Individual Producer
a person licensed to quote insurance policies, market, and sell insurance products, and consult other with regard to insurance.
Producer Requirements
1. Be at least 18 year of age
2. Reside in or work mainly from an office located in State
3. Complete Pre-licensing education required to prepare for state exam
4. Paid their fees and submitted an application (Form 1546A)
5. Successfully pass their requir
Business Entity Producer
A legal business entity may also be a producer and conduce insurance business in the state
a. must have producer's license in business name
b. business must first have a licensed individual producer
c. have several other pieces of documentation to apply (
License Expiration P&C
Every 2 years odd numbered years (2013, 2015) by the last day of your birth month
License Expiration LH&A
Every 2 years even numbered years (2014, 2016) by the last day of your birth month
License Term and Renewal
must complete certain number of hours in continuing education, maintain satisfactory conduct, send in renewal app and fee
License Renewal
renew by sending in application and fee to La. Dept of Insurance by the last day of their own birth month
License Renewal Fee
$50
Exceptions to Licensing Requirements
The Producer Licensing Model Act has a standard set of exemptions that most state follow. Generally, if someone solicits insurance, they do need a license.
Change of Address
If a producer changes their mailing, work, or home address, the Department must be notified within 10 days or face a $50 fine
Non-Resident
Individuals not living in Louisiana and those without an office in Louisiana may get a license to sell insurance in Louisiana.
Assumed Names
A Producer must notify the Department in writing BEFORE using a name other than their legal name, or the name that appears on their license. Fine $250 up to $5000.
Temporary License
Are valid only for 180 days and may be granted in the following three circumstances:
1. Death
2. Disability
3. Active Military Service
Reapplication
If a producers license is revoked:
1. accepted the revocation without asking for review or appeal of the decision and apply after one (1) year.
2. If appealed the decision and revocation was upheld, may apply for a license after five (5) years.
Appointments
An insurer must appoint a producer to sell their products before the producer can start selling them. The insurer files notice with them Commissioner with 15 days of the contract. The Commissioner lets the insurer know the appointment is approved within 3
Renewal of Appointment
Is due on or before March 1st of every year. Fee is $20.00. Lists received after March 1st will be charged a late fee of $10.00.
Termination of Appointment
An insurer can terminate an appointment and has 30 days from the termination date to notify the department. For fraud, the time reduces to 15 days. Producer has to send comments within 30 days of receiving the termination from the insurer.
Reporting of Actions
If any court, judge, jurisdiction or governmental agency in Louisiana or anywhere takes any administrative action against a producer, that producer must report this final disposition of ruling to the Commissioner within 30 days of the disposition.
Continuing Education (CE)
Producers must submit the correct amount of required hours to the Department every renewal period according the license they hold.
L,H, & A (CE)
You must submit 24 hours every renewal period of 2 years (even years). Three of the hours must be on ethics.
P & C (CE)
You must submit 24 hours every renewal period of 2 years (odd years). Three of the hours must be in flood insurance and three hours on ethics.
Rollover excess hours
Up to 10 hours of excess P&C topics and up to 10 hours of excess LHA topics can be rolled over to the next renewal period.
CLU
Chartered Life Underwriter
CPCU
Chartered Property and Casualty Underwriter
CIC
Certified Insurance Counselor
Disciplinary Actions
The Commissioner has the authority to take against anyone in the insurance business if they found in violation of the Louisiana Insurance Code.
Hearings
When someone accuses the producer of violating the Insurance Code a hearing must be held within 30 days of the demand. It can be postponed if both parties agree, but once the demand is on record, the hearing must happen in more than 60 days of the origina
10
The number of days notice of the time and place of the hearing
30
The number of days the Commissioner has to finalize a decision and determine his orders for the producer and all parties involved from the hearing.
30
The number of days anyone wanting to appeal The Commissioner decision from then to demand a review hearing.
Cease and Desist
This is the legal term for the order to STOP. It is an official legal document that will required an individual to stop doing something.
Certificate of Authority
An insurer must first get this from the Commissioner to sell insurance products in this state. This makes the insurer an admitted company and proves that the Department of Insurance finds the company financially sound and structured well enough to meet th
Insolvency
If an insurer finds themselves financial difficulty, the Department of Insurance will take control of the company financial management. If they believe the company can be put back in sound financial shape, they will try rehabilitation. If not, they will b
Advertising
The state regulates the marketing of insurance policies. Material cannot be misleading and cannot have illustrations that are considered deceptive.
Controlled Business
If a producer only get into the insurance business in Louisiana to sell only to themselves, their family and/or employer.
Shared Commissions
No license, No commission! Paying and accepting a commission when you have no insurance license is illegal. Persons found breaking this law are fined between $1000 and $5000 and/or receive a maximum of 2 years in jail.
Payment to unlicensed entities
Any unlicensed business entity paying or accepting illegal commissions will be fined between $2000.00 and $50,000.00 and/or receive a maximum of 3 years in jail. Any violator involved with a license will have it suspended or revoked.
Misrepresentation
Distributing misleading or false information and orally deceiving the public with regard to a policy's terms and benefits is illegal.
False Advertising
Any advertising, print, multimedia, internet or otherwise cannot deceive the public in anyway and misrepresenting terms, benefits, advantages, dividends, financial strength, or misrepresenting the intent of a policy, loans or assignments, or saying an ins
Twisting
When a producer influences a consumer to replace a present policy with a different one. This only acceptable if the producer gave the consumer better coverage or a better deal.
Churning
Using misrepresentation to replace a competitor's policy with one from a company represented by the producer to get the larger first-year commission, even if it is not in the best interest of the consumer.
Defamation
oral or written statements trying to injure a person or entity is prohibited, especially when it is critical of the financial status of a person or insurer.
Boycott, coercion or intimidation
illegal acts intended to stop fair trade or monopolize insurance business are prohibited.
False Financial Statements
Intentionally deceiving the public or a regulator as to the financial standing of an insurer to prohibited.
Unfair Discrimination
Changing rates based on martial status, race, color, national origin, creed or ancestry within the same mortality class is illegal.
Rebates
Offering and accepting any incentives for buying a policy, including money, unauthorized discounts or money back, special favors or personal services, are all illegal acts.
Examination of Records
The Commissioner can examine anyone in the business of insurance in the state at anytime. The Department will review insurance companies for financial stability at least once every 5 years. An investigation may be prompted on an individual producer if 3 c
Insurance Fraud
The Department can conduct background checks on all applying to sell insurance in the state and may deny licenses or certificates of authority for felony convictions. If any violations are found, the information may be forwarded to the Department of Justi
Fraud
is the intent to deceive by providing materially false information to someone in a business transaction.
Privacy of Consumer Financial Informaion
Regulation states that no information can be accessed by insurers without the person's consent and prevents insurers releasing this information to anyone without consent from the insured.
Fair Credit Reporting Act (FCRA)
This federal law was enacted in 1971 and is administered by the Federal Trade Commission. It makes clear that consumers have the right to know what information is being circulated about them and that the information is accurate and relevant for purposes t
Consumer Reports
Equifax, Experian, Dun & Bradstreet, and agencies like these provide information regarding credit, character, and habits of a consumer.
Investigative Consumer Reports
Information for these reports may come directly from interviews with friends, neighbors and affiliates of the consumers and cannot be made without consent with 3 days of the request. When a consumer wants information in this report, is must be sent to the
Fraud and false statement
Any person intentionally making fraudulent or false statements in insurance transactions involving interstate commerce are subject to federal level fines and/or imprisonment for breaking this very specific federal law.
The Violent Crime Control and Law Enforcement Act of 1994
States that anyone that has committed a felony must receive written authority from a regulatory official, Commissioner, Deputy Commissioner, etc., before working in insurance that affects interstate commerce - called a 1033 waiver. This act makes it illeg
McCarran-Ferguson Act
Said that federal government had the right to regulate insurance only to the extent it is not regulated by state law. In effect, the insurance industry is exempt from most federal anti-trust laws.
Gramm-Leach-Bliley Act (GLBA)
Officially titled the Financial Services Modernization Act of 1999, removed the barriers between commercial banking, investment backing and insurance. Financial holding companies can combine any financial related activities. They still have to answer to r