HLS 11RS-705 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2011
HOUSE BILL NO. 137
BY REPRESENTATIVE CORTEZ
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
INSURERS/AGENTS: Authorizes producer compensation in the form of fees in certain
circumstances
AN ACT1
To enact R.S. 22:1567, relative to producer compensation; to authorize producers and2
certain policyholders to negotiate any combination of commissions and fees, or fees3
in lieu of commissions, for certain insurance coverages; and to provide for related4
matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 22:1567 is hereby enacted to read as follows: 7
ยง1567. Producers' compensation in form of fees; commercial property and casualty8
insurance; criteria for policyholders9
Notwithstanding any other provision of this Title to the contrary, an insurance10
producer and a property and casualty insurer may negotiate any combination of11
commissions and fees, or fees in lieu of commissions, to compensate the insurance12
producer for the placement of commercial property and casualty insurance coverages13
if the commercial insurance policyholder meets any one of the following criteria:14
(1) Has total annual property and casualty insurance premiums in excess of15
five hundred thousand dollars.16
(2) Obtains insurance coverage with a per occurrence or per claim deductible17
or self-insured retention of fifty thousand dollars or more for workers' compensation,18
general liability, or automobile insurance coverages.19
(3) Has a net worth in excess of twenty-five million dollars.20
(4) Qualifies as a self-insurer with the state of Louisiana.21 HLS 11RS-705 ORIGINAL
HB NO. 137
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Cortez HB No. 137
Abstract: Authorizes producers and certain policyholders to negotiate any combination of
commissions and fees, or fees in lieu of commissions, for certain commerical
property and casualty insurance coverages.
Proposed law provides that, notwithstanding any other provision of law in the Insurance
Code to the contrary, an insurance producer and a property and casualty insurer may
negotiate any combination of commissions and fees, or fees in lieu of commissions, to
compensate the insurance producer for the placement of commercial property and casualty
insurance coverages if the commercial insurance policyholder meets any one of the
following criteria:
(1)Has total annual property and casualty insurance premiums in excess of $500,000.
(2)Obtains insurance coverage with a per occurrence or per claim deductible or self-
insured retention of $50,000 or more for workers' compensation, general liability,
or automobile insurance coverages.
(3)Has a net worth in excess of $25 million.
(4)Qualifies as a self-insurer with this state.
(Adds R.S. 22:1567)