Rule 7 of the Louisiana Insurance Code is being repealed, according to a summary report to the state senate filed by Louisiana Insurance Commissioner Timothy Temple on Feb. 4.
The Louisiana Department of Insurance (LDI) announced its intention to repeal the rule in November 2024. Rule 7 was originally implemented to set uniform guidelines and requirements applicable to legal expense insurers operating in the state, including those practicing in areas such as family law, criminal defense and real estate disputes.
The repeal was effective on April 20.
In the summary report filed with the state senate, LDI explained that as Rule 7 is no longer being used as legal guidance and is not relevant to the state’s insurers, it could be considered obsolete and repealed in its entirety.
The LDI summary report went on to say that the department did not expect any financial or regulatory impact to be felt by civilian or government entities in the state as a result of the rule’s repeal.
“The proposed rule (repeal) is not anticipated to result in implementation costs or savings to the state or local governmental units,” the LDI summary report reads. “The proposed rule change repeals Rule 7: Legal Expense Insurers, which was implemented to standardize the forms used in the billing and reimbursement of healthcare, reduce the number of forms utilized, and increase efficiency in the reimbursement of healthcare through standardization. There is insufficient legal authority at this time to support Rule 7; therefore, it is obsolete and being repealed in its entirety.”