Health and Accident or Sickness Insurance

Requirements (22:1543)

The term "(22:1543)" most commonly refers to Louisiana Revised Statute § 22:1543, which requires any person acting as an insurance producer in the state to be licensed by the Louisiana Department of Insurance. In California, Civil Code § 1543 addresses the release of joint debtors, stating that releasing one does not extinguish the obligations of the others unless they are only guarantors. 

Types of licenses (22:1547, 1962(F))

The license shall state the name and business address of the licensee, date of issuance, the renewal or expiration date, the line or lines of insurance.

F.  "Producer" means a person required to be licensed under the laws of this state to sell, solicit, or negotiate insurance, and includes all persons or business entities otherwise referred to in this Code as "insurance agent", "agent", "insurance broker", "broker", "insurance solicitor", "solicitor", or "surplus lines broker

Individual producer (22:1542(6), 1546(A))

“Limited line credit insurance producer” shall mean an insurance producer who sells, solicits, or negotiates one or more forms of limited line credit 

Business entity 1546(B))

 

   

            

B.(1)(a) A business entity acting as an insurance producer shall obtain an insurance producer license.

            (i) Every member, partner, officer, and director of a resident business entity shall register with the Department of Insurance under the business entity's license. In addition, any person who controls directly or indirectly ten percent or more of a producer business entity shall also register with the Department of Insurance under the business entity's license.

            (ii) A non-resident business entity shall provide to the commissioner upon request the name of every member, partner, officer, director, and person who controls directly or indirectly ten percent or more of the non-resident business entity.

            (iii) For purposes of this Section, "control" has the same meaning as provided in R.S. 22:691.2.

            (b) Every individual who is personally engaged in soliciting or negotiating policies in this state shall be registered with the Department of Insurance under such business entity's license and shall also qualify as an individual licensee for any line of insurance that the business entity is licensed to transact.

            (c) The business entity licensee shall within thirty days notify the commissioner of any change of status of an individual who is registered under the business entity license.

            (d) Any business entity operating at more than one location shall notify the commissioner of each permanent branch location address within thirty days from the date of the opening of the new location. There shall be at least one individual licensed insurance producer registered with the Department of Insurance for each branch location.

            (e) Any business entity which fails to comply with this Subsection shall be subjected to a fine of one hundred dollars for each violation. Any entity against which a fine has been levied shall be given due notice of such action. Upon receipt of this notice, the entity may apply for and shall be entitled to a hearing in accordance with Chapter 12 of this Title, R.S. 22:2191 et seq.

            (2) Application shall be made using the Uniform Business Entity Application. Before approving the application, the commissioner of insurance shall find that:

            (a) The business entity has paid the fees set forth in R.S. 22:821.

            (b) The business entity has designated one or more licensed individual producers responsible for the business entity's compliance with the insurance laws, rules, and regulations of this state.

            (3) Repealed by Acts 2009, No. 485, §3, eff. Jan. 1, 2010.

            (4) When completing the background information portion of the Uniform Business Entity Application pertaining to the disclosure of certain lawsuits or arbitration proceedings, corporations, banks, partnerships, or other business entities, and their executive officers and directors, shall disclose those proceedings occurring within the past five years which are considered to be material under generally accepted accounting principles for purposes of financial statement disclosure.

Resident versus nonresident (22:1546, 1548, 1560)

§1548. Nonresident licensing

            A. Unless denied licensure pursuant to R.S. 22:1554, a nonresident person shall receive a nonresident producer license if:

            (1) The person is currently licensed as a resident and in good standing in his home state.

            (2) The person has submitted the proper request for licensure and has paid the fees required by R.S. 22:821.

            (3) The person has submitted or transmitted to the commissioner of insurance the application for licensure that the person submitted to his home state, or in lieu of the same, a completed Uniform Application.

            (4) The person's home state awards nonresident producer licenses to residents of this state on the same basis.

            B.(1) The commissioner of insurance may verify the producer's licensing status through the producer database maintained by the National Association of Insurance Commissioners, its affiliates, or subsidiaries.

            (2) Whenever, by the laws or regulations of any other state or jurisdiction, any limitation of rights and privileges, conditions precedent, or any other requirements are imposed upon residents of this state who are nonresident applicants or licensees of such other state or jurisdiction in addition to, or in excess of, those imposed on nonresidents under this Subpart, the same requirements shall be imposed upon such residents of such other state or jurisdiction.

            (3)(a) The commissioner of insurance shall not issue a license to any nonresident applicant until such applicant has filed forms approved by the commissioner which designate the commissioner as his true and lawful agent, upon whom may be served all lawful process in any action, suit, or proceeding instituted by or on behalf of any interested person arising out of the applicant's insurance business in this state. The designation shall constitute an agreement that such service of process has the same legal force and validity as personal service of process upon the person in the state.

            (b) The service of process upon any such licensee in any action or proceeding in any court of competent jurisdiction may be made by a party serving the commissioner of insurance with appropriate copies thereof and the payment to him of the fee authorized by R.S. 22:821.

            (c) The commissioner of insurance shall, within ten days of being served, forward a copy of such process by registered or certified mail, return receipt requested, to the licensee at his last known address of record or principal place of business, and the commissioner shall maintain copies of all such processes so served upon him.

            (4) The service of process upon any such licensee in any action or proceeding instituted by the commissioner of insurance under this Subpart shall be made by the commissioner by mailing such process by registered or certified mail, return receipt requested, to the licensee at his last known address of record or principal place of business.

            C. A nonresident producer who moves from one state to another state or a resident producer who moves from this state to another state shall file a change of address and provide certification from the new resident state within thirty days of the change of legal residence. The change of address shall include the producer's current and prior addresses. No fee or license application is required.

            D.(1) Notwithstanding any other provision of this Subpart, an insurance producer licensed as a surplus lines broker in his home state shall receive a nonresident surplus lines broker license pursuant to Subsection A of this Section.

            (2) Except as provided by Subsection A of this Section, nothing in this Section otherwise amends or supersedes any provision of R.S. 22:431 et seq.

            E. Notwithstanding any other provision of this Subpart, a person licensed as a limited line credit insurance or other type of limited lines producer in his home state shall receive a nonresident limited lines producer license, pursuant to Subsection A of this Section, granting the same scope of authority as granted under the license issued by the producer's home state. For the purposes of this Subsection, limited line insurance is any authority granted by the home state which restricts the authority of the licensee to less than the total authority prescribed in the associated major lines pursuant to R.S. 22:1547(A)(1) through (6).

            F. Except as provided in Subsection C of this Section, as a condition of continuation of a nonresident producer license issued pursuant to this Section, a nonresident producer shall maintain in good standing a current resident producer license in his home state. A nonresident producer license issued pursuant to this Section shall cease to be current or in good standing in this state, without further action by the commissioner, if the home state resident producer license ceases to be current or in good standing.

Temporary (22:1553)

A.  The commissioner of insurance may issue a temporary insurance producer license for a period not to exceed one hundred eighty days without requiring an examination if the commissioner deems that the temporary license is necessary for the servicing of an insurance business in the following cases:

(1)  To the surviving spouse or next of kin, or to the administrator or executor or employee of a licensed insurance producer who is deceased, or to the spouse, next of kin, employee, legal guardian, or other court-appointed personal representative of a licensed insurance producer who becomes mentally or physically disabled, to allow adequate time for the sale of the insurance business owned by the producer, or for the recovery or return of the producer to the business, or to provide for the training and licensing of new personnel to operate the producer's business.

(2)  To a member or employee of a business entity licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or the license.

(3)  To the designee of a licensed insurance producer entering active service in the armed forces of the United States of America.

(4)  In any other circumstance where the commissioner deems that the public interest will best be served by the issuance of this license.

B.  The commissioner of insurance may by order limit the authority of any temporary license in any way deemed necessary to protect insureds and the public.  The commissioner may require the temporary licensee to have a suitable sponsor who is a licensed producer or insurer and who assumes responsibility for all acts of the temporary licensee, and may impose other similar requirements designed to protect insureds and the public. The commissioner may by order revoke a temporary license if the interest of insureds or the public are endangered.  A temporary license may not continue after the owner or the personal representative disposes of the business.

Expiration (22:1547(B))

B. Subject to the requirements of Subsection C of this Section, an insurance producer license shall remain in effect, unless revoked, suspended, or denied renewal or reinstatement, as long as all applicable fees are paid and education requirements are satisfied, until the license expires or is surrendered by the holder thereof.

Renewal (22:1547(C)

C.(1) Every licensed producer shall file an application for renewal of his license every two years, by notifying the commissioner of insurance, by methods prescribed by the commissioner, of the licensee's intention to continue his license as either producer, limited lines producer, or surplus lines producer.

(2) Any licensee who fails to file timely for license renewal shall be charged a late fee as authorized by R.S. 22:821.

(3) Prior to the filing date for application for renewal of a license, the licensee shall comply with continuing education requirements in R.S. 22:1573 for the lines of insurance being renewed. Such producer shall file with the commissioner of insurance, by a method prescribed by the commissioner, satisfactory certification of completion of the continuing education requirements. Any failure to fulfill the continuing education requirements shall result in the expiration of the license. Nothing in this Subsection shall authorize the administration or management, under contract or otherwise, of the continuing education program except by the employees of the department.

Change of name, address, telephone number (22:1547(G))

G. Every licensee shall notify the commissioner, by any means acceptable to the commissioner, of any change of address, legal name, or information submitted on the application within thirty days of the change. Failure to file such change within the required time shall result in the imposition of a fifty-dollar penalty per violation. Any person against whom a penalty has been levied shall be given due notice of such action. Upon receipt of this notice, the licensee may apply for and shall be entitled to a hearing in accordance with Chapter 12 of this Title, R.S. 22:2191 et seq.

Assumed names (22:1552)

A.  An insurance producer doing business under any name other than the producer's legal name is required to notify the commissioner of insurance prior to using the assumed name.  Prior to the use of or changes to any trade name or names, an insurance producer shall provide written notification of such use or change to the commissioner, on a form prescribed by the commissioner.  A letter of registration from the secretary of state shall accompany the application for a trade name.

B.  The use by any insurance producer of a nonapproved trade name shall subject such person to a fine not exceeding two hundred fifty dollars.  Additionally, if the insurance producer continues to utilize a nonapproved trade name for ten or more days after being notified by the commissioner to cease using the nonapproved trade name, the insurance producer will be subject to an additional fine not to exceed five thousand dollars.  If applicable, an insurance producer must comply with the provisions of R.S. 51:281 et seq.

Reporting of actions (22:1563)

A.  An insurance producer shall report to the commissioner of insurance any administrative action taken against the producer in another jurisdiction or by another governmental agency in this state within thirty days of the final disposition of the matter.  This report shall include a copy of the order, consent to order, or other relevant legal documents.

B.  Within thirty days of a conviction in district court of an offense under R.S. 22:1554(A)(7), a producer shall report such conviction to the commissioner and provide a copy of the bill of information or indictment.

C.  Without in any way limiting or affecting any other civil or criminal remedies or consequences, any person who intentionally withholds or intentionally fails to timely report information as required by this Section shall be guilty of violating R.S. 22:1554(A)(14)

Continuing education requirements including exemptions and penalties (37:XI:10.703, .705 & Rule 10.711)

Louisiana insurance producers need 24 hours of continuing education (CE) every two years, including 3 hours on ethics and 3 hours on flood insurance. Exemptions are available for active military duty and for licens