for all purposes be deemed to be a transcript, exemplification, or certified copy of the original. Any original so reproduced may thereafter be disposed of or destroyed, as provided for in Subsection B of this Section, if provision is made for preserving and examining such reproductions.
B. All such original books, records, documents, accounts, and vouchers, or such reproductions thereof, of the home office of any domestic company or of any principal United States office of a foreign or alien company located in this state shall be preserved and kept available in this state for the purpose of examination and until authority to destroy or otherwise dispose of such records is secured from the commissioner. At a minimum all such original records shall be maintained for the period commencing on the first day following the last period examined by the commissioner through the subsequent examination period, or three years, whichever is greater. Such original records may, however, be kept and maintained outside this state if, according to a plan adopted by the company's board of directors and approved by the commissioner, it maintains suitable records in lieu thereof.
C. Every domestic company shall keep its securities within the state of Louisiana except where:
(1) On deposit with other states of the United States of America or political subdivisions thereof.
(2) On deposit with foreign countries where the company is licensed to transact an insurance business.
(3) Required for the normal transaction of the company's business and approved by the commissioner.
D. Any domestic company may maintain for its securities a limited agency, custodial or depository account, or other type of account for the safekeeping of those securities; collecting the income from those securities; and providing supportive accounting services relating to such safekeeping and collection; all provided the domestic company maintains full investment discretion over those securities. Such account shall be with either (1) a bank, qualified under state law to administer trusts in this state, and operating as described in R.S. 6:534(B); or (2) a member of the National Association of Securities Dealers, subject to the jurisdiction of the Securities and Exchange Commission, maintaining membership in the Securities Investors Protection Corporation, and having an agency office in this state. The bank or the National Association of Securities Dealers member, in safekeeping such securities, shall have all the powers, rights, duties, and responsibilities as it has under state law for holding securities in its fiduciary accounts. The commissioner of insurance is hereby authorized to promulgate rules and regulations pursuant to this Subsection.
E. Any director, officer, agent, or employee of any company who destroys any such books, records, or documents without the authority of the commissioner in violation of this Section or who fails to keep the books, records, documents, accounts, and vouchers required by this Section shall be fined not more than five thousand dollars.
F. The commissioner of insurance may require that any domestic or redomesticated insurer maintaining its books, records, documents, accounts, and vouchers outside of this state pursuant to this Section shall, upon notice of a pending examination by the commissioner, deposit with the Department of Insurance such funds as the commissioner shall estimate as necessary for the conduct of the examination, including all expenses as set forth in R.S. 22:1985. The funds so deposited shall be maintained by the commissioner in a separate account for the purpose of paying such expenses during the progress of the examination as he may deem appropriate. The commissioner may require additional deposits where the expenses exceed the original estimate.
Added by Acts 1979, No. 115, §1; Acts 2001, No. 302, §1; Acts 2004, No. 342, §1; Redesignated from R.S. 22:39 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 503, §1.