HLS 11RS-705 ENGROSSED
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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 insurers or policyholders to negotiate any combination of commissions, fees,3
or fees in lieu of commissions, for certain insurance coverages; and to provide for4
related 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 law to the contrary, an insurance10
producer may negotiate with both or either a property and casualty insurer or a11
commercial policyholder, including a governmental entity pursuant to R.S.12
42:1123(37)(b), to compensate the insurance producer for the placement of13
commercial property and casualty insurance coverages by any combination of14
commissions, fees, or fees in lieu of commissions if the commercial insurance15
policyholder, including a governmental entity pursuant to R.S. 42:1123(37)(b), meets16
one of the following criteria:17
(1) Has total annual property and casualty insurance premiums in excess of18
five hundred thousand dollars.19 HLS 11RS-705 ENGROSSED
HB NO. 137
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(2) Obtains insurance coverage with a per occurrence or per claim deductible1
or self-insured retention of fifty thousand dollars or more for workers' compensation,2
general liability, or automobile insurance coverages.3
(3) Has a net worth in excess of twenty-five million dollars.4
(4) Qualifies as a self-insurer with the state of Louisiana.5
(5) Is a governmental entity that had a contract prior to August 9, 2010, with6
an insurance producer on a stipulated fee basis for the placement of commercial7
property and casualty insurance coverages.8
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, fees, or fees in lieu of commissions, for certain commercial 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.
(5)Is a governmental entity that had a contract prior to August 9, 2010, with an
insurance producer on a stipulated fee basis for the placement of commercial
property and casualty insurance coverages.
(Adds R.S. 22:1567) HLS 11RS-705 ENGROSSED
HB NO. 137
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Insurance to the original
bill.
1. Provided that an insurance producer may negotiate commissions, fees, or fees in
lieu of commissions with both or either a property and casualty insurer or a
commercial policyholder.
2. Added to the list of policyholders who may so negotiate producer compensation
a governmental entity that had a contract prior to August 9, 2010, with an
insurance producer on a stipulated fee basis for the placement of commercial
property and casualty insurance coverages.