Louisiana Insurance Regulation

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