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Regular Session, 2010
SENATE BILL NO. 669
BY SENATOR HEBERT
INSURERS. Provide for biannual renewal of surplus lines broker license, commissions and
continuing education hours. (8/15/10)
AN ACT1
To amend and reenact R.S. 22:1547(I)(2) and 1573(G) and to enact R.S. 22:1557(A)(4) and2
1574, relative to insurance producers; to provide with respect to biannual renewal of3
surplus lines broker license; to provide for commissions; to provide for carry forward4
of continuing education hours; to provide for producer training requirements to sell5
long-term care insurance; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 22:1547(I)(2) and 1573(G) are hereby amended and reenacted and8
R.S. 22:1557(A)(4) and 1574 are hereby enacted to read as follows: 9
§1547. License10
* * *11
I. Any licensed property and casualty insurance producer maintaining an12
office at a designated location in this state and having at least two years experience13
in the insurance business with an insurer or as an insurance producer may be licensed14
as a surplus lines broker as follows:15
* * *16
(2) The applicant must submit the required license fee, as authorized by R.S.17 SB NO. 669
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words in boldface type and underscored are additions.
22:821, for each license year during any part of which the license is in effect. The1
license shall remain in force until the annual biannual renewal date.2
* * *3
§1557. Commissions4
A.5
* * *6
(4) An insurance producer may pay or assign commissions, service fees,7
brokerage fees or other valuable consideration to an insurance agency or to8
persons who are not licensed as producers in Louisiana but are licensed in their9
state of domicile and act only to assist producers licensed in this state in placing10
business with insurers authorized to do business in this state.11
* * *12
§1573. Continuing education requirements13
* * *14
G. No more than ten excess hours of approved property and casualty15
insurance instruction and no more than six ten excess hours of approved life, health,16
and accident insurance instruction accumulated during the previous renewal period17
may be carried forward and applied to the continuing education requirement for the18
next renewal period.19
* * *20
§1574. Producer training requirements to sell long-term care insurance21
A. (1) An individual shall not sell, solicit or negotiate long-term care22
insurance unless the individual is licensed as an insurance producer for health23
and accident or life and has completed a one-time training course. The training24
shall meet the requirements set forth in Subsection B of this Section.25
(2) An individual already licensed and selling, soliciting or negotiating26
long-term care insurance on August 15, 2010 may not continue to sell, solicit or27
negotiate long-term care insurance unless the individual has completed a one-28
time training course as set forth in Subsection B of this Section, within one year29 SB NO. 669
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from August 15, 2010.1
(3) In addition to the one-time training course required in Paragraphs2
(1) and (2) above, an individual who sells, solicits or negotiates long-term care3
insurance shall complete ongoing training as set forth in Subsection B of this4
Section.5
(4) The training requirements of Subsection B of this Section may be6
approved as continuing education courses under R.S. 22:1573.7
B. (1) The one-time training required by this Section shall be no less than8
eight hours and the ongoing training required by this Section shall be no less9
than four hours every two years.10
(2) The training required under Paragraph (1) of this Subsection shall11
consist of topics related to long-term care insurance, long-term care services12
and, if applicable, qualified state long-term care insurance partnership13
programs, including, but not limited to:14
(a) State and federal regulations and requirements and the relationship15
between qualified state long-term care insurance partnership programs and16
other public and private coverage of long-term care services, including17
Medicaid;18
(b) Available long-term services and providers;19
(c) Changes or improvements in long-term care services or providers;20
(d) Alternatives to the purchase of private long-term care insurance;21
(e) The effect of inflation on benefits and the importance of inflation22
protection; and23
(f) Consumer suitability standards and guidelines.24
(3) The training required by this Section shall not include training that25
is insurer or company product specific or that includes any sales or marketing26
information, materials, or training, other than those required by state or federal27
law.28
C. (1) Insurers shall obtain verification that a producer receives training29 SB NO. 669
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required by Subsection A of this Section before a producer is permitted to sell,1
solicit or negotiate the insurer's long-term care insurance products, maintain2
records subject to the state's record retention requirements, and make such3
verification available to the commissioner upon request.4
(2) Insurers shall maintain records with respect to the training of its5
producers concerning the distribution of its partnership policies that will allow6
the state insurance department to provide assurance to the state Medicaid7
agency that producers have received the training contained in Subparagraph8
(B)(2)(a) of this Section as required by Subsection A of this Section and that9
producers have demonstrated an understanding of the partnership policies and10
their relationship to public and private coverage of long-term care, including11
Medicaid, in this state. The aforementioned records shall be maintained in12
accordance with the state's record retention requirements and shall be made13
available to the commissioner upon request.14
D. The satisfaction of said training requirements in any state shall be15
deemed to satisfy the training requirements in this state.16
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Cheryl Horne.
DIGEST
Present law requires and applicant for a surplus lines broker license to submit the required
license fee for each license year during any part of which the license is in effect. Requires
the license to remain in force until the annual renewal date.
Proposed law changes the license to remain in force until the biannual renewal date.
Proposed law permits an insurance producer to pay or assign commissions, service fees,
brokerages or the valuable consideration to an insurance agency or to persons who are not
licensed as producers in the state but are licensed in their state of domicile and who acts only
to assist licensed producers in placing business with insurers authorized to do business in the
state.
Present law provides that no more than ten excess hours of approved property and casualty
insurance instruction and no more than six excess hours of approved life, health, and
accident insurance instruction to be carried forward and applied to the continuing education
requirement for the next renewal period.
Proposed law changes the amount of approved life, health and accident insurance instruction
to be carried forward to ten excess hours. SB NO. 669
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law prohibits an individual from selling, soliciting, or negotiating long-term care
insurance unless the individual is licensed as an insurance producer for health and accident
or life and has completed a one-time training course.
Proposed law prohibits an individual already licensed and selling long-term care insurance
on the effective date of this Act from continuing to sell, solicit or negotiate long-term care
insurance unless the individual has completed a one-time training course within one year
from August 15, 2010. Requires the one-time training course to be no less than eight hours
and ongoing training of no less than four hours every two years.
Proposed law requires the training by an individual who sells, solicits or negotiates long-
term care insurance to consist of topics related to long-term care insurance partnership
programs, including, but not limited to:
(a)State and federal regulations and requirements and the relationship between qualified
state long-term care insurance partnership programs and other public and private
coverage of long-term care services, including Medicaid;
(b)Available long-term services and providers;
(c)Changes or improvements in long-term care services or providers;
(d)Alternatives to the purchase of private long-term care insurance;
(e)The effect of inflation on benefits and the importance of inflation protection; and
(f)Consumer suitability standards and guidelines.
Proposed law prohibits the required training to include training that is insurer or company
product specific or that includes any sales or marketing information, materials, or training,
other than those required by state or federal law.
Proposed law requires insurers to obtain verification that a producer receives the required
training before being permitted to sell, solicit or negotiate the insurer's long-term care
insurance products, maintain records subject to the state's record retention requirements, and
make that verification available to the commissioner upon request.
Proposed law requires satisfaction of these training requirements in any state to be deemed
to satisfy the training requirements in this state.
Effective August 15, 2010.
(Amends R.S. 22:1547(I)(2) and 1573(G); adds R.S. 22:1557(A)(4) and 1574)