The Louisiana Legislature convened on April 30, 2025, to discuss Senate Bill 199, aimed at enhancing the authority of the Department of Insurance to combat insurance fraud. The bill proposes significant amendments to existing statutes, broadening the definition of the business of insurance to include not only the sale and solicitation of policies but also policy advertisements and claims resolution.

Senator Myers, the bill's sponsor, emphasized that the legislation is designed to protect consumers from fraudulent practices, particularly in the wake of disasters. For instance, it would empower the Department of Insurance to swiftly shut down unlicensed contractors who mislead homeowners into believing they can negotiate insurance claims on their behalf. Another example cited was the rise of fake insurance policies sold online, which the bill aims to address by allowing quicker regulatory intervention.

The meeting also included discussions on amendments to the bill, which clarify the authority of the commissioner to act against unlicensed individuals engaging in deceptive insurance activities while ensuring that licensed professionals are not unfairly targeted. The amendments aim to modernize the language and align it with state administrative standards.

Concerns were raised during the meeting regarding the potential implications of the bill on legal professionals. Some legislators questioned how the bill would delineate between lawful legal practice and fraudulent activities, particularly in cases where lawyers may be involved in deceptive practices. The Department of Insurance representatives clarified that the bill is narrowly focused on insurance fraud and does not intend to regulate the practice of law.

The committee adopted the proposed amendments, and further technical amendments were discussed to ensure clarity in the bill's language. The overall goal of Senate Bill 199 is to provide the Department of Insurance with the necessary tools to effectively combat fraud and protect Louisiana consumers, while also addressing concerns about the scope of its authority over legal professionals. The bill is expected to move forward for further consideration in the legislative process.