The Louisiana Department of Insurance issued a notice of intent to amend 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 way fees are allocated has been amended. First, $30,000 is withheld annually to cover the expense of the collection of the fees and the operation of the Department of Insurance. $187,000 is to be 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.

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.