HLS 11RS-110 ORIGINAL
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Regular Session, 2011
HOUSE BILL NO. 283
BY REPRESENTATIVE AUBERT
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
INSURANCE: Provides for technical recodification of certain provisions of the La.
Insurance Code
AN ACT1
To amend and reenact R.S. 22:901(A), (B), (C)(1) and (3), and (D)(1)(introductory2
paragraph) and (a) and (2), 902, 904, 905, 906, 907, 910, 912(A), (B)(1), (C),3
(D)(1)(b), (E), and (F), 913, 914, 915(B), 931, 932(B)(introductory paragraph) and4
(1), (D)(introductory paragraph) and (2), and (E), 934, 935, 936(A)(1)(introductory5
paragraph) and (2), (B), (D)(1), (2), and (4), (E), (F)(1), (G)(1), (4), and6
(8)(introductory paragraph) and (b) and (d) through (g), (I)(1), (J)(1), (2), (3), and7
(5), (K)(1)(g) and (h), 941(B)(introductory paragraph) and (6), 942(introductory8
paragraph) and (1), (10)(b), and (11), 943(D)(2), 944(A), 951(A), 952(A)(2),9
(B)(introductory paragraph) and (4), and (J), 961, 1541, 1542(1), (4), (6), (9), (11),10
(14), and (18), 1544(B)(5) through (8) and (D), 1545(I)(1)(introductory paragraph),11
1546(A)(3), (D)(4), and (F), 1547(A)(10), (C)(2), (D), (E), (G), (H), and (I)(3),12
1548(A)(1) and (3), (B)(2) and (3)(b), (D)(2), and (E), 1549(B)(4) and (5), (C), (D),13
(E)(introductory paragraph), (F), and (H), 1550(A)(2), (B)(1) and (d) and (2), (C),14
(D), (E)(introductory paragraph), and (H), 1554(G), 1555, 1556(A), (B), and (C),15
1557(B)(1) and (2), 1558(B)(3) and (4), (C), and (D), 1559(C), (D)(1), and (E)(1),16
1562(C)(1)(b) and (d), (E)(2), and (H)(introductory paragraph) and (4), 1564(A)(2),17
(B)(1)(a), and (C), 1571, 1573(C) through (G), (I)(1)(a), (K), (L), and (M), 1574(A)18
through (D)(1), 1575(C)(2) and (D), 1583, the heading of R.S. 22:1584, 1585(C),19
1591, 1592, 1593(A)(introductory paragraph) and (1), 1594(introductory paragraph),20
1595, 1597, 1598(C), 1599(A) and (C)(introductory paragraph),21 HLS 11RS-110 ORIGINAL
HB NO. 283
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1600(B)(introductory paragraph), 1603(1) and (3), 1604(A)(2), 1605, 1622, 1623(A),1
(B), (D), and (F), 1624, 1625(A) and (H), 1627(A)(2), the heading of Part III of2
Chapter 5 of the Louisiana Revised Statutes of 1950, 1641(introductory paragraph),3
(1)(introductory paragraph), (c), (g), and (j), (4), and (7), 1642(A) and (C), 1644(D),4
1651(B)(6), (D), (H)(1), and (I)(1), 1652, 1654(A)(introductory paragraph) and5
(C)(introductory paragraph), 1657, 1662(6)(a)(introductory paragraph) and (14),6
1664(A) and (C)(2), 1665(A)(introductory paragraph) and (1), 1669, 1670(A)(2) and7
(D), 1671(A), (B)(2), and (C), 1673(C), 1693(A), 1694(A), 1696(A), 1697,8
1698(A)(2) and (D), 1699(A)(3), (B), and (F), 1704(E)(1)(a) and (b), 1706(F), 1722,9
1723(A)(introductory paragraph), (B)(introductory paragraph) and (2), (D), and (F),10
1724(5), 1726(A) and (B), 1727(A)(1), (2), (3), (4)(introductory paragraph), (7), and11
(8), (B)(4), (C), and (F), 1728(6), 1729(A) and (F), 1731(A)(2), 1741, 1747, 1761,12
1763(B), 1767, and 1768; to enact R.S. 22:821(B)(31), (32), and (33), 1557(C),13
1641(8) and (9), and 1766(C); and to repeal R.S. 22:1546(G) and (H), 1566, 1746(E),14
1751, and 1769, all relative to technical recodification of certain provisions of the15
Louisiana Insurance Code, including correction of citations, updates of terms and16
language, reorganization of provisions, elimination of obsolete or ineffective17
provisions, harmonizing of inconsistent provisions, and consolidating all provisions18
authorizing fees; and to provide for related matters.19
Be it enacted by the Legislature of Louisiana:20
Section 1. R.S. 22:901(A), (B), (C)(1) and (3), and (D)(1)(introductory paragraph)21
and (a) and (2), 902, 904, 905, 906, 907, 910, 912(A), (B)(1), (C), (D)(1)(b), (E), and (F),22
913, 914, 915(B), 931, 932(B)(introductory paragraph) and (1), (D)(introductory paragraph)23
and (2), and (E), 934, 935, 936(A)(1)(introductory paragraph) and (2), (B), (D)(1), (2), and24
(4), (E), (F)(1), (G)(1), (4), and (8)(introductory paragraph) and (b) and (d) through (g),25
(I)(1), (J)(1), (2), (3), and (5), (K)(1)(g) and (h), 941(B)(introductory paragraph) and (6),26
942(introductory paragraph) and (1), (10)(b), and (11), 943(D)(2), 944(A), 951(A),27
952(A)(2), (B)(introductory paragraph) and (4), and (J), 961, 1541, 1542(1), (4), (6), (9),28
(11), (14), and (18), 1544(B)(5) through (8) and (D), 1545(I)(1)(introductory paragraph),29 HLS 11RS-110 ORIGINAL
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1546(A)(3), (D)(4), and (F), 1547(A)(10), (C)(2), (D), (E), (G), (H), and (I)(3), 1548(A)(1)1
and (3), (B)(2) and (3)(b), (D)(2), and (E), 1549(B)(4) and (5), (C), (D), (E)(introductory2
paragraph), (F), and (H), 1550(A)(2), (B)(1) and (d) and (2), (C), (D), (E)(introductory3
paragraph), and (H), 1554(G), 1555, 1556(A), (B), and (C), 1557(B)(1) and (2), 1558(B)(3)4
and (4), (C), and (D), 1559(C), (D)(1), and (E)(1), 1562(C)(1)(b) and (d), (E)(2), and5
(H)(introductory paragraph) and (4), 1564(A)(2), (B)(1)(a), and (C), 1571, 1573(C) through6
(G), (I)(1)(a), (K), (L), and (M), 1574(A) through (D)(1), 1575(C)(2) and (D), 1583, the7
heading of R.S. 22:1584, 1585(C), 1591, 1592, 1593(A)(introductory paragraph) and (1),8
1594(introductory paragraph), 1595, 1597, 1598(C), 1599(A) and (C)(introductory9
paragraph), 1600(B)(introductory paragraph), 1603(1) and (3), 1604(A)(2), 1605, 1622,10
1623(A), (B), (D), and (F), 1624, 1625(A) and (H), 1627(A)(2), the heading of Part III of11
Chapter 5 of the Louisiana Revised Statutes of 1950, 1641(introductory paragraph),12
(1)(introductory paragraph), (c), (g), and (j), (4), and (7), 1642(A) and (C), 1644(D),13
1651(B)(6), (D), (H)(1), and (I)(1), 1652, 1654(A)(introductory paragraph) and14
(C)(introductory paragraph), 1657, 1662(6)(a)(introductory paragraph) and (14), 1664(A)15
and (C)(2), 1665(A)(introductory paragraph) and (1), 1669, 1670(A)(2) and (D), 1671(A),16
(B)(2), and (C), 1673(C), 1693(A), 1694(A), 1696(A), 1697, 1698(A)(2) and (D),17
1699(A)(3), (B), and (F), 1704(E)(1)(a) and (b), 1706(F), 1722, 1723(A)(introductory18
paragraph), (B)(introductory paragraph) and (2), (D), and (F), 1724(5), 1726(A) and (B),19
1727(A)(1), (2), (3), (4)(introductory paragraph), (7), and (8), (B)(4), (C), and (F), 1728(6),20
1729(A) and (F), 1731(A)(2), 1741, 1747, 1761, 1763(B), 1767, and 1768 are hereby21
amended and reenacted and R.S. 22:821(B)(31), (32), and (33), 1557(C), 1641(8) and (9),22
and 1766(C) are hereby enacted to read as follows:23
§821. Fees24
* * *25
B. The following fees and licenses shall be collected in advance by the26
commissioner of insurance:27
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(31) Fee for application for insurance producer for specialty limited lines1
credit insurance.2
(a) Initial application if registering twenty or fewer3
employees ...................................$ 250.004
(b) Initial application if registering twenty-one or more5
employees ...................................$1,000.006
(c) Annual renewal fee if registering twenty or fewer7
employees ...................................$ 125.008
(d) Annual renewal fee if registering twenty-one or more9
employees ...................................$ 500.0010
(32) Fee for application for insurance producer for specialty limited lines11
motor vehicle title insurance line.12
(a) Initial application if registering twenty or fewer13
employees ...................................$ 250.0014
(b) Initial application if registering twenty-one or more15
employees ...................................$1,000.0016
(c) Fee for registration of employees, per employee up to ..$ 20.0017
(d) Annual renewal fee if registering twenty or fewer18
employees ...................................$ 125.0019
(e) Annual renewal fee if registering twenty-one or more20
employees ...................................$ 500.0021
(33) Motor vehicle rental insurers.22
(a) Initial license application:23
(i) Twenty-six or more vehicles ..................$ 500.0024
(ii) Twenty-five or fewer vehicles ................$ 100.0025
(b) Renewal26
(i) Twenty-six or more vehicles ..................$ 250.0027
(ii) Twenty-five or fewer vehicles ................$ 50.0028
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§901. Insurable interest required; personal insurance; intentional acts exclusion1
A. Any individual of competent legal capacity may procure or effect an2
insurance contract upon his own life or body for the benefit of any person; But3
however, no person shall procure or cause to be procured any insurance contract4
upon the life or body of another individual unless the benefits under such contract5
are payable to the individual insured or his personal representatives, or to a person6
having, at the time when such contract was made, an insurable interest in the7
individual insured.8
B. If the beneficiary, assignee , or other payee under any contract made in9
violation of this Section receives from the insurer any benefits thereunder under the10
contract accruing upon the death, disablement, or injury of the individual insured, the11
individual insured or his executor or administrator, as the case may be, may maintain12
an action to recover such benefits from the person so receiving them.13
C. "Insurable interest" as used in this Section and in R.S. 22:856 includes14
only interest as follows:15
(1) In the case of individuals related closely by blood or by law, a substantial16
interest engendered by love and affection ; and. 17
* * *18
(3) An individual, A person, or entity heretofore or hereafter party to an19
agreement, contract, or option for the purchase or sale of a business or a firm or20
immovable property owned by a business or firm, or an interest therein or of shares21
of stock of a closed corporation or of an interest in such shares, has an insurable22
interest in the life of each individual party to such agreement, contract, or option,23
each individual shareholder of such closed corporation or each individual24
shareholder of a corporation, individual partner of a partnership, or individual25
member of a limited liability company owning such property, business, firm, or26
shares of stock for the purposes of such agreement, contract, or option, only, in27
addition to any insurable interest which may otherwise exist as to the life of such28
individual party or individual shareholder.29 HLS 11RS-110 ORIGINAL
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D.(1) No beneficiary, assignee, or other payee under any personal insurance1
contract shall receive from the insurer any benefits thereunder under the contract2
accruing upon the death, disablement, or injury of the individual insured when said3
beneficiary, assignee, or other payee is : either:4
(a) Held by a final judgment of a court of competent jurisdiction to be5
criminally responsible for the death, disablement, or injury of the individual insured;6
or.7
* * *8
(2) Where such a disqualification exists, the policy proceeds shall be payable9
to the secondary or contingent beneficiary, unless similarly disqualified, or, if no10
secondary or contingent beneficiary exists, to the estate of the insured. Provided,11
that nothing Nothing contained herein in this Section shall prohibit payment pursuant12
to an assignment of the policy proceeds where such payment defrays the cost and13
expenses of the insured's funeral or expense incurred in connection with medical14
treatment of the insured. Provided, also, that nothing Nothing contained herein in15
this Section shall prohibit payment of insurance proceeds pursuant to a facility of16
payment clause, so long as such payment is not made to a beneficiary, assignee, or17
other payee disqualified by this Section.18
* * *19
§902. Statutory life insurance beneficiaries 20
Notwithstanding any other law or regulation to the contrary, any religious,21
educational, eleemosynary, charitable, or benevolent institution or undertaking may22
be named beneficiary in or owner of any policy of life insurance issued by any life23
insurance company upon the life of any individual. The beneficiaries or owners24
aforenamed named shall have an insurable interest for the full face of the policy and25
shall be entitled to collect same. On all policies of life insurance issued before26
August 21, 1992, by insurers in which any of the aforenamed named beneficiaries27
or owners shall have been designated beneficiaries in the policies, said the28 HLS 11RS-110 ORIGINAL
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beneficiaries shall have an insurable interest to the full extent of the face of the1
policy and be entitled to collect same, without penalty or deduction.2
* * *3
§904. Ante-dating of life insurance policies prohibited 4
No insurer shall knowingly deliver or issue for delivery in this state any5
policy or contract of life insurance which purports to be issued or to take effect as6
of a date more than six months before the application therefor was made, if thereby7
the premium on such policy or contract is reduced below the premium which would8
be payable thereon as determined by the nearest birthday of the insured at the time9
when such application was made. No agent producer or other representative of an10
insurer shall in this state prepare, submit, or accept any application for life insurance11
which bears a date earlier than the date when such application was made by the12
insured or applicant, if thereby the premium on such policy is reduced as above13
stated. in this Section. Nothing contained in this Section shall invalidate any contract14
made in violation of this Section. This Section shall not be construed to prohibit the15
exchange, alteration, or conversion of policies of life insurance as of the original date16
of such policies if the amount of insurance provided under the new policy does not17
exceed the amount of insurance under the original policy or the amount of insurance18
which the premium paid for the original policy would have purchased if the new19
policy had been originally applied for, whichever is greater;, nor to prohibit the20
exercise of any conversion privilege contained in any policy or contract.21
§905. Written notice required before lapsing life policies 22
A. No life insurer shall within one year after default in payment of any23
premium, installment, loan, or interest, declare forfeited or lapsed any policy issued24
or renewed, and not issued upon the payment of monthly or weekly premiums or for25
a term of one year or less, for non-payment nonpayment when due of any premium,26
installment, loan, or interest, or any portion thereof required by the terms of the27
policy to be paid, unless a written or printed notice stating: 28 HLS 11RS-110 ORIGINAL
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(1) The amount of such premium, installment, loan or interest, or portion1
thereof due on such policy; and 2
(2) The place where it shall be paid and the person to whom the same is3
payable, shall have been duly addressed and mailed to the owner of the policy and4
the assignee of the policy if notice of the assignment has been given to the insurer,5
at the last known post office address of such insured or assignee, postage prepaid by6
the insurer or any person appointed by it to collect such payment, at least fifteen and7
not more than forty-five days prior to the date when the same is payable. Such notice8
shall state both of the following:9
(1) The amount of such premium, installment, loan, or interest, or portion10
thereof due on such policy.11
(2) The place where it shall be paid and the person to whom the same is12
payable.13
B. No policy shall in any case be forfeited or declared forfeited or lapsed14
until the expiration of thirty days after the mailing of such notice. Any payment15
demanded by such the notice and made within the time limit shall be taken to be full16
compliance fully compliant with the requirements of the policy in respect to the time17
of such the payment.18
C. The affidavit of any officer, clerk , or agent representative of the insurer19
or of anyone authorized to mail such notice that the notice required by this section20
Section has been duly addressed and mailed by the insurer issuing such policy, shall21
be presumptive evidence that such notice has been duly given. No action shall be22
maintained to recover under a forfeited policy, unless the same is instituted within23
two years from the day upon which default was made in paying the premium,24
installment, interest or portion thereof for which it is claimed that forfeiture ensued.25
D. This Section shall not apply to group life insurance policies.26
§906. Mortality endowments prohibited 27
A. No life insurer, (including industrial, service, non-profit nonprofit funeral28
associations, and fraternal benefit societies), shall be permitted to issue policies,29 HLS 11RS-110 ORIGINAL
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certificates, or contracts to policyholders or members stipulating for the1
establishment of its policyholders or members into divisions and classes for the2
purpose of providing for the payment of benefits from special funds created for such3
purpose to the oldest member of the division and class or to the member of the4
division and class whose policy has been in force the longest period of time upon the5
death of the member in such division and class, except as provided in Subsection B6
of this Section.7
B. Any life insurer specified in Subsection A of this Section heretofore8
operating on the plan specified in Subsection A of this Section in this state since9
before October 1, 1948, may continue so to do operate upon condition that such life10
insurer shall not after that date establish its policyholders or members into divisions11
or classes other than the divisions or classes actually containing subsisting policies12
or certificates as of July 28th, 28, 1936.13
§907. Benefits required by domiciliary state ; -- Louisiana residents entitled to14
Every policy of life insurance and every benefit contract issued by any alien15
or foreign insurer to an insured or beneficiary who is a citizen or resident of this state16
at the time the policy was issued, shall as to all rights, privileges, or duties of the17
insurer, the insured, or the beneficiary therein, be so interpreted, performed, and18
enforced as to give accord and extend to such insured or beneficiary named therein19
and all parties legally represented or claiming through such original parties, the20
benefit of all legislative or legal enactments of any sort within the state, territory, or21
country where the insurer issuing such policy or contract is domiciled.22
* * *23
§910. Life insurance and annuities; replacement24
Rules and regulations concerning replacement of life insurance and annuities25
as provided in R.S. 22:47(1) and (17) shall be promulgated by the commissioner. by26
July 1, 2000.27
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§912. Exemption of proceeds; life, endowment, annuity1
A.(1) The lawful beneficiary, assignee, or payee, including the insured's2
estate, of a life insurance policy or endowment policy, heretofore or hereafter3
effected shall be entitled to the proceeds and avails of the policy against the creditors4
and representatives of the insured and of the person effecting the policy or the estate5
of either, and against the heirs and legatees of either such person, and such proceeds6
and avails shall also be exempt from all liability for any debt of such the beneficiary,7
payee, or assignee or estate, existing at the time the proceeds or avails are made8
available for his own use. For purposes of this Subsection, the proceeds and avails9
of the policy include the cash surrender value of the policy.10
(2) The exemption authorized in Subsection (A) Paragraph (1) of this11
Subsection from seizure under any writ, mandate, or process issued by any court of12
competent jurisdiction, including any bankruptcy proceedings, shall not apply to that13
portion of the cash surrender value, or loan value of any life insurance policy,14
endowment policy, or annuity contract payable upon surrender during the lifetime15
of the insured or annuitant which exceeds the sum of thirty-five thousand dollars if16
such policy or contract was issued within nine months of issuance of such writ,17
mandate, or process or the filing of a voluntary or involuntary bankruptcy proceeding18
under the United States Code. However, an insurer shall be liable only for such19
amounts that exceed the thirty-five thousand dollar exemption which are in the20
insurer's possession at the time the insurer receives, at its home office, written notice21
by or on behalf of a creditor of claims being made against such value or interest with22
specification of the amount claimed. The insurer shall have no obligation to23
determine the validity or the accuracy of the amount of the claim and shall be24
relieved of further liability of any kind with respect to the monies paid upon such25
request of a creditor. An insurer shall be entitled to be paid by preference and26
priority over the claim of any such seizing creditor the balance of any bona fide loan27
to such the insured or owner which is secured by such interest or value in such the28
policy or contract.29 HLS 11RS-110 ORIGINAL
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B.(1) The lawful beneficiary, assignee, or payee, including the annuitant's1
estate, of an annuity contract, heretofore or hereafter effected, shall be entitled to the2
proceeds and avails of the contract against the creditors and representatives of the3
annuitant or the person effecting the contract, or the estate of either, and against the4
heirs and legatees of either such person, saving the rights of forced heirs, and such5
the proceeds and avails shall also be exempt from all liability for any debt of such6
the beneficiary, payee, or assignee or estate, existing at the time the proceeds or7
avails are made available for his own use.8
* * *9
C. The lawful beneficiary designated in an Education Assistance Account10
depositor's agreement to receive account funds in the event of the account owner's11
death, including the account owner's estate, of the funds contained in an Education12
Assistance Account established pursuant to R.S. 17:3095, heretofore or hereafter13
effected, shall be entitled to the proceeds and avails of the Education Assistance14
Account against the creditors and representatives of the account owner or the person15
effecting the account, or the estate of either, and against the heirs and legatees of16
either such person, saving the rights of forced heirs, and such the proceeds and avails17
shall also be exempt from all liability for any debt of such the beneficiary or estate18
existing at the time the proceeds and avails are made available for his own use.19
D.(1) The provisions of Subsections A, B, and C of this Section shall apply:20
* * *21
(b) Whether or not the policy, contract, or Education Assistance Account22
depositor's agreement is made payable to the person whose life is insured, to his23
estate, or to the estate of an annuitant or to the estate of an Education Assistance24
Account owner if the beneficiary, assignee or payee shall predecease such the25
person.26
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E. No person shall be compelled to exercise any rights, powers, options, or1
privileges under any such policy, contract, or Education Assistance Account2
depositor's agreement.3
F. There shall be excepted from the provisions of this Section a debt secured4
by a pledge of a policy, any rights under such the policy that may have been5
assigned, and any advance payments made on or against such the policy.6
§913. Policies payable to estate; effect of renunciation 7
In all policies of life or endowment insurance and in all annuity contracts8
where the estate of the insured or annuitant is a beneficiary or payee, the widow, or9
heir, or heirs of the insured or annuitant decedent shall be entitled to the proceeds of10
such the policies or contracts according to the laws of distribution affecting the11
succession of the decedent even though they have renounced his succession with the12
same effect as if said the renunciation had not taken place.13
§914. Requirements of variable life and variable annuities14
Except for R.S. 22:951(A)(1), (6), and (7) in the case of a variable annuity15
contract and R.S. 22:931(A)(1), (7), and (9), R.S. 22:933, 934, 935, and 936 in the16
case of an individual variable life insurance contract, and R.S. 22:942(3) in the case17
of a group variable life insurance contract and except as otherwise provided in18
Subpart C of Part IV of Chapter 2 of this Title, all pertinent provisions of the19
insurance laws of this state shall apply to separate accounts and contracts relating20
thereto. Any individual variable life insurance contract, delivered or issued for21
delivery in this state shall contain grace, reinstatement and nonforfeiture provisions22
appropriate to such a the contract; any such group variable life insurance contract23
shall contain a grace provision appropriate to such a the contract and any such24
variable annuity contract shall contain grace, reinstatement, and nonforfeiture25
provisions appropriate to such a that contract.26 HLS 11RS-110 ORIGINAL
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§915. Donations inter vivos of life insurance policies; laws respecting form1
inapplicable 2
* * *3
B. This section Section is remedial and retrospective. All donations inter4
vivos of life insurance policies made on or before July 31, 1968 , are valid and5
effective, whether or not such donations were made in the form prescribed by the6
Civil Code or by any other laws of this state.7
* * *8
§931. Life insurance policies; standard provisions9
A. No policy of life insurance, except as stated in Subsection C, of this10
Section, shall be delivered or issued for delivery in this state unless it contains in11
substance the following provision or provisions which, in the opinion of the12
commissioner of insurance, are more favorable to the policyholder:13
(1) Grace period. A provision that the insured is entitled to a grace period14
either of thirty days or, at the option of the insurer, of one month within which the15
payment of any premium after the first may be made, during which period of grace16
the policy shall continue in full force, but if a claim arises under the policy during17
such the period of grace before the overdue premiums or the deferred premiums of18
the current policy year, if any, are paid, the amount of such premiums, together with19
interest, not in excess of six per cent percent per annum, on any overdue premium,20
may be deducted from any amount payable under the policy in settlement.21
(2) Incontestability. A provision that the policy shall be incontestable after22
it has been in force during the lifetime of the insured for a period of two years from23
its date of issue, except for non-payment nonpayment of premiums and except for24
the conditions of the policy relating to military or naval service, or services auxiliary25
thereto; and at the option of the insurer, provisions relating to benefits in the event26
of disability, as defined in the policy, and provisions which grant additional27
insurance specifically against death by accident or accidental means, may also be28
excepted.29 HLS 11RS-110 ORIGINAL
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(3) Entire contract. A provision that the policy shall constitute the entire1
contract between the parties, or if a copy of the application is endorsed upon or2
attached to the policy when issued, a provision that the policy and the application3
therefor shall constitute the entire contract between the parties.4
(4) Misstatement of age. A provision that if the age of the person insured or5
the age of any other person whose age is considered in determining the premiums has6
been misstated, any amount payable or benefit accruing under the policy shall be7
such as the premium would have purchased at the correct age, or ages.8
(5) A Participating policy. If the policy is a participating policy, a provision9
that the insurer shall annually ascertain and apportion any divisible surplus accruing10
on the policy.11
(6) Nonforfeiture options. A provision in accordance with R.S. 22:93412
through 936 specifying the options, if any, available under the policy in the event of13
default in a premium payment.; Provided, however, however, the mortality table and14
rate of interest used as a basis for the calculation of such the options shall be15
designated by the policy.16
(7) Policy loan. A provision that when the policy has a loan value, the17
insurer issuing it shall advance at the option of the person entitled thereto, a sum18
equal to or less than the cash surrender value of the policy at the end of the current19
policy year computed in accordance with the provisions of this Subpart, at any time20
while the policy is in force, on proper assignment or pledge of the policy or with the21
policy as security at a specified rate of interest not exceeding eight per centum22
percent per annum on policy contracts in effect prior to September 10, 1982, or in23
accordance with the provisions of R.S. 22:932 on policy contracts in effect on or24
after September 10, 1982. The interest shall be compounded annually payable in25
advance. The policy shall also contain a provision that the insurer may deduct from26
such the loan value, in addition to the indebtedness deducted in determining such27
value, any unpaid balance of the premium for the current policy year. The policy28
shall also contain a provision that, if the loan is made or repaid on a date other than29 HLS 11RS-110 ORIGINAL
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the anniversary of the policy, the insurer may collect interest for the portion of the1
current policy year on a pro rata basis at the rate of interest specified in the policy.2
The policy may further provide that interest on the loan may be compounded3
annually and, if not paid when due, it shall be added to the existing loan and shall4
bear interest at the same rate. The policy may further provide that, if and when the5
total indebtedness on the policy, including interest due or accrued, equals, or exceeds6
the amount of the loan value thereof at such time, and if at least thirty days prior7
notice has been given in the manner provided in R.S. 22:905, then the policy shall8
terminate and become void. The insurer may provide in the policy that the making9
of any such loan, except when made to pay premiums, may be deferred for a period10
not to exceed six months after the application therefor has been received by it. The11
provision shall not apply to term policies of twenty years or less.12
(8) Nonforfeiture benefits. A provision specifying the basis used in13
determining non-forfeiture nonforfeiture benefits. In case the proceeds of the policy14
are payable in installments or as an annuity, a table showing the amounts of the15
installments or annuity payments.16
(9) Reinstatement. A provision that the policy will be reinstated at any time17
within three years from the date of default, unless the cash surrender value has been18
exhausted by payment or unless the period of extended insurance has expired, upon19
the application of the insured and the production of evidence of insurability,20
including good health, satisfactory to the insurer and the payment of all overdue21
premiums and the payment or reinstatement of any other indebtedness to the insurer22
upon said policy with the interest at a rate not exceeding six per centum percent per23
annum compounded annually.24
(10) Free look period. (a) A provision, prominently printed on the life25
insurance policy or attached thereto, notifying the insured that ten days are allowed,26
from the date of his receipt of the policy, to examine its provisions. If the policy is27
not as explained by the company, its representative, or as understood by the insured,28
the policy may be surrendered within said the ten-day period, and any premium29 HLS 11RS-110 ORIGINAL
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advanced by the insured, upon the surrender, shall be immediately returned to him.1
The insurer shall have the option of printing, attaching, or endorsing the notice above2
required in this Subparagraph or a notice of equal prominence which, in the opinion3
of the commissioner of insurance, is not less favorable to the policyho lder. This4
Paragraph Subparagraph shall not apply to trip-travel insurance policies which by5
their terms are not renewable.6
(b) If the policy is delivered by an agent or broker, a producer, a receipt shall7
be signed by the policyholder acknowledging delivery of the policy. The receipt8
shall contain the policy number and the date the delivery was completed. All9
delivery receipts required by this Subparagraph shall be retained by the insurer or its10
agent or the broker producer for two consecutive years. The requirement of this11
Subparagraph shall not apply to any insurer that markets policies under a home12
service marketing distribution method and that issues a majority of its policies on a13
weekly or monthly basis.14
(c) If the policy is delivered by mail, it shall be sent by certified mail, return15
receipt requested, or a certificate of mailing shall be obtained showing the date the16
policy was mailed to the policyowner. For policy issuances verified by a certificate17
of mailing, it is presumed that the policy is received by the policyowner ten days18
from the date of mailing. The receipts and the certificate of mailing described in this19
Section shall be retained by the insurer or agent producer for three two years.20
(11) Lump sum payment. A provision which allows election by the21
beneficiary of an option to receive benefits in the form of a lump sum payment. This22
Paragraph shall not apply to policies of industrial life insurance or service insurance.23
B. Exclusions and restrictions. No policy of life insurance delivered or24
issued for delivery in this state shall contain any provision which excludes or25
restricts liability for death caused in a certain specified manner or occurring while26
the insured has a specified status, except the following provisions, or provisions27
which in the opinion of the commissioner of insurance are substantially the same or28
more favorable to policyholders:29 HLS 11RS-110 ORIGINAL
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(1) Provisions excluding or restricting coverage in the event of death1
occurring:2
(1) (a) As a result of war declared or undeclared under conditions specified3
in the policy.4
(2) (b) While either in: 5
(a) (i) the The military, naval, or air forces of any country at war, declared or6
undeclared, or.7
(b) (ii) any Any ambulance, medical, hospital, or civilian noncombatant unit8
serving with such forces, either while serving with or within six months after9
termination of service in such forces or units.10
(3) (c) As a result of self-destruction while sane or insane within two years11
from the date of issue of the policy.12
(4) (d) As a result of aviation under conditions specified in the policy.13
(5) (e) Within two years from the date of issue of the policy as a result of a14
specified hazardous occupation or occupations, or while the insured is residing in a15
specified foreign country or countries.16
(2) In the event of death as to which there is an exclusion or restriction17
pursuant to Paragraphs (1), (3), (4), or (5) Subparagraph (1)(a), (c), (d), or (e) of this18
Subsection, the insurer shall pay an amount not less than the reserve on the face19
amount of the policy, together with the reserve for any paid-up additions thereto, and20
any dividends standing to the credit of the policy, less any indebtedness to insurer21
on the policy, including interest due or accrued.22
(3) In the event of death as to which there is an exclusion or restriction23
pursuant to Paragraph (2) Subparagraph (1)(b) of this Subsection, the insurer shall24
pay the greater of:25
(a) the (i) The amount specified in the preceding paragraph; or Paragraph (2)26
of this Subsection.27 HLS 11RS-110 ORIGINAL
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(b) the (ii) The amount of the gross premiums charged on the policy less1
dividends paid in cash or used in the payment of premiums thereon and less any2
indebtedness to the insurer on the policy, including interest due or accrued.3
(4) A clause in any policy of life insurance, issued under this Code,4
providing that such policy shall be incontestable after a specified period shall5
preclude only a contest of the validity of the policy, and shall not preclude the6
assertion at any time of defenses based upon provisions which exclude or restrict7
coverage as provided in this Subsection, whether or not such restrictions or8
exclusions are excepted in such clause; nor upon a provision regarding misstatement9
of age as provided in Paragraph (4) of Subsection A of this Section, whether or not10
such provision is excepted in such clause.11
(5) Nothing contained herein in this Subsection shall apply to any provision12
in a life insurance policy for additional benefits in the event of death by accident or13
accidental means.14
C. Any of the foregoing provisions or portions thereof of this Section not15
applicable to single premium or non-participating nonparticipating or term policies,16
shall to that extent not be incorporated therein. The provisions of this Section shall17
not apply to policies of industrial life insurance, service insurance, or to policies of18
group life insurance.19
D. Every life insurance policy delivered or issued for delivery in this state,20
other than policies of industrial life insurance or service insurance, shall allow21
election by the beneficiary of an option to receive benefits in the form of a lump sum22
payment.23
§932. Maximum rate of interest on policy loans 24
* * *25
B. The rate of interest charged on a policy loan made under Paragraph (2)26
of Subsection A of this Section shall not exceed the higher of: the following: 27 HLS 11RS-110 ORIGINAL
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(1) The published monthly average for the calendar month ending two1
months prior to the date on which the rate is determined; or. 2
* * *3
D. The maximum rate for each policy referred to in Paragraph (2) of4
Subsection A of this Section shall be determined at regular intervals at least once5
every twelve months, but not more frequently than once in any three month three-6
month period. At the intervals specified in the policy: 7
* * *8
(2) The rate being charged shall be reduced whenever such reduction, as9
determined under Subsection B of this Section, would decrease that rate by one-half10
of one percent of or more per annum.11
E. The insurer shall, at the time a cash loan is made, notify the policyholder12
of the initial rate of interest on the loan, and shall notify the policyholder of the13
initial rate of interest on the premium loan as soon as it is reasonably practical to do14
so after making the initial loan. Such notice need not be given to the policyholder15
when a further premium loan is added except as otherwise provided below. in this16
Subsection. The insurer shall send reasonable advance notice of any increase in the17
rate to policyholders with loans, and include in the notices required above, in this18
Subsection, the substance of the pertinent provisions of Subsections A and C of this19
Section.20
* * *21
§934. Policies to contain non-forfeiture nonforfeiture benefits22
Every contract or policy of life or endowment insurance policy, (other than23
a term life policy for twenty years or less and policies an industrial life insurance24
policy with coverage of one thousand two hundred fifty dollars or less issued as25
industrial policies under the provisions of pursuant to R.S. 22:146), issued on the life26
of a resident of this state or delivered within this state by any insurer, on or after27
January 1, 1937, unless the company elects to take advantage of the exercises its28
option provided in R.S. 22:936(H), shall contain a stipulation require that after three29 HLS 11RS-110 ORIGINAL
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full annual premiums have been paid, thereon it shall not lapse or become void or be1
forfeited for non-payment of any premium thereafter, or of any note therefor, or of2
any loan on such policy, or of any interest on such note or loan, the policy shall not3
be forfeited without value for the nonpayment of any subsequent premiums or for4
policy loan indebtedness or the interest thereon except as provided in R.S. 22:935.5
§935. Paid-up, extended insurance and cash value6
No such policy of Every life or endowment insurance policy, (other than a7
term life policy for twenty years or less and an policies of industrial life insurance8
policy with coverage of one thousand two hundred fifty dollars or less, pursuant to9
the provisions of R.S. 22:146), issued by any legal reserve life insurer on or after10
January 1, 1907, by a legal reserve life insurance company, after being in force for11
three full years, shall not be forfeited without value for the nonpayment of any12
subsequent premiums or for policy loan indebtedness or the interest thereon, unless13
the company elects to take advantage of the exercises its option provided in R.S.14
22:936(H),. after being in force three full years shall by its terms lapse or become15
forfeited by the nonpayment of any premium, or any note therefor, or of any loan on16
such policy, or of any interest on such note or loan. The reserve on such policy17
computed according to the standard adopted by said insurer, together with the value18
of any dividend additions upon said policy after deducting any indebtedness to the19
company and after deducting one-fifth of the said entire reserve or the sum of two20
and fifty-one hundredths dollars for each one hundred dollars of the face of said21
policy if said sum shall be more than the said one-fifth, shall upon demand, with22
surrender of the policy, be applied as a surrender value as agreed upon in the policy;23
provided that, if no other option expressed in the policy be availed of by the owner24
thereof, the policy shall provide for said value to be applied to the automatic option25
shown in the policy which automatic option shall be one of the following, either to26
purchase upon the same life, at the attained age, paid-up insurance, payable at the27
same time, and under the same conditions, except as to the payment of premiums,28
as the original policy, or to continue the insurance in force at its full amount,29 HLS 11RS-110 ORIGINAL
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including any outstanding dividend additions, less any outstanding indebtedness on1
the policy, so long as such surrender value will purchase nonparticipating temporary2
insurance at net single premium rates by the standard adopted by the insurer, at the3
age of the insured at the time of lapse or forfeiture, provided that in case of any4
endowment policy, if the sum applicable to the purchase of temporary insurance be5
more than sufficient to continue the insurance to the end of the endowment term6
named in the policy, the excess shall be used to purchase, in the same manner, pure7
endowment insurance payable at the end of the endowment term named in the policy8
on the conditions on which the original policy was issued; and provided further that,9
in calculating the The nonforfeiture value per hundred dollars of coverage under10
said policy is determined as the sum of the legal reserve and accumulated dividends,11
less any policy loan indebtedness and a surrender charge equal to the greater of one-12
fifth of the legal reserve or two dollars and fifty cents. Unless the policy owner13
elects one of the other nonforfeiture options within the policy, the nonforfeiture14
value as determined herein shall be applied towards the policy’s automatic15
nonforfeiture option. The automatic nonforfeiture option shall be the purchase of16
paid up life or endowment insurance on the same life at the age at the time of17
forfeiture and under the same terms, except as to the payment of premiums, as the18
original policy, or to continue the insurance in force at its full amount, including the19
amount of accumulated dividends, less any existing policy loan indebtedness;20
however, such surrender value will purchase nonparticipating temporary insurance21
at net single premium rates using the standard as prescribed by the insurer, at the age22
at the time of forfeiture, provided that in the case of an endowment policy, if the sum23
needed to purchase temporary insurance is more than that needed to continue the24
insurance to the end of the policy's endowment term, the excess shall be used to25
purchase pure endowment insurance payable at the end of the policy's endowment26
term using the purchase rates as prescribed by the insurer. When determining the net27
single premium rates for any temporary insurance, the insurer may use one hundred28
thirty percent of the rate of reserve mortality assumption adopted as a basis for29 HLS 11RS-110 ORIGINAL
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reserve for the policy as the mortality rate. This further provision shall not apply to1
any mortality table constructed on the basis of insurance companies company2
experience prior to 1900. Provided, further, that any Any attempted waiver of the3
provisions of this paragraph Paragraph in any application, policy, or otherwise shall4
be void, and that any value allowed in lieu thereof shall be at least equal to the net5
value of the temporary and or pure endowment insurance as provided herein.6
provided for. The term of temporary insurance herein provided herein for shall7
include the period of grace, if any.8
§936. Standard nonforfeiture law for life insurance 9
A.(1) This Section shall be known as the "Standard Nonforfeiture Law for10
Life Insurance". In the case of policies issued on and after the effective date of this11
Section, as defined in Subsection L hereof, of this Section, no policy of life12
insurance, except as stated in Subsection K of this Section shall be delivered or13
issued for delivery in this state unless it shall contain in substance the following14
provisions, or corresponding provisions which in the opinion of the commissioner15
are at least as favorable to the defaulting or surrendering policyholder as are the16
minimum requirements hereinafter specified and are essentially in compliance with17
in Subsection J of this Section: 18
* * *19
(2)(a) Any of the foregoing provisions, or portions thereof, of Paragraph (1)20
of this Subsection not applicable by reason of because of the structure of the plan of21
insurance may, to the extent inapplicable, be omitted from the policy.22
(b) Notwithstanding any other provisions to the contrary, the insurer shall23
reserve the right to defer the payment of any cash surrender value for a period not to24
exceed six months after demand therefor with surrender of the policy.25
Notwithstanding the above this provision, if payment is not made within thirty days26
after demand therefor with surrender of the policy, the insurer shall pay, in addition27
to the cash surrender value, interest on the cash surrender value at the judicial28
interest rate set by Louisiana Civil Code Article 2924 R.S. 9:3500 commencing from29 HLS 11RS-110 ORIGINAL
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the date of surrender until the cash surrender value is paid in full within the six-1
month period.2
B.(1) Any cash surrender value available under the policy in the event of3
default in a premium payment due on any policy anniversary, whether or not4
required by Subsection A, of this Section, shall be an amount not less than the5
excess, if any, of the present value on such anniversary of the future guaranteed6
benefits which would have been provided for by the policy, including any existing7
paid-up additions, if there had been no default, over the sum of the then present value8
of the adjusted premiums as defined in Subsections D, E, F, and G of this Section9
corresponding to premiums which would have fallen due on and after such10
anniversary, and the amount of any indebtedness to the insurer on the policy.11
(2) Provided, however, that However, for any policy issued on or after the12
effective date of Subsection G of this Section as defined therein, which provides13
supplemental life insurance or annuity benefits at the option of the insured and for14
an identifiable additional premium by rider or supplemental policy provision, the15
cash surrender value referred to in the first paragraph Paragraph (1) of this16
Subsection shall be an amount not less than the sum of the cash surrender value as17
defined in such paragraph Paragraph for an otherwise similar policy issued at the18
same age without such rider or supplemental policy provision and the cash surrender19
value as defined in such paragraph Paragraph for a policy which provides only the20
benefits otherwise provided by such rider or supplemental policy provision.21
(3) Provided, further, that However, for any family policy issued on or after22
the effective date of Subsection G of this Section as defined therein, which defines23
a primary insured and provides term insurance on the life of the spouse of the24
primary, insured expiring before the spouse's age of seventy-one , years, the cash25
surrender value referred to in the first paragraph Paragraph (1) of this Subsection26
shall be an amount not less than the sum of the cash surrender value as defined in27
such paragraph Paragraph for an otherwise similar policy issued at the same age28
without such term insurance on the life of the spouse and the cash surrender value29 HLS 11RS-110 ORIGINAL
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as defined in such paragraph Paragraph for a policy which provides only the benefits1
otherwise provided by such term insurance on the life of the spouse.2
(4) Any cash surrender value available within thirty days after any policy3
anniversary under any policy paid-up by completion of all premium payments or any4
policy continued under any paid-up nonforfeiture benefit, whether or not required by5
Subsection A, of this Section, shall be an amount not less than the present value, on6
such anniversary, of the future guaranteed benefits provided for by the policy,7
including any existing paid-up additions, decreased by any indebtedness to the8
insurer on the policy.9
* * *10
D.(1)(a) This Subsection shall not apply to policies issued on or after the11
effective date of Subsection G as defined therein. Except as provided in the third12
paragraph Paragraph (3) of this Subsection, the adjusted premiums for any policy13
shall be calculated on an annual basis and shall be such uniform percentage of the14
respective premiums specified in the policy for each policy year, excluding extra15
premiums on substandard policies, that the present value, at the date of issue of the16
policy, of all such adjusted premiums shall be equal to the sum of: all of the17
following:18
(a) the (i) The then present value of the future guaranteed benefits provided19
for by the policy;. 20
(b) two (ii) Two percent of the amount of insurance, if the insurance be21
uniform in amount, or of the equivalent uniform amount, as hereinafter defined, if22
the amount of insurance varies with duration of the policy;. 23
(c) forty (iii) Forty percent of the adjusted premium for the first policy year;24
and. 25
(d) twenty-five (iv) Twenty-five percent of either the adjusted premium for26
the first policy year or the adjusted premium for a whole life policy of the same27
uniform or equivalent uniform amount with uniform premiums for the whole of life28
issued at the same age for the same amount of insurance, whichever is less. 29 HLS 11RS-110 ORIGINAL
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(b) In applying the percentages specified in (c) Items (a)(iii) and (d) above,1
(iv) of this Paragraph, no adjusted premium shall be deemed to exceed four percent2
of the amount of insurance or uniform amount equivalent thereto. The date of issue3
of a policy for the purpose of this Subsection shall be the date from which the first4
policy anniversary is computed.5
(2) In the case of a policy providing an amount of insurance varying with6
duration of the policy, the equivalent uniform amount thereof for the purpose of this7
Subsection shall be deemed to be the uniform amount of insurance provided by an8
otherwise similar policy, containing the same endowment benefit or benefits, if any,9
issued at the same age and for the same term, the amount of which does not vary10
with duration and the benefits under which have the same present value at the date11
of issue as the benefits under the policy.; Provided, however, that however, in the12
case of a policy providing a varying amount of insurance issued on the life of a child13
under age ten, the equivalent uniform amount may be computed as though the14
amount of insurance provided by the policy prior to the attainment of age ten were15
the amount provided by such policy at age ten.16
* * *17
(4) Except as otherwise provided in Subsections E, and F, and G of this18
Section, all adjusted premiums and present values referred to in this Section shall for19
all policies of ordinary insurance be calculated on the basis of the Commissioners20
1941 Standard Ordinary Mortality Table; provided that for any category of ordinary21
insurance issued on female risks, adjusted premiums and present values may be22
calculated according to an age not more than three years younger than the actual age23
of the insured and such calculations for all policies of industrial insurance, as defined24
in R.S. 22:141, shall be made on the basis of the 1941 Standard Industrial Mortality25
Table. All calculations shall be made on the basis of the rate of interest, not26
exceeding three and one-half percent per annum, specified in the policy for27
calculating cash surrender values and paid-up nonforfeiture benefits.; Provided,28
however, that however, in calculating the present value of any paid-up term29 HLS 11RS-110 ORIGINAL
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insurance with accompanying pure endowment, if any, offered as a nonforfeiture1
benefit, the rates of mortality assumed may be not more than one hundred and thirty2
percent of the rates of mortality according to such applicable table.; Provided,3
further, that however, for insurance issued on a substandard basis, the calculation of4
any such adjusted premiums and present values may be based on such other table of5
mortality as may be specified by the insurer and approved by the commissioner.6
E.(1) This Subsection shall not apply to ordinary policies issued on or after7
the effective date of Subsection G of this Section as defined therein. In the case of8
ordinary policies issued on or after the effective date of this Subsection as defined9
herein and in Subsection L, of this Section, all adjusted premiums and present values10
referred to in this Section shall be calculated on the basis of the Commissioner's11
1958 Standard Ordinary Mortality Table and the rate of interest specified in the12
policy for calculating cash surrender values and paid-up nonforfeiture benefits13
provided that such rate of interest shall not exceed four percent per annum for14
policies issued prior to September 7, 1979, and such rate of interest shall not exceed15
five and one-half percent per annum for policies issued on or after September 7,16
1979,. and provided that However, for any category of ordinary insurance issued on17
female risks, adjusted premiums, and present values may be calculated according to18
an age not more than six years younger than the actual age of the insured.; Provided,19
however, that however, in calculating the present value of any paid-up term20
insurance with accompanying pure endowment, if any, offered as a nonforfeiture21
benefit, the rates of mortality assumed may be not more than those shown in the22
Commissioner's 1958 Extended Term Insurance Table. Provided, further, that23
However, for insurance issued on a substandard basis, the calculation of any such24
adjusted premiums, and present values may be based on such other table of mortality25
as may be specified by the insurer and approved by the commissioner.26
(2) Any After July 27, 1960, any insurer may file with the commissioner a27
written notice of its election to comply with the provisions of this Subsection after28
a specified date with respect to the policies specified in the notice. After the filing29 HLS 11RS-110 ORIGINAL
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of such notice, then upon such specified date which shall be the effective date of this1
Subsection for such insurer with respect to such policies, this Subsection shall2
become effective with respect to such policies specified in such notice and thereafter3
issued by such insurer.4
F.(1) This Subsection shall not apply to industrial policies issued on or after5
the effective date of Subsection G of this Section as defined therein. In the case of6
industrial policies issued on or after the effective date of this Subsection F as defined7
herein and in Subsection L of this Section, all adjusted premiums and present values8
referred to in this Section shall be calculated on the basis of the Commissioner's9
1961 Standard Industrial Mortality Table and the rate of interest specified in the10
policy for calculating cash surrender values and paid-up nonforfeiture benefits, but11
such rate of interest shall not exceed four percent per annum for policies issued prior12
to September 7, 1979, and such a rate of interest shall not exceed five and one-half13
percent per annum for policies issued on or after September 7, 1979. In addition, in14
calculating the present value of any paid-up term insurance with accompanying pure15
endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed16
may be not more than those shown in the Commissioner's 1961 Industrial Extended17
Term Insurance Table.; Further, however, for insurance issued on a substandard18
basis, the calculations of any such adjusted premiums and present values may be19
based on such other table of mortality as may be specified by the insurer and20
approved by the commissioner.21
* * *22
G.(1)(a) This Subsection shall apply to all policies issued on or after the23
effective date of this Subsection as defined herein. Except as provided in Paragraph24
(7) of this Subsection, the adjusted premiums for any policy shall be calculated on25
an annual basis and shall be such uniform percentage of the respective premiums26
specified in the policy for each policy year, excluding amounts payable as extra27
premiums to cover impairments or special hazards and also excluding any uniform28
annual contract charge or policy fee specified in the policy in a statement of the29 HLS 11RS-110 ORIGINAL
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method to be used in calculating the cash surrender values and paid-up nonforfeiture1
benefits, that the present value, at the date of issue of the policy, of all adjusted2
premiums shall be equal to the sum of the following three factors:3
(a) the (i) The then present value of the future guaranteed benefits provided4
for by the policy;. 5
(b) one (ii) One percent of either the amount of insurance, if the insurance6
be uniform in amount, or the average amount of insurance at the beginning of each7
of the first ten policy years ;. 8
(c) one (iii) One hundred twenty-five percent of the nonforfeiture net level9
premium as hereinafter defined.10
Provided, however, that (b) However, in applying the percentage specified11
in (c) above Item (a)(iii) of this Paragraph, no nonforfeiture net level premium shall12
be deemed to exceed four percent of either the amount of insurance, if the insurance13
be uniform in amount, or the average amount of insurance at the beginning of each14
of the first ten policy years. The date of issue of a policy for the purpose of this15
Subsection shall be the date as of which the rated age of the insured is determined.16
* * *17
(4) Except as otherwise provided in Paragraph 7 (7) of this Subsection, the18
recalculated future adjusted premiums for any such policy shall be such uniform19
percentage of the respective future premiums specified in the policy for each policy20
year, excluding amounts payable as extra premiums to cover impairments and special21
hazards, and also excluding any uniform annual contract charge or policy fee22
specified in the policy in a statement of the method to be used in calculating the cash23
surrender values and paid-up nonforfeiture benefits, that the present value, at the24
time of change to the newly defined benefits or premiums of all such future adjusted25
premiums shall be equal to the excess of (A) the sum of (a) the then present value of26
the then future guaranteed benefits provided for by the policy and (b) the additional27 HLS 11RS-110 ORIGINAL
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expense allowance, if any, over (B) the then cash surrender value, if any, or present1
value of any paid-up nonforfeiture benefit under the policy.2
* * *3
(8) All adjusted premiums and present values referred to in this Section shall4
be calculated for all policies of ordinary insurance on the basis of the5
Commissioner's 1980 Standard Ordinary Mortality Table or at the election of the6
insurer for any one or more specified plans of life insurance, the Commissioner's7
1980 Standard Ordinary Mortality Table with Ten-Year Select Mortality Factors;8
shall be calculated for all policies of industrial insurance on the basis of the9
Commissioner's 1961 Standard Industrial Mortality Table; and shall be calculated10
for all policies issued in a particular calendar year on the basis of a rate of interest11
not exceeding the nonforfeiture interest rate as defined in this Subsection for policies12
issued in that calendar year .; Provided, however, that: however,13
* * *14
(b) Under any paid-up nonforfeiture benefit including any paid-up dividend15
additions, any cash surrender value available, whether or not required by Subsection16
A, of this Section shall be calculated on the basis of the mortality table and rate of17
interest used in determining the amount of such paid-up nonforfeiture benefit and18
paid-up dividend additions, if any.19
* * *20
(d) In calculating the present value of any paid-up term life insurance with21
accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates22
of mortality assumed may be not more than those shown in the Commissioner's 198023
Extended Term Insurance Table for policies of ordinary insurance and not more than24
the Commissioner's 1961 Industrial Extended Term Insurance Table for policies of25
industrial life insurance.26
(e) For life insurance issued on a substandard basis, the calculation of any27
such adjusted premiums and present values may be based on appropriate28
modifications of the aforementioned tables.29 HLS 11RS-110 ORIGINAL
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(f) Any ordinary life mortality tables, adopted after 1980, by the National1
Association of Insurance Commissioners that are approved by the commissioner for2
use in determining the minimum nonforfeiture standard may be substituted for the3
Commissioner's 1980 Standard Ordinary Mortality Table with or without Ten-Year4
Select Mortality Factors or for the Commissioner's 1980 Extended Term Insurance5
Table.6
(g) Any industrial life mortality tables adopted after 1980, by the National7
Association of Insurance Commissioners that are approved by the commissioner for8
use in determining the minimum nonforfeiture standard may be substituted for the9
Commissioner's 1961 Standard Industrial Mortality Table or the Commissioner's10
1961 Industrial Extended Term Insurance Table.11
* * *12
I.(1) Any cash surrender value and any paid-up nonforfeiture benefit13
available under the policy in the event of default in a premium payment due at any14
time other than on the policy anniversary shall be calculated with allowance for the15
lapse of time and the payment of fractional premiums beyond the last preceding16
policy anniversary. All values referred to in Subsections B, C, D, E, F, and through17
G of this Section may be calculated upon the assumption that any death benefit is18
payable at the end of the policy year of death. The net value of any paid-up19
additions, other than paid-up term additions, shall not be less than the amounts used20
to provide such additions. Notwithstanding the provisions of Subsection B of this21
Section, additional benefits payable in any of the following shall be disregarded in22
ascertaining cash surrender values and nonforfeiture benefits required by this23
Section: 24
(a) In the event of death or dismemberment by accident or accidental means ;.25
(b) In the event of total and permanent disability;. 26
(c) As reversionary annuity or deferred reversionary annuity benefits ;.27 HLS 11RS-110 ORIGINAL
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(d) As term insurance benefits, whether or not provided by a rider or1
supplemental policy provision to which, if issued as a separate policy, this Section2
shall not apply;. 3
(e) As term insurance on the life of a child or on the lives of children4
provided in a policy on the life of a parent of the child, if such term insurance expires5
before the child's age is twenty-six, is uniform in amount after the child's age is one,6
and has not become paid-up by reason of the death of a parent of the child ; and. 7
(f) As other policy benefits additional to life insurance and endowment8
benefits and premiums for all such additional benefits.9
* * *10
J.(1) This Subsection in addition to all other All applicable Subsections of11
this Section shall apply to all policies issued on or after January 1, 1986. Any cash12
surrender value available under the policy in the event of default in a premium13
payment due on any policy anniversary shall be in an amount which does not differ14
by more than two-tenths of one percent of either the amount of insurance, if the15
insurance be uniform in amount, or the average amount of insurance at the beginning16
of each of the first ten policy years, from the sum of: (a) the greater of zero and the17
basic cash value hereinafter specified and (b) the present value of any existing paid-18
up additions less the amount of any indebtedness to the insurer under the policy.19
(2) The basic cash value shall be equal to the present value, on such20
anniversary, of the future guaranteed benefits which would have been provided for21
by the policy, excluding any existing paid-up additions and before deduction of any22
indebtedness to the insurer, if there had been no default, less the then present value23
of the nonforfeiture factors, as hereinafter defined, corresponding to premiums which24
would have fallen due on and after such anniversary.; Provided, however, that25
however, the effects on the basic cash value of supplemental life insurance or annuity26
benefits or of family coverage, as described in Subsection B or Subsection D, of this27
Section, whichever is applicable, shall be the same as are the effects specified in such28 HLS 11RS-110 ORIGINAL
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Subsection B or Subsection D of this Section, whichever is applicable on the cash1
surrender values defined in that Subsection.2
(3)(a) The nonforfeiture factor for each policy year shall be an amount equal3
to a percentage of the adjusted premium for the policy year, as defined in Subsection4
D or Subsection G, of this Section, whichever is applicable. Except as is required5
by the next succeeding sentence Subparagraph (b) of this Paragraph, such percentage6
shall be the same percentage for each policy year between the second policy7
anniversary and the later of the fifth policy anniversary and that of the first policy8
anniversary at which there is available under the policy a cash surrender value in an9
amount, before including any paid-up additions and before deducting any10
indebtedness, of at least two tenths of one percent of either the amount of insurance,11
if the insurance be uniform in amount, or the average amount of insurance at the12
beginning of each of the first ten policy years.13
(b) No percentage after the later of the two policy anniversaries specified in14
the preceding sentence Subparagraph (a) of this Paragraph shall apply to fewer than15
five consecutive policy years.; Provided, that however, no basic cash value may be16
less than the value which would be obtained if the adjusted premiums for the policy,17
as defined in Subsections Subsection D or G, of this Section, whichever is18
applicable, were substituted for the nonforfeiture factors in the calculation of the19
basic cash value.20
* * *21
(5) Any cash surrender value available other than in the event of default in22
a premium payment due on a policy anniversary, and the amount of any paid-up23
nonforfeiture benefit available under the policy in the event of default in a premium24
payment shall be determined in manners consistent with the manners specified for25
determining the analogous minimum amounts in Subsections A, B, C, G, and I of26
this Section. The amounts of any cash surrender values and of any paid-up27
nonforfeiture benefits granted in connection with additional benefits such as those28 HLS 11RS-110 ORIGINAL
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listed as items Subparagraphs (a) through (f) in of Subsection I of this Section shall1
conform with the principles of this Subsection.2
* * *3
K.(1) This Section shall not apply to any of the following: 4
* * *5
(g) Policy, which provides no guaranteed nonforfeiture or endowment6
benefits, for which no cash surrender value, if any, or present value of any paid-up7
nonforfeiture benefit, at the beginning of any policy year, calculated as specified in8
Subsections B, C, D, E, F, and through G of this Section, exceeds two and one-half9
percent of the amount of insurance at the beginning of the same policy year.10
(h) Policy which shall be delivered outside this state through an agent a11
producer or other representative of the insurer issuing the policy.12
* * *13
§941. Group life insurance defined; eligibility; payment of premiums; limits and14
coverage15
* * *16
B. Each policy of group life insurance may cover one or more employees or17
members at date of issue.as follows:18
* * *19
(6) Any policy issued under this section Section may provide for the20
readjustment of the rate of premium based on the experience thereunder at the end21
of the first year or of any subsequent year of insurance thereunder and such22
readjustment may be made retroactive only for such policy year. Any refund on any23
plan for readjustment of the rate of premium based on the experience of the group24
policies hereafter issued, and any dividend paid under such policies may be used to25
reduce the employer's share of the cost of coverage, except that if the aggregate26
refunds or dividends under such group policy and in any other group policy or27
contract issued to the policyholder exceed the aggregate contributions of the28 HLS 11RS-110 ORIGINAL
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employer toward the cost of the coverages, such excess shall be applied by the1
policyholder for the sole benefit of insured employees.2
* * *3
§942. Standard provisions for group life policies4
Each policy of group life insurance as defined in R.S. 22:941 shall contain5
in substance the following provisions or, at the option of the insurer, provisions6
which in the opinion of the commissioner of insurance are not less favorable to the7
policyholder .; However, Paragraphs (6) through (12) of this Section shall not apply8
to policies described in Paragraph (3) of Subsection A of R.S. 22:941 R.S.9
22:941(A)(3), except that, where policies are issued pursuant to said that Paragraph,10
the insurer shall issue to the policyholder for delivery to the person whose life is11
insured an individual certificate setting forth the insurance protection afforded, to12
whom it is payable, information relating to notice and proof of loss, and that the13
standard provisions required for individual life insurance policies shall not apply to14
group life insurance policies.:15
(1) The contract: A provision that a copy of the application, if any, of the16
policyholder shall be attached to the policy when issued, that all statements made by17
the policyholder or by the persons insured shall be deemed representations and not18
warranties, and that no statement made by any person insured shall be used in any19
contest unless a copy of the instrument containing the statement is or has been20
furnished provided to such person or to his beneficiary.21
* * *22
(10) Conversion on termination of eligibility: A provision that if the23
insurance, or any portion of it, on an individual covered under the policy ceases24
because of termination of employment or of membership in the class or classes25
eligible for coverage under the policy, such individual shall be entitled to have issued26
to him by the insurer, without evidence of insurability, an individual policy of life27
insurance without disability or other supplementary benefits, provided application28 HLS 11RS-110 ORIGINAL
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for the individual policy shall be made and the first premium paid to the insurer1
within thirty-one days after such termination. It is further provided that:2
* * *3
(b) The individual policy shall be in an amount not in any event in excess of4
the amount of life insurance which ceases because of such termination nor less than5
one thousand dollars unless a smaller amount of coverage was provided for such6
individual under the group policy, provided that any amount of insurance which7
matures on the date of such termination or has matured prior thereto under the group8
policy as an endowment payable to the individual insured, whether in one sum or9
installments or in the form of an annuity, shall not, for the purposes of this provision,10
be included in the amount which is considered to cease because of such termination.11
* * *12
(11) Conversion on termination of policy: A provision that if the group13
policy terminates or is amended so as to terminate the insurance of any class of14
insured individuals, every individual insured thereunder at the date of such15
termination whose insurance terminates and who has been so insured for at least five16
years prior to such termination date shall be entitled to have issued to him by the17
insurer an individual policy of life insurance, subject to the same conditions and18
limitations as are provided by Paragraph (10) of this Section, except that the group19
policy may provide that the amount of such individual policy shall not exceed the20
smaller of (a) the amount of the individual's life insurance protection ceasing because21
of the termination or amendment of the group policy, less the amount of life22
insurance for which he is or becomes eligible under any group policy issued or23
reinstated by the same or another insurer within thirty-one days of such termination24
and (b) two thousand dollars.25
* * *26 HLS 11RS-110 ORIGINAL
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§943. Group life insurance; exclusions; restrictions; contestability1
* * *2
D. In the event of death as to which there is an exclusion or restriction not3
prohibited by Paragraph (A)(2) of this Section or is allowed by the commissioner,4
the insurer shall pay the greater of:5
* * *6
(2) The amount of the gross premiums charged on the policy less dividends7
paid in cash or used in the payment of premiums thereon and less any indebtedness8
to the insurer on the policy, including interest due or accrued.9
* * *10
§944. Exemption of proceeds; group life 11
A. A policy of group life insurance or the proceeds thereof payable to the12
individual insured or to the beneficiary, thereunder, shall not be liable, either before13
or after payment, to be applied to any legal or equitable process to pay any liability14
of any person having a right under the policy. The proceeds, thereof, when not made15
payable to a named beneficiary or to a third person pursuant to a facility-of-payment16
clause, shall not constitute a part of the estate of the individual insured for the17
payment of his debts.18
* * *19
§951. Annuities and pure endowment contracts; standard provisions20
A. No annuity or pure endowment contract except a reversionary annuity21
otherwise called a survivorship annuity and except a group annuity contract shall be22
delivered or issued for delivery in this state unless it contains in substance the23
following provision or provisions which in the opinion of the commissioner of24
insurance are more favorable to the holders of such contracts:25
(1) Grace period: A provision that there shall be a period of grace, either of26
thirty days or of one month, within which any stipulated payment to the insurer27
falling due after the first may be made, during which period of grace the contract28
shall continue in full force; but if a claim arises under the contract on account of29 HLS 11RS-110 ORIGINAL
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death during the said period of grace before the overdue payment to the insurer or1
the deferred payments of the current contract year, if any, are made, the amount of2
such payments, with interest, not in excess of six per cent percent per annum, on any3
overdue payments, may be deducted from any amount payable under the contract in4
settlement.5
(2) Incontestability: If any statements, other than those relating to age, sex,6
and identity, are required as a condition of issuing the contract, a provision that the7
contract shall be incontestable after it has been in force during the lifetime of the8
person or each of the persons as to whom such statements are required, for a period9
of two years from its date of issue, except where stipulated payments to the insurer10
have not been made, and except for violation of the conditions, if any, of the contract11
relating to military or naval service; and at the option of the insurer issuing the same,12
such contract may also except provisions relative to benefits in the event of total and13
permanent disability and provisions which grant insurance specifically against death14
by accident or accidental means.15
(3) Entire contract: A provision that the contract shall constitute the entire16
contract between the parties, or if a copy of the application is endorsed upon or17
attached to the contract when issued, a provision that the contract and the application18
therefor shall constitute the entire contract between the parties.19
(4) Misstatement of age or sex: A provision that if the age or sex of the20
person or persons upon whose life or lives the contract is made, or of any of them,21
has been misstated, the amount payable or benefit accruing under the contract, shall22
be such as the stipulated payments to the insurer would have purchased according23
to the correct age or sex; and that if the insurer shall make any overpayments on24
account of any such misstatement, the amount thereof, with interest at a rate to be25
specified in the contract but not exceeding six per centum percent per annum, shall26
be charged against the current or next succeeding payment or payments to be made27
by the insurer under the contract.28 HLS 11RS-110 ORIGINAL
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(5) A Participating policy: If the policy is a participating policy, a provision1
that the insurer shall annually ascertain and apportion any divisible surplus accruing2
on the contract.3
(6) Nonforfeiture options: A provision specifying the options available in4
the event of default in a stipulated payment after three full years stipulated payments5
have been made, together with a table showing, in figures, the options so available6
during each of the first twenty years after the issuance of the contract or for the term7
of the stipulated payments, if that be less than twenty years.8
(7) Reinstatement: A provision that at any time within one year from the9
date of default in making stipulated payments to the insurer, during the life of the10
annuitant and unless the cash surrender value, if any, has been paid, the contract will11
be reinstated, on the application of the person entitled thereto pursuant to the12
provisions of the contract, upon payment to the insurer of all overdue stipulated13
payments and of all indebtedness to the insurer on the contract with interest on both14
at a rate to be specified in the contract but not to exceed six per cent percent per15
annum, compounded annually; and in cases where applicable the contract may also16
contain a provision requiring, as a condition of reinstatement, evidence of17
insurability, including good health, satisfactory to the insurer.18
(8)(a) Free look period: A provision, prominently printed on the contract or19
attached thereto, notifying the insured that ten days are allowed, from the date of20
actual receipt of the contract, to examine its provisions. If the contract is not as21
explained by the company, its representative, or as understood by the insured, the22
contract may be surrendered within said ten-day period, and any premium advanced23
by the insured, upon the surrender, shall be immediately returned to him. The24
insurer shall have the option of printing, attaching, or endorsing the notice above25
required or a notice of equal prominence which, in the opinion of the commissioner26
of insurance, is not less favorable to the contract holder.27
(b) If the policy is delivered by an agent or broker, a producer, a receipt shall28
be signed by the policyholder acknowledging delivery of the policy. The receipt shall29 HLS 11RS-110 ORIGINAL
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contain the policy number and the date the delivery was completed. The delivery1
receipts required by this Subparagraph shall be retained by the insurer, its agent, or2
the broker or its producer for two consecutive years. The requirement of this3
Subparagraph shall not apply to any insurer that markets policies under a home4
service marketing distribution method and that issues a majority of its policies on a5
weekly or monthly basis.6
(c) If the policy is delivered by mail, it shall be sent by certified mail, return7
receipt requested, or a certificate of mailing shall be obtained showing the date the8
policy was mailed to the policyowner. For policy issuances verified by a certificate9
of mailing, it is presumed that the policy is received by the policyowner ten days10
from the date of mailing. The receipts and the certificate of mailing described in this11
Section shall be retained by the insurer or agent producer for three two years.12
* * *13
§952. Standard nonforfeiture law for individual deferred annuities14
A.15
* * *16
(2) This Section shall not apply to any charitable gift annuity entered into on17
behalf of an organization qualified with the United States Internal Revenue Service18
for an exemption from federal income tax under Section 501(c)(3) of the Internal19
Revenue Code, reinsurance, group annuity purchases under a retirement plan or plan20
of deferred compensation established or maintained by an employer , (including a21
partnership or sole proprietorship), or by an employee organization, or by both, other22
than a plan providing individual retirement accounts or individual retirement23
annuities under Section 408 of the Internal Revenue Code, as now or hereafter24
amended, premium deposit fund, variable annuity, investment annuity, immediate25
annuity, any deferred annuity contract after annuity payments have commenced, or26
reversionary annuity, nor to any contract which shall be delivered outside this state27 HLS 11RS-110 ORIGINAL
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through an agent a producer or other representative of the company issuing the1
contract.2
* * *3
B. In the case of contracts issued on or after the operative date of this Section4
as defined in Subsection K, of this Section, no contract of annuity, except as stated5
in Subsection A, of this Section, shall be delivered or issued for delivery in this state6
unless it contains in substance the following provisions, or corresponding provisions7
which in the opinion of the commissioner are at least as favorable to the contract-8
holder, upon cessation of payment of considerations under the contract .:9
* * *10
(4)(a) A statement that any paid-up annuity, cash surrender or death benefits11
that may be available under the contract are not less than the minimum benefits12
required by any statute of the state in which the contract is delivered and an13
explanation of the manner in which such benefits are altered by the existence of any14
additional amounts credited by the company to the contract, any indebtedness to the15
company on the contract, or any prior withdrawals from or partial surrenders of the16
contract.17
(b) Notwithstanding the requirements of this Subsection, any deferred18
annuity contract may provide that if no considerations have been received under a19
contract for a period of two full years and the portion of the paid-up annuity benefit20
at maturity on the plan stipulated in the contract arising from considerations paid21
prior to such period would be less than twenty dollars monthly, the company may at22
its option terminate such contract by payment in cash of the then present value of23
such portion of the paid-up annuity benefit, calculated on the basis of the mortality24
table, if any, and interest rate specified in the contract for determining the paid-up25
annuity benefit, and by such payment shall be relieved of any further obligation26
under such contract.27
* * *28 HLS 11RS-110 ORIGINAL
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J. For any contract which provides, within the same contract by rider or1
supplemental contract provision, both annuity benefits and life insurance benefits2
that are in excess of the greater of cash surrender benefits or a return of the gross3
considerations with interest, the minimum nonforfeiture benefits shall be equal to the4
sum of the minimum nonforfeiture benefits for the annuity portion and the minimum5
nonforfeiture benefits, if any, for the life insurance portion computed as if each6
portion were a separate contract. Notwithstanding the provisions of Subsections D,7
E, F, G, and H, additional benefits payable : (i) in the event of total and permanent8
disability,; (ii) as reversionary annuity or deferred reversionary annuity benefits,; or9
(iii) as other policy benefits additional to life insurance, endowment and annuity10
benefits, and considerations for all such additional benefits, shall be disregarded in11
ascertaining the minimum nonforfeiture amounts, paid-up annuity, cash surrender,12
and death benefits that may be required by this Section. The inclusion of such13
additional benefits shall not be required in any paid-up benefits, unless such14
additional benefits separately would require minimum nonforfeiture amounts, paid-15
up annuity, cash surrender, and death benefits.16
* * *17
§961. Group annuity contracts; definition; standard provisions 18
A. Any policy or contract, except a joint, reversionary or survivorship19
annuity contract, whereby annuities are payable dependent upon the continuation of20
the lives of more than one person, shall be deemed a group annuity contract. The21
person, firm, or corporation to whom such contract is issued shall be deemed the22
"holder" of such contract. The term "annuitant," as used herein, refers to any person23
upon whose continued life such annuity is dependent.24
B. No group annuity contract shall be delivered or issued for delivery in this25
state and no certificate shall be used in connection therewith unless it contains in26
substance the following provisions to the extent that such provisions are applicable27
to such contract or to such certificate, as the case may be, or provisions which in the28 HLS 11RS-110 ORIGINAL
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opinion of the commissioner of insurance are more favorable to annuitants, or not1
less favorable to annuitants and more favorable to the holders: 2
(1) Grace period: A provision in such contract that there shall be a period3
of grace, either of thirty days or of one month, within which any stipulated payment4
to be remitted by the holder to the insurer, falling due after one year from date of5
issue, may be made, subject, at the option of the insurer, to an interest charge thereon6
at a rate, to be specified in the contract, which shall not exceed six per cent percent7
per annum for the number of days of grace elapsing before such payment.8
(2) Entire contract: A provision in such contract specifying the document9
or documents which shall constitute the entire contract between the parties; the10
document or documents so specified shall be only: (a) the contract,; (b) the contract11
together with the application of the holder of which a copy is attached thereto,; or (c)12
the contract together with the application of the holder of which a copy is attached13
thereto and the individual applications of annuitants on file with the insurer and14
referred to therein.15
(3) Misstatement of age or sex: A provision in such contract, with an16
appropriate reference thereto in the certificate, for the equitable adjustment of the17
benefits payable under the contract or of the stipulated payments thereunder, if it18
befound that the sex, age, service, salary, or any other fact determining the amount19
of any stipulated payment or the amount or date or dates of payment of any benefit20
with respect to any annuitant covered thereby, has been misstated.21
(4) Ascertainment of the benefit: A provision or provisions in such contract,22
with an appropriate reference thereto in the certificate, specifying the nature and23
basis of ascertainment of the benefits which will be available to an annuitant who24
contributes to the cost of the annuity and the conditions of payment thereof in the25
event of either the termination of employment of the annuitant, except by death, or26
the discontinuance of stipulated payments under the contract. Such provision or27
provisions shall, in either of such events, make available to an annuitant who28
contributes to the cost of the annuity a paid-up annuity payable commencing at a29 HLS 11RS-110 ORIGINAL
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fixed date in an amount at least equal to that purchased by the contributions of the1
annuitant, determinable as of the respective dates of payment of the several2
contributions, as shown by a schedule included in the contract for that purpose, based3
upon the same mortality table, rate of interest, and loading formula used in4
computing the stipulated payments under such contract. Such provision or5
provisions may, by way of exception to the foregoing, provide that if the amount of6
the annuity determined as aforesaid from such fixed commencement date would be7
less than sixty dollars annually, the insurer may at its option, in lieu of granting such8
paid-up annuity, pay a cash surrender value at least equal to that hereinafter9
provided. If a cash surrender value, in lieu of such paid-up annuity, is allowed to the10
annuitant by the terms of such contract, it may be either in a single sum or in equal11
installments over a period of not more than twelve months and it shall be at least12
equal to either (a) or (b), whichever is less: (a) the amount of reserve attributable to13
the annuitant's contributions less a surrender charge not exceeding thirty-five per14
centum of the average annual contribution made by the annuitant; or (b) the amount15
which would be payable as a death benefit at the date of surrender. Such contract16
shall also provide that in case of the death of the annuitant, before the17
commencement date of the annuity, the insurer shall pay a death benefit at least18
equal to the aggregate amount of the annuitant's contributions, without interest. If19
any benefits are available to the holder in either of such events the contract shall20
contain a provision or provisions specifying the nature and basis of ascertainment of21
such benefits.22
(5) Certificates: A provision in such contract that the insurer will issue to23
the holder of the contract for delivery to each annuitant who contributes thereunder24
an individual certificate setting forth a statement in substance of the benefits to25
which he is entitled under such contract.26
* * *27 HLS 11RS-110 ORIGINAL
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§1541. Purpose and scope1
This Subpart shall govern the qualifications and procedures for the licensing2
of insurance producers. These provisions shall apply to any and all lines of3
insurance and types of insurers, including but not limited to life, health, property,4
liability, credit, title, fire, or marine, operating on a stock, mutual reciprocal, fraternal5
benefit, hospital, or medical service plan, as set forth in this Subpart.6
§1542. Definitions7
As used in this Subpart, unless the context requires otherwise, the following8
definitions shall be applicable:9
(1) "Authorized insurer" shall mean any type of insurer other than surplus10
lines or unauthorized insurer. have the same definition as set forth in R.S. 22:46.11
* * *12
(4) "Home state" shall mean the District of Columbia or any state or territory13
of the United States in which an insurance producer maintains his or her a principal14
place of residence or principal place of business and is licensed to act as an insurance15
producer.16
* * *17
(6) "Insurance producer" or "producer" shall mean a person required to be18
licensed under the laws of this state to sell, solicit, or negotiate insurance, and19
includes all persons or business entities otherwise referred to in the Louisiana20
Insurance this Code as "insurance agent" or "agent", or "insurance broker" or21
"broker", or "insurance solicitor" or "solicitor", or "surplus lines broker".22
* * *23
(9) "Limited line credit insurance" includes credit life, as defined in R.S.24
22:47(16) and R.S. 6:969.6(12), credit disability, credit property, credit25
unemployment, involuntary unemployment, mortgage life, mortgage guaranty, or26
mortgage disability insurance, and any other form of insurance offered in connection27
with an extension of credit that is limited to partially or wholly extinguishing that28 HLS 11RS-110 ORIGINAL
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credit obligation that the commissioner of insurance determines should be designated1
a form of limited line credit insurance.2
* * *3
(11) "Limited lines insurance" is any authority granted by the commissioner4
of insurance which restricts the authority of the licensee to less than the total5
authority prescribed in the associated major lines pursuant to R.S. 22:1547(A)(1)6
through (5) (6).7
* * *8
(14) "Negotiate" shall mean to confer directly with or to offer advice directly9
to a purchaser, certificate holder, or enrollee, or prospective purchaser, certificate10
holder, or enrollee, of a particular contract of insurance, including certificates, riders,11
endorsements, or amendments, concerning any of the benefits, terms, or conditions12
of the contract, provided that if the person engaged in that act is an insurance13
producer who either sells insurance or obtains insurance from insurers for14
purchasers, certificate holders, or enrollees.15
* * *16
(18) "Surplus lines broker" shall mean an insurance producer who solicits,17
negotiates, or procures a property and casualty policy with an insurance company not18
licensed to transact business in the state which cannot be procured from insurers19
licensed to do business in this state. All transactions entered into under such license20
shall be subject to R.S. 22:1902 431 et seq.21
* * *22
§1544. Exceptions to licensing; prohibitions23
* * *24
B. A license as an insurance producer shall not be required of the following:25
* * *26
(5) A person whose activities in this state are limited to advertising without27
the intent to solicit insurance in this state through communications in printed28
publications or other forms of electronic mass media whose distribution is not29 HLS 11RS-110 ORIGINAL
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limited to residents of this state, provided that if the person does not sell, solicit, or1
negotiate insurance that would insure risks residing, located, or to be performed in2
this state.3
(6) A person who is not a resident of this state who sells, solicits, or4
negotiates a contract of insurance for commercial property and casualty risks to an5
insured with risks located in more than one state insured under that contract,6
provided if that person is otherwise licensed as an insurance producer to sell, solicit,7
or negotiate that insurance in the state where the insured maintains its principal place8
of business and the contract of insurance insures risks located in that state.9
(7) A salaried full-time employee who counsels or advises his or her10
employer relative to the insurance interests of the employer or of the subsidiaries or11
business affiliates of the employer provided that if the employee does not sell or12
solicit insurance or receive a commission.13
(8) Employees of an insurer or of an insurance producer who respond to14
requests from existing policyholders, on existing policies, provided that if those15
employees are not directly compensated based on the volume of premiums that may16
result from these services and provided if those employees do not sell, solicit, or17
negotiate insurance.18
* * *19
D. No person shall be licensed as an insurance producer, limited lines20
producer, surplus lines broker, or managing general agent in this state if they, he or21
any person who owns directly or indirectly more than ten percent of the beneficial22
interest in a business entity applying for a license, are is either a citizen of, resident23
of, domiciled in, or the commissioner determines that they he or the beneficial owner24
maintain maintains significant assets in, a country that the commissioner determines25
does not give full faith and credit to any judgment rendered by a court of this state26
or of the United States, or that the country does not have laws similar to those of this27
state for the discovery of assets of the insurer, seizure or sale of such assets, and28
execution of a judgment thereof.29 HLS 11RS-110 ORIGINAL
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§1545. Examination1
* * *2
I.(1) The commissioner of insurance shall prepare, publicly announce, and3
publish a report that summarizes statistical information relating to life insurance4
agent producer examinations administered during the preceding calendar year. Each5
report shall include the following information for all examinees combined and6
separately by gender, race or ethnicity, race or ethnicity within gender, education7
level, and native language:8
* * *9
§1546. Application for license10
A. A person applying for a resident insurance producer license shall make11
application to the commissioner of insurance on the Uniform Application and declare12
under penalty of refusal, suspension, or revocation of the license that the statements13
made in the application are true, correct, and complete to the best of the individual's14
knowledge and belief. Before approving the application, the commissioner shall find15
that the individual:16
* * *17
(3) Is not disqualified for having committed any act that is a ground for18
denial, suspension, or revocation as set forth in R.S. 22:1554.19
* * *20
D.21
* * *22
(4) The commissioner of insurance shall treat and maintain an applicant's23
fingerprints and any criminal history record information obtained under this Section24
as confidential and shall apply security measures consistent with the Criminal Justice25
Information Services Division of the Federal Bureau of Investigation standards for26
the electronic storage of fingerprints and necessary identifying information and limit27
the use of records solely to the purposes authorized in this Section. The fingerprints28
and any criminal history record information shall be exempt from the public records29 HLS 11RS-110 ORIGINAL
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law, (R.S. 44:1 et seq.,) shall not be subject to subpoena, other than a subpoena1
issued in a criminal proceeding or investigation, and shall be confidential by law and2
privileged, and shall not be subject to discovery or admissible in evidence in any3
private civil action.4
* * *5
F. Any license issued pursuant to an application claiming residency, for6
licensing purposes, as defined herein, in R.S. 22:46, shall constitute an election of7
residency in the state, and shall be void if the licensee while maintaining a resident8
license also maintains a license in, or thereafter submits an application for a license9
in, any other state or other jurisdiction stating that the applicant is a resident of such10
other state or jurisdiction, or if the licensee ceases to be a resident of this state.11
§1547. License12
A. Unless denied licensure pursuant to R.S. 22:1554, persons who have met13
the requirements of this Subpart shall be issued an insurance producer license. An14
insurance producer may receive qualification for a license in one or more of the15
following lines of authority:16
* * *17
(10) Limited life, health and accident, which provides insurance coverage18
pursuant to R.S. 22:142. A license for limited life may allow the producer to sell life19
insurance in an amount not to exceed thirty thousand dollars when appointed by an20
insurer which meets the minimum financial requirements of, and is licensed pursuant21
to, R.S. 22:82(A)(1) or 112(A)(1), and when such policies are issued by said such22
insurer.23
* * *24
C.25
* * *26 HLS 11RS-110 ORIGINAL
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(2) Any licensee who fails to file timely for license renewal shall be charged1
a late fee of twenty-five dollars, or other such amount as may be authorized by R.S.2
22:821, for each license not renewed timely.3
* * *4
D. An insurance producer who allows his or her license to lapse may, within5
five years from the expiration date of the license, reinstate the same license upon6
proof of fulfilling all continuing education requirements through the date of7
reinstatement and upon payment of all fees due. If the license has been lapsed for8
more than five years, the applicant shall fulfill the requirements for issuance of a new9
license.10
E. A licensed insurance producer who is unable to comply with license11
renewal procedures due to military service or some other extenuating circumstance,12
such as a long-term medical disability, may request a waiver of those procedures.13
The producer may also request a waiver of any examination requirement or any other14
fine or sanction imposed for failure to comply with renewal procedures.15
* * *16
G. Every licensee shall notify the commissioner, by any means acceptable17
to the commissioner, of any alteration in his residential, mailing, or business address18
within ten days of the alteration. Failure to file an address change within the19
required time shall result in the imposition of a fifty-dollar penalty per violation, or20
as may be authorized by R.S. 22:821. Any person against whom a penalty has been21
levied shall be given due notice of such action. Upon receipt of this notice, the22
licensee may apply for and shall be entitled to a hearing in accordance with Chapter23
12 of this Title, R.S. 22:2191 et seq.24
H. A duplicate license may be issued for any lost, stolen, or destroyed25
license issued pursuant to this Subpart upon a request by the licensee, by a method26
prescribed by the commissioner, setting forth the facts of such loss, theft, or27
destruction, together with a fee of five dollars, or such amount as may be authorized28
by R.S. 22:821.29 HLS 11RS-110 ORIGINAL
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I. Any licensed property and casualty insurance producer maintaining an1
office at a designated location in this state and having at least two years experience2
in the insurance business with an insurer or as an insurance producer may be licensed3
as a surplus lines broker as follows:4
* * *5
(3) Passage of The applicant shall pass an examination approved by the6
commissioner of insurance.7
* * *8
§1548. Nonresident licensing9
A. Unless denied licensure pursuant to R.S. 22:1554, a nonresident person10
shall receive a nonresident producer license if:11
(1) The person is currently licensed as a resident and in good standing in his12
or her home state.13
* * *14
(3) The person has submitted or transmitted to the commissioner of15
insurance the application for licensure that the person submitted to his or her home16
state, or in lieu of the same, a completed Uniform Application.17
* * *18
B.19
* * *20
(2) Whenever, by the laws or regulations of any other state or jurisdiction,21
any limitation of rights and privileges, conditions precedent, or any other22
requirements are imposed upon residents of this state who are nonresident applicants23
or licensees of such other state or jurisdiction in addition to, or in excess of, those24
imposed on nonresidents under this Subpart, the same such requirements shall be25
imposed upon such residents of such other state or jurisdiction.26
(3)27
* * *28 HLS 11RS-110 ORIGINAL
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(b) The service of process upon any such licensee in any action or1
proceeding in any court of competent jurisdiction may be made by a party serving2
the commissioner of insurance with appropriate copies thereof and the payment to3
him of a the fee of twenty-five dollars, or as may be authorized by R.S. 22:821.4
* * *5
D.6
* * *7
(2) Except as provided by Subsection A of this Section, nothing in this8
Section otherwise amends or supersedes any provision of R.S. 22:1902 431 et seq.9
E. Notwithstanding any other provision of this Subpart, a person licensed as10
a limited line credit insurance or other type of limited lines producer in his home11
state shall receive a nonresident limited lines producer license, pursuant to12
Subsection A of this Section, granting the same scope of authority as granted under13
the license issued by the producer's home state. For the purposes of this Subsection,14
limited line insurance is any authority granted by the home state which restricts the15
authority of the licensee to less than the total authority prescribed in the associated16
major lines pursuant to R.S. 22:1547(A)(1) through (5)(6).17
§1549. Specialty limited lines credit insurance18
* * *19
B. For a specialty limited lines credit insurance producer license to be issued20
pursuant to this Section, an applicant must submit to the commissioner all of the21
following:22
* * *23
(4) An application fee in the amount of one thousand dollars, or for an24
applicant registering twenty or fewer employees or representatives, an application25
fee in the amount of two hundred fifty dollars, or such other amount as may be26
authorized by as set forth in R.S. 22:821.27
(5) Upon approval of the application, but prior to issuance of the license, the28
applicant shall submit a registration fee of twenty dollars per employee or29 HLS 11RS-110 ORIGINAL
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representative to be registered by the licensee; however, the registration fee shall not1
exceed two thousand five hundred dollars annually for each licensee. as set forth in2
R.S. 22:821.3
C. Following initial issuance of the specialty limited lines credit insurance4
producer license, the licensee shall submit an annual renewal application, in a5
manner prescribed by the commissioner, along with an annual renewal fee of five6
hundred dollars, or for a licensee registering twenty or fewer employees or7
representatives, an annual renewal fee of one hundred twenty-five dollars, and an8
annual renewal registration fee of ten dollars per employee or representative of the9
licensee, or such other amounts as may be authorized by the fee as set forth in R.S.10
22:821.11
D. The licensee shall submit, in a manner prescribed by the commissioner,12
a current list of employees and representatives for verification by the commissioner13
every six months, in addition to an initial the registration fee of twenty dollars per14
required by R.S. 22:821 for every employee or representative not previously15
registered.16
E. A specialty limited lines credit insurance producer license issued pursuant17
to this Section authorizes an employee or representative of the license holder to18
participate in enrollment of retail sales and credit customers in the types of insurance19
specified in this Section without being licensed, provided if all of the following is20
are true:21
* * *22
F. A specialty limited lines credit insurance producer may not in any manner23
advertise, represent, or otherwise hold out any employee or representative of the24
license holder as a licensed insurance agent producer pursuant to another provision25
of this Subpart, unless the entity or individual actually holds the applicable license.26
* * *27
H. The specialty limited lines credit insurance producer license shall be28
available equally to residents and nonresidents, provided that; however, if the laws29 HLS 11RS-110 ORIGINAL
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or regulations of any other state would not permit a specialty limited lines credit1
insurance producer that is a resident of this state to obtain a substantially equivalent2
nonresident license, then residents of that state shall not be permitted to obtain a3
specialty limited lines credit insurance producer license as nonresidents under this4
Section.5
* * *6
§1550. Specialty limited lines motor vehicle title insurance producer licenses7
A.8
* * *9
(2) No producer shall sell, solicit, or negotiate motor vehicle title insurance10
pursuant to a specialty limited lines motor vehicle title insurance producer license11
other than in connection with retail sales of motor vehicles wherein in which the12
transaction exceeds one thousand dollars and as provided in rules and regulations13
adopted by the commissioner of insurance.14
* * *15
B.(1) For a specialty limited lines motor vehicle title insurance producer16
license to be issued pursuant to this Section, an applicant must shall submit to the17
commissioner of insurance all of the following:18
* * *19
(d) An application fee in the amount of one thousand dollars, or for an20
applicant registering twenty or fewer employe es or representatives, an application21
fee in the amount of two hundred fifty dollars, or such other amount as may be22
authorized by set forth in R.S. 22:821.23
(2) Upon approval of the application, but prior to issuance of the license, the24
applicant shall also submit a registration fee of twenty dollars per employee or25
representative to be registered by the licensee; however, the registration fee shall not26
exceed two thousand five hundred dollars annually for each licensee. in the amount27
set forth in R.S. 22:821.28 HLS 11RS-110 ORIGINAL
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C. Following initial issuance of the specialty limited lines motor vehicle title1
insurance producer license, the licensee shall submit an annual renewal application,2
in a manner prescribed by the commissioner of insurance, along with an annual3
renewal fee of five hundred dollars, or for a licensee registering twenty or fewer4
employees or representatives, an annual renewal fee of one hundred twenty-five5
dollars, and an annual renewal registration fee of ten dollars per employee or6
representative of the licensee, or such other amounts as may be authorized by as set7
forth in R.S. 22:821.8
D. The licensee shall submit, in a manner prescribed by the commissioner9
of insurance, a current list of employees and representatives for verification by the10
commissioner every six months in addition to an initial a registration fee of twenty11
dollars per as required by R.S. 22:821 for every employee or representative not12
previously registered.13
E. A specialty limited lines motor vehicle title insurance producer license14
issued pursuant to this Section authorizes an employee or representative of the15
license holder to participate in enrollment of retail motor vehicle sales customers in16
the types of insurance specified in this Section without being licensed, provided if17
all of the following is are true:18
* * *19
H. The specialty limited lines motor vehicle title insurance producer license20
shall be available equally to residents and nonresidents, provided that; however, if21
the laws or regulations of any other state would not permit a specialty limited lines22
motor vehicle title insurance producer that is a resident of this state to obtain a23
substantially equivalent nonresident license, then residents of that state shall not be24
permitted to obtain a specialty limited lines motor vehicle title insurance producer25
license as nonresidents under this Section.26
* * *27 HLS 11RS-110 ORIGINAL
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§1554. License denial, nonrenewal, or revocation1
* * *2
G. Upon suspension, revocation, or termination of the license of a resident3
of this state, the commissioner shall notify the support and services office of the4
National Association of Insurance Commissioners and the proper insurance official5
of each state for whom the commissioner has executed a certificate as provided for6
herein.7
* * *8
§1555. Liability of agents producers on binder 9
The commissioner of insurance may suspend or revoke the license of any10
agent producer issuing or purporting to issue any binder as to on behalf of any11
insurer named therein as to for which he is not then authorized so to bind.12
§1556. License to solicit or transact bail; prohibited activities13
A. A bail licensee bond producer shall not directly or indirectly permit any14
person, including an employee, to sign or execute a power of attorney or to effect the15
undertaking of bail for the release of a defendant or to apprehend or surrender a16
defendant on his behalf unless the person is properly licensed by the commissioner17
to perform such acts. This Section shall not prevent a bail bond producer from using18
mail, messenger or delivery service to file executed undertakings of bail or deliver19
bail bonds, nor shall it prevent such filing or delivery by the attorney or other agent20
of the defendant.21
B. A bail licensee bond producer shall not directly or indirectly give a gift22
of any kind to a prisoner of a jail or place of detention or to a public official or23
employee of a governmental agency whose duties, functions, or responsibilities24
include the administration of justice.25
C. Upon first violation, a person or entity that violates Subsection A of this26
Section shall be subjected to a six-month suspension of their license to write or27
solicit bail bonds and fined an amount not to exceed five thousand dollars. A second28
or any subsequent violation shall subject the person or entity to a suspension of their29 HLS 11RS-110 ORIGINAL
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license to write or solicit bail bonds for not more than one year and a fine not to1
exceed ten thousand dollars. A hearing may be requested pursuant to the provisions2
of Chapter 12 of this Title, subject to the provisions of Chapter 13-B of Title 49 of3
the Louisiana Revised Statutes of 1950.4
* * *5
§1557. Commissions6
* * *7
B.(1) No member of an insurance advisory committee of any state agency,8
board, commission, or of any political subdivision of this state, including but not9
limited to school boards, levee boards, deep water port commissions, deep water10
port, harbor and terminal districts, and the Louisiana Stadium and Exposition11
District, shall split, pass on, or share with any insurance producer or other person12
who is not a member of his own firm or corporation and is not a member of said such13
an insurance advisory committee, all or any portion of the commission derived by14
such committee from the purchase of insurance by such state agency, board,15
commission, or political subdivision of the state without express authorization by16
official action of such state agency, board, commission, or political subdivision of17
the state. Any insurance producer or other person who is not a member of such firm18
or corporation and is not a member of said such an insurance advisory committee19
who receives without authorization all or any portion of such commission shall also20
be in violation of this Subsection.21
(2) Any violator of person who violates the provisions of this Subsection22
shall, upon conviction, be fined not less than one thousand dollars, nor more than23
five thousand dollars per violation, or imprisoned for not more than two years, or24
both.25
C. The commission paid by each fire, casualty, surety, fidelity, guaranty, and26
bonding insurer doing business in this state to its producers in this state shall be27
uniform and equal as to all classes of producers of such insurer throughout this state.28 HLS 11RS-110 ORIGINAL
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§1558. Appointments1
* * *2
B.3
* * *4
(3) Each insurer shall submit to the commissioner of insurance, in a manner5
prescribed by the commissioner, a list of appointed producers which it intends to6
appoint or reappoint. Each insurer shall remit, in a manner prescribed by the7
commissioner, appointment fees in the amount amounts set forth in R.S. 22:821.8
Any insurer who fails to file its renewal company appointments will be fined ten9
dollars per license named in its appointment form, or as otherwise authorized by R.S.10
22:821.11
(4) An appointment as provided herein for in this Section shall remain in full12
force and effect until the following date of recordation, renewal, unless the license13
of the appointed producer named therein is revoked by the commissioner as provided14
for in this Subpart, or until canceled by the insurer upon written notice to the15
producer with a copy thereof filed with the commissioner.16
* * *17
C. Any insurance producer, unless otherwise prohibited by contract, licensed18
in this state, may solicit, negotiate, or effect applications for policies of insurance19
with any insurer lawfully doing business in this state, other than an insurer such20
producer is licensed appointed to represent, if such producer is under contract with21
such insurer. However, no commissions shall be paid by such company insurer to22
the producer until such time as notice of recordation of the appointment with respect23
to such producer has been received by the producer from has been recorded by the24
commissioner.25
D. If any producer is operating or intends to operate its business affairs as26
a partnership, corporation, or other business entity, the appointments herein in this27
Section may be issued by an insurer in the name of such partnership, corporation, or28
other business entity, upon application, to be licensed as an insurance producer under29 HLS 11RS-110 ORIGINAL
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this Subpart, provided if all persons in said such partnership, corporation, or other1
business entity actively engaged in soliciting, negotiating, or effecting contracts of2
insurance or renewals thereof also hold an unexpired producer's active3
producer license issued in accordance with the provisions of this Subpart.4
§1559. Notification to commissioner of termination5
* * *6
C. The insurer or the authorized representative of the insurer shall promptly7
notify the commissioner of insurance, in a manner acceptable to the commissioner,8
if, upon further review or investigation, the insurer discovers additional information9
that would have been reportable to the commissioner of insurance in accordance with10
Subsection B of this Section had the insurer then known of its existence.11
D.(1) Within fifteen days after making any notification required by12
Subsections A, B, or C, of this Section, the insurer shall mail a copy of the13
notification to the producer at his last known address. If the producer is terminated14
for cause for any of the reasons specified in R.S. 22:1554, the insurer shall provide15
a copy of the notification to the producer at his last known address by certified mail,16
return receipt requested, postage prepaid or by overnight delivery using a nationally17
recognized carrier.18
* * *19
E.(1) In the absence of actual malice, neither an insurer, the authorized20
representative of the insurer, a producer, the commissioner of insurance, nor or any21
organization of which the commissioner is a member and that compiles the22
information and makes it available to other state insurance officials or regulatory or23
law enforcement agencies, shall not be subject to civil liability., and a No civil cause24
of action of any nature shall not arise against these entities or their respective agents25
producers or employees, as a result of any statement or information required by or26
provided pursuant to this Section or any information relating to any statement that27
may be requested in writing by the commissioner, from an insurer or producer; or a28
statement by a terminating insurer or producer to an insurer or producer limited29 HLS 11RS-110 ORIGINAL
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solely and exclusively to whether a termination for cause under pursuant to1
Subsection B of this Section was reported to the commissioner, provided that if the2
propriety of any termination for cause under pursuant to Subsection B of this Section3
is certified in writing by an officer or authorized representative of the insurer or4
producer terminating the relationship.5
* * *6
§1562. Prohibited acts7
* * *8
C.(1) It shall be unlawful for any person or business entity, without9
conforming to the provisions of this Part, directly or indirectly, to represent himself10
or itself to be an insurance producer or limited lines producer, or to solicit, negotiate,11
or effect any contract of insurance or renewal thereof, or to attempt to effect the12
same on any property, or risk or insurable interests or business activities, located13
within or transacted within this state. This Subsection shall not apply to:14
* * *15
(b) Employees of insurance companies insurers who solicit insurance only16
for or in conjunction with licensed insurance producers compensated on a17
commission basis.18
* * *19
(d) Employees of insurance companies insurers who do not solicit insurance20
but are authorized by their employer to sign policies of insurance.21
* * *22
E.23
* * *24
(2) Except as hereinafter provided in Paragraph (3) of this Subsection, any25
person or business entity shall be liable for the full amount of any loss sustained on26
any contract of insurance made by or through him or it, directly or indirectly, with27
any insurer not lawfully authorized to transact business in this state, and for any28
taxes which may become due under any law of this state by reason of such contract.29 HLS 11RS-110 ORIGINAL
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For purposes of this Section, any surplus lines insurer which is approved by the1
commissioner shall be considered lawfully authorized to transact business in this2
state.3
* * *4
H. No insurer, agent, or broker producer shall accept or process an5
application for coverage under a Medicare+Choice plan unless the following6
requirements are met:7
* * *8
(4) The Medicare enrollee is notified of any known change in health care9
providers that may reasonably result from the action of the agent or broker. producer.10
* * *11
§1564. Producers of record12
A.13
* * *14
(2) This Subsection establishes an agency relationship only for the matter of15
collection of premiums specifically referred to herein. in this Section.16
B.(1)(a) Any insurance company authorized to transact property, casualty,17
accident, or health insurance or bond business in this state or insurer issuing or18
delivering property, casualty, accident, or health insurance, or bonds in this state19
shall recognize a producer of record when selected by the owner of the policy or the20
first-named insured if there are multiple-named insureds in writing. The insurer21
shall recognize the producer of record for purposes of providing quotations or22
proposals or writing such policies or bonds. The insurer shall retain the producer of23
record who wrote such policies or bonds for the full term of the contracts or until the24
renewal date or termination of the contracts, whichever occurs first. The insurer25
shall not change or remove such producer by any producer of record letter which26
may be secured by another producer for purposes of providing a quotation or27
proposal or for writing such policies or bonds during the term of such contracts until28
the renewal date of the contracts, unless the change or removal is requested by the29 HLS 11RS-110 ORIGINAL
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owner of the policy or the first-named insured if there are multiple-named insureds1
under a particular contract. In such case, such owner or insured shall select the new2
producer of record.3
* * *4
C. The provisions of this Section shall not apply to individually5
underwritten, guaranteed renewable limited benefit health insurance policies. or6
contracts authorized to be issued in this state.7
* * *8
§1571. Registered insurance agent producer and bail agent bond producer9
prelicensing program10
A.(1) The commissioner shall certify an educational program that meets the11
requirements of this Subpart and any rules or regulations promulgated pursuant to12
this Subpart as a registered insurance agent producer or bail agent bond producer13
prelicensing program. Any person who satisfactorily completes an educational14
program which has been certified as a registered insurance agent producer or bail15
agent bond producer prelicensing program pursuant to this Subpart shall satisfy the16
preexamination educational requirements of R.S. 22:1571(E).17
(2) For purposes of this Subpart, "bail agent bond producer" shall mean any18
person, corporation, or partnership which holds an insurance license and has a19
contract and an appointment from an insurance company insurer licensed and20
authorized to provide surety in Louisiana.21
B. The commissioner shall promulgate rules and regulations setting forth22
guidelines and requirements for the content and conduct of a registered insurance23
agent or bail agent bond producer prelicensing program and for the procedure for24
certification of an instructional program as a registered insurance agent producer or25
bail bond producer prelicensing program. The commissioner shall also promulgate26
rules and regulations specifying the qualifications which each instructor in a27
registered insurance agent producer or bail agent bond producer prelicensing28
program shall possess. All such rules and regulations promulgated by the29 HLS 11RS-110 ORIGINAL
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commissioner shall be promulgated pursuant to the provisions of the Administrative1
Procedure Act.2
C. Each registered insurance agent producer or bail agent bond producer3
prelicensing program shall be conducted by one of the following:4
(1) An insurance trade association;.5
(2) An insurance company admitted to do business in Louisiana ;.6
(3) An accredited public or private college or university; or.7
(4) An organization recommended by and certified by the commissioner of8
insurance.9
D. Each instructor in a registered insurance agent producer or bail bond10
producer prelicensing program shall possess the qualifications promulgated by the11
commissioner of insurance for instructors in such programs.12
E.(1) Each registered insurance agent producer or bail bond producer13
prelicensing program shall provide instruction by a qualified instructor in a14
structured setting or by verifiable approved self-study with a minimum of twenty15
hours of supervised instruction or self-study, including instruction in applicable16
insurance principles, state laws and regulations, and ethical practices, for each of the17
following lines of authority a license is sought: life, health and accident, property,18
casualty, and personal lines.19
(2) Each registered bail agent bond producer prelicensing program shall20
provide instruction by a qualified instructor in a structured setting with a minimum21
of eight hours of supervised instruction, including instruction in applicable22
underwriting principles, state laws and regulations, and ethical practices.23
F. While instruction is in progress in a registered insurance agent producer24
or bail agent bond producer prelicensing program, the instructor shall permit the25
commissioner, any member of the Insurance Education Advisory Council, and or any26
employee of the Department of Insurance to attend any educational session. Such27
access shall be for the purpose of monitoring the instruction and program and shall28
not be disruptive to the instruction. Any person who attends any educational session29 HLS 11RS-110 ORIGINAL
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pursuant to the authority of this Subsection shall do so in an official capacity only.1
No information or materials shall be used for any personal reasons or gain.2
G. The director or supervisor of each registered insurance agent producer or3
bail agent bond producer prelicensing program shall submit its current course4
materials to the commissioner of insurance for his review upon his request but no5
less frequently than every three years.6
H. In accordance and compliance with R.S. 49:961, the commissioner may7
cancel or suspend the certification of any registered insurance agent or bail agent8
bond producer prelicensing program which does not meet the requirements of this9
Subpart or of any of the rules or regulations promulgated pursuant to this Subpart.10
Such cancellation or suspension shall be made after notice and an opportunity for11
hearing. An aggrieved party affected by the commissioner's decision, act, or order12
may demand a hearing in accordance with Chapter 12 of this Title, R.S. 22:2191 et13
seq.14
§1573. Continuing education requirements15
* * *16
C. Beginning with renewals effective in 2010, life insurance agents17
producers and health insurance agents producers shall complete twenty-fou r hours18
of approved instruction or verifiable approved self-study prior to each renewal of19
license, with at least three hours dedicated to the subject of ethics.20
D. Beginning with renewals effective in 1993, insurance brokers, solicitors,21
and agents Insurance producers authorized to write property, casualty, or property22
and casualty or personal lines insurance business shall complete twenty-four hours23
of approved instruction or verifiable approved self-study before each renewal of24
license. Beginning with renewals effective in 2007, three hours of approved25
instruction shall be dedicated to flood insurance. Beginning with renewals effective26
in 2011, with at least three hours of approved instruction shall be dedicated to the27
subject of ethics.28 HLS 11RS-110 ORIGINAL
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E. For brokers, solicitors, and agents producers authorized both to write life,1
health and accident insurance and authorized to write property, casualty, or property2
and casualty or personal lines insurance business, the continuing education3
requirement for renewal of license shall be twenty-four hours of approved instruction4
or verifiable approved self-study. Beginning with renewals effective in 2011, with5
at least three hours of approved instruction or verifiable approved self-study shall be6
dedicated to the subject of ethics.7
F.(1) For bail agents and solicitors bond producers, the continuing education8
requirement for renewal of license shall be twelve hours of approved bail9
underwriting instruction.10
G. No more than ten excess hours of approved property and casualty11
insurance instruction and no more than ten excess hours of approved life, and health,12
and accident insurance instruction accumulated during the previous one renewal13
period may be carried forward and applied to the continuing education requirement14
for the next renewal period.15
* * *16
I.(1)(a) The provisions of this Section, imposing continuing education17
requirements for renewal of a license, shall not apply to any person sixty-five years18
of age or older on January 1, 2012, who has at least fifteen years of experience as a19
licensed agent, broker, or solicitor, producer and who either:20
(i) Is no longer actively engaged in the insurance business as an agent,21
broker, or solicitor a producer and who is receiving social security benefits, if22
eligible.23
(ii) Is actively engaged in the insurance business as an agent, broker, or24
solicitor a producer and who represents or operates through a licensed Louisiana25
insurer.26
* * *27 HLS 11RS-110 ORIGINAL
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K. The department may grant four continuing education credits, as1
determined by the commissioner, to a licensed agent or broker producer who is a2
member of, and actively participates in, a state or national insurance association.3
L. Beginning with renewals effective in 2006, title insurance agents, Title4
producers licensed pursuant to Subpart R of Part I of Chapter 2 of this Title, R.S.5
22:511 et seq., shall complete six hours of approved instruction prior to the renewal6
of the license.7
M. Any agent, property and casualty producer, upon receiving his initial8
license, shall complete three hours of approved instruction dedicated to flood9
insurance on his first license renewal when continuing education is required.10
§1574. Bail Bond Apprentice Program11
A.(1) The Bail Bond Apprentice Program is hereby created.12
(2) The Bail Bond Apprentice Program shall be available only to persons13
who meet current bail bond producer licensing requirements as provided for in14
Chapter 5 of this Title and who have not been convicted of a felony.15
(3) Apprentices shall complete the registered insurance producer and bail16
bond producer prelicensing program as provided for in R.S. 22:1571 before the end17
of the apprenticeship program.18
B. The Bail Bond Apprentice Program shall consist of six consecutive19
months of employment by a Louisiana Department of Insurance licensed bail bond20
producer. The apprentice shall be supervised by the producer during the six-month21
period and work for no less than twenty-four hours per week. The apprentice shall22
observe the bail bond producer, perform every phase of the bail bond business, and23
shall perform duties in every phase of the bail bond business except for the24
solicitation, negotiation, quotation of fees, and the execution of a bail bond.25
C. The supervising bail bond producer shall maintain records to support that26
the apprentice has worked the required number of hours. These records shall include27
time sheets and pay stubs, and shall be made available for examination and review28
to the Department of Insurance upon request.29 HLS 11RS-110 ORIGINAL
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D.(1) Upon completion of the required six months of work experience,1
without expulsion, the apprentice and the supervising bail bond producer shall2
certify, on a form provided by the Department of Insurance, that the apprentice has3
completed all of the requirements of the apprentice program. This form shall be a4
notarized sworn affidavit, completed under penalty of perjury.5
* * *6
§1575. Producer training requirements to sell long-term care insurance7
* * *8
C.9
* * *10
(2) Insurers shall maintain records with respect to the training of its11
producers concerning the distribution of its partnership policies that will allow the12
state insurance department to provide assurance to the state Medicaid agency that13
producers have received the training contained in Subparagraph (B)(2)(a) of this14
Section as required by Subsection A of this Section and that producers have15
demonstrated an understanding of the partnership policies and their relationship to16
public and private coverage of long-term care, including Medicaid, in this state. The17
aforementioned These records shall be maintained in accordance with the state's18
record retention requirements and shall be made available to the commissioner upon19
request.20
D. The satisfaction of said such training requirements in any state shall be21
deemed to satisfy the training requirements in this state.22
* * *23
§1583. Licensing and fees24
Except as provided by the regulations authorized in this Subpart, bail25
enforcement agents shall be subject to the same licensing and fee requirements as26
bail bond insurance agents. producers.27 HLS 11RS-110 ORIGINAL
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§1584. Bond Bail bond producers; prohibitions; penalties1
* * *2
§1585. Surrender for nonpayment of premium3
* * *4
C. Upon first violation, a bail bond producer who surrenders a client for5
nonpayment of a premium in violation of this Section shall be subject to a suspension6
of his license for not more than six months and fined an amount not to exceed five7
thousand dollars. A second or any subsequent violation may be punishable by8
permanent revocation of the bail bond producer's license and a fine not to exceed ten9
thousand dollars.10
* * *11
§1591. Short title12
This Chapter Subpart may be cited as the "Financial Institution Insurance13
Sales Law".14
§1592. Purpose15
The legislature hereby declares that the purpose of this Chapter Subpart is to16
regulate the business of insurance in Louisiana and to protect the interests of17
insurance policyholders in this state.18
§1593. Definitions19
A. For the purposes of this Chapter: Subpart:20
(1) "Financial institution" means a state or national bank or branch thereof21
which accepts federally insured deposits or makes loans from a place of business22
located in the state of Louisiana or any subsidiary or employee thereof, or a bank23
holding company or subsidiary or employee thereof, only if the bank holding24
company owns or controls a state or national bank or branch thereof which accepts25
federally insured deposits or makes loans from a place of business located in the26
state of Louisiana. The term financial institution does not include a bank which was27 HLS 11RS-110 ORIGINAL
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engaged as an insurance agent producer on January 1, 1984, or an insurance1
company.2
* * *3
§1594. Applicability4
The provisions of this Chapter Subpart shall not apply to the following:5
* * *6
§1595. Authorization for implementing regulations7
The commissioner of insurance shall have the authority to promulgate rules8
and regulations in accordance with the authority granted by the Administrative9
Procedure Act as may be necessary to effectuate the provisions of this Chapter.10
Subpart. However, the commissioner of insurance shall not impose any additional11
requirement on any insurance agent or broker producer who is associated with a12
financial institution that is not imposed on any insurance agent producer who is not13
associated with such institution unless such requirement is set forth in this Chapter.14
Subpart.15
* * *16
§1597. Sales force17
The solicitation of a customer of a financial institution for the purchase or18
sale of insurance shall not be conducted by any natural person directly responsible19
for making a specific loan or extension of credit to that customer before such time20
as the final decision regarding the acceptance or denial of that specific loan or21
extension of credit is made and communicated in writing to the customer. For the22
purposes of this Chapter, Subpart, solicitation does not include referral of the23
customer to a licensed insurance agent producer not directly responsible for making24
the specific loan or extension of credit, informing the customer that the required25
insurance is available from the financial institution, or providing the customer with26
any disclosures which are required by R.S. 22:1600.27 HLS 11RS-110 ORIGINAL
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§1598. Referrals1
* * *2
C. Any person or entity responsible for making a specific loan or extension3
of credit may receive a reasonable referral fee for the insurance referral of a4
customer who is required to provide insurance for that loan or extension of credit.5
An insurance referral fee paid to such person or entity making a specific loan or6
extension of credit shall not be in the form of an insurance sales commission which7
varies based on the quotation or application for insurance, purchase of insurance, or8
the amount of premium written. The insurance referral fee shall be paid solely on9
the basis of the referral. This Section shall not preclude a person directly or10
indirectly responsible for making a specific loan or extension of credit, who is a11
licensed insurance producer, from soliciting and selling insurance to a loan customer12
and earning a commission, so long as the solicitation and sale is conducted after the13
final loan decision has been communicated to the customer in writing, in accordance14
with the provisions of R.S. 22:1597. The customer shall also be notified that they15
are he is not required to purchase insurance through the financial institution, and the16
customer's choice of another insurance provider will not affect the financial17
institution's credit decision or credit terms in any way.18
§1599. Insurance as a condition to service19
A. A financial institution shall not in any manner extend credit, lease, or sell20
property of any kind, or furnish any service, or fix or vary the consideration for any21
of the foregoing, on the condition or requirement that the customer shall obtain22
insurance from the financial institution. In accordance with the foregoing, provisions23
of this Subpart, the financial institution shall not represent that the purchase of an24
insurance product from a financial institution by a customer or prospective customer25
of the institution is required as a condition of, or is any way related to, the lending26
of money or extension of credit, the establishment or maintenance of a trust account,27 HLS 11RS-110 ORIGINAL
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the establishment or maintenance of a checking, savings, or deposit account, or the1
provision of services related to any such activities.2
* * *3
C. The following activities conducted in accordance with the provisions of4
this Chapter Subpart shall not violate the provisions of this Section:5
* * *6
§1600. Disclosures; Disclosure; required7
* * *8
B. The financial institution shall give the customer the disclosures disclosure9
provided in Subsection A of this Section when it first informs the customer that10
required insurance is available from the financial institution if:11
* * *12
§1603. No discrimination against non-affiliated agents producers13
No financial institution may:14
(1) Offer a banking product or service, or fix or vary the conditions of such15
offer, on a condition or requirement that the customer obtain insurance from any16
particular agent or broker. producer.17
* * *18
(3) Impose any unreasonable requirement on any insurance agent or broker19
producer who is not associated with the financial institution that is not imposed on20
any insurance agent producer who is associated with such institution.21
§1604. Customer privacy; protections22
A. As used in this Section, unless the context requires otherwise:23
* * *24
(2) "Nonpublic customer information" means information maintained by a25
financial institution relating to insurance coverage purchased by a customer from an26
insurer, insurance agency, or insurance agent producer that is not affiliated with the27
financial institution. "Nonpublic customer information" does not include customer28
names, addresses and telephone numbers, or any information relating to deposit or29 HLS 11RS-110 ORIGINAL
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investment accounts, loans, or other extensions of credit, or the credit history or1
financial condition of a customer. Nonpublic customer information includes2
information concerning insurance escrow accounts, insurance premiums, the terms3
and conditions of insurance coverage, insurance expirations, insurance claims, and4
insurance history of an individual, when such information relates to insurance5
coverage purchased by a customer from an insurer, insurance agency, or insurance6
agent producer that is not affiliated with that financial institution.7
* * *8
§1605. Unfair trade practice9
Failure to comply with any of the provisions of this Chapter Subpart shall be10
an unfair method of competition and an unfair or deceptive act or practice subject to11
regulation by the commissioner of insurance as provided by law, including R.S.12
22:1554 and 1967 through 1972.13
* * *14
§1622. Definitions15
As used in this Part, unless the context requires otherwise, the following16
definitions shall be applicable: 17
A. (1) "Actuary" means a person who is a member in good standing of the18
American Academy of Actuaries.19
B. (2 ) "Commissioner" means the commissioner of insurance of this state.20
as defined in R.S. 22:46.21
C. (3) "Insurer" means any person , firm, association, or corporation duly22
licensed in this state as an insurer pursuant to this Chapter.23
D.(1) (4)(a) "Managing General Agent" (MGA) means any person , firm,24
association, or corporation who manages all or part of the insurance business of an25
insurer, including the management of a separate division, department, or26
underwriting office, and acts as an agent for such insurer whether known as a27
managing general agent, manager, or other similar term, who, with or without the28
authority, either separately or together with affiliates, produces, directly or indirectly,29 HLS 11RS-110 ORIGINAL
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and underwrites an amount of gross direct written premium equal to or more than1
five percent of the policyholder surplus as reported in the last annual statement of the2
insurer in any one quarter or year together with one or more of the following:3
(a) (i) Adjusts or pays claims in excess of an amount determined by the4
commissioner; or. 5
(b) (ii) Negotiates reinsurance on behalf of the insurer.6
(2) (b) Notwithstanding the above, the preceding provisions of this7
Subsection, the following persons shall not be considered as MGAs for the purposes8
of this Part:9
(a) (i) An employee of the insurer.10
(b) (ii) A United States manager of the United States branch of an alien11
insurer.12
(c) (iii) An underwriting manager, which, pursuant to contract, manages all13
the insurance operations of the insurer, is under common control with the insurer,14
subject to the Insurance Holding Company System Regulatory Act, Law, R.S. 22:69115
et seq. and whose compensation is not based on the volume of premiums written.16
(d) (iv) The attorney authorized by and acting for the subscribers of a17
reciprocal insurer or inter-insurance exchange under powers of attorney.18
E. "Underwrite" means the authority to accept or reject risk on behalf of the19
insurer.20
(5) "Person" shall have the same meaning as set forth in R.S. 22:1542.21
F. (6) "Producer"or "insurance producer" means a person currently licensed22
as a property and casualty agent, producer in accordance with the provisions of this23
Title, who is properly appointed to represent the insurer for the lines of insurance for24
which he is performing the duties of a managing general agent as defined herein. in25
this Part.26
(7) "Underwrite" means the authority to accept or reject risk on behalf of the27
insurer.28 HLS 11RS-110 ORIGINAL
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§1623. Licensure; registration1
A. No person, firm, association, or corporation shall act in the capacity of an2
MGA with respect to risks located in this state for an insurer licensed in this state3
unless such person is a licensed producer in this state.4
B. No person, firm, association, or corporation shall act in the capacity of an5
MGA representing an insurer domiciled in this state with respect to risks located6
outside this state unless such person is licensed as a resident or nonresident producer7
in this state pursuant to the provisions of this Part.8
* * *9
D. No person, firm, association, or corporation shall act in the capacity of an10
MGA in this state unless such person, firm, association, or corporation has registered11
his name, current residential address, current mailing address, and current business12
address with the commissioner, on forms prescribed by the commissioner, together13
with a fee in the amount set forth in R.S. 22:821.14
* * *15
F. If a person, firm, association, or corporation fails to provide any of the16
information required under pursuant to this Section, the commissioner may, after17
notification by the commissioner to the person, firm, association, or corporation by18
certified mail of such failure, impose a fine not to exceed fifty dollars.19
* * *20
§1624. Required contract provisions21
A. No person, firm, association, or corporation acting in the capacity of an22
MGA shall place business with an insurer unless there is in force a written contract23
between the parties which sets forth the responsibilities of each party and, when both24
parties share responsibility for a particular function, specifies the division of such25
responsibilities, and which contains the following minimum provisions:26
A. (1) The insurer may terminate the contract for cause upon written notice27
to the MGA. The insurer may suspend the underwriting authority of the MGA28 HLS 11RS-110 ORIGINAL
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during the pendency of while any dispute regarding the cause for termination. is1
pending.2
B. (2) The MGA shall render accounts to the insurer detailing all transactions3
and remit all funds due under the contract to the insurer on not less than a monthly4
basis.5
C. (3) All funds collected for the account of an insurer shall be held by the6
MGA in a fiduciary capacity in a bank which is a member of the Federal Deposit7
Insurance Corporation (FDIC). This account shall be used for all payments on behalf8
of the insurer. The MGA may retain no more than three months' estimated claims9
payments and allocated loss adjustment expenses.10
D. (4) Separate records of business written by the MGA shall be maintained.11
The insurer shall have access and right to copy all accounts and records related to its12
business in a form usable by the insurer, and the commissioner shall have access to13
all books, bank accounts, and records of the MGA in a form usable to the14
commissioner. Such records shall be retained pursuant to rules and regulations15
promulgated by the commissioner.16
E. The contract may not be assigned in whole or part by the MGA.17
F. (5) Appropriate underwriting guidelines including:18
(1) (a) The maximum annual premium volume.19
(2) (b) The basis of the rates to be charged.20
(3) (c) The types of risks which may be written.21
(4) (d) Maximum limits of liability.22
(5) (e) Applicable exclusions.23
(6) (f) Territorial limitations.24
(7) (g) Policy cancellation provisions.25
(8) (h)The maximum policy period.26
G. (7) The insurer shall have the right to cancel or nonrenew any policy of27
insurance pursuant to the laws and regulations applicable thereto.28 HLS 11RS-110 ORIGINAL
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H. (8) If the contract permits the MGA to settle claims on behalf of the1
insurer:2
(1) (a) All claims shall be reported to the company insurer in a timely3
manner.4
(2) (b) A copy of the claim file shall be sent to the insurer at its request or5
as soon as it becomes known that the claim:6
(a) (i) Has the potential to exceed an amount determined by the commissioner7
or exceeds the limit set by the company, whichever is less;8
(b) (ii) Involves a coverage dispute;9
(c) (iii) May exceed the MGA's claims settlement authority;10
(d) (iv) Is open for more than six months; or11
(e) (v) Is closed by payment of an amount set by the commissioner or an12
amount set by the company, insurer, whichever is less.13
(3) (c) All claim files shall be the joint property of the insurer and MGA.14
However, upon an order of liquidation of the insurer, files shall become the sole15
property of the insurer or its estate. The MGA shall have reasonable access to and16
the right to copy the files on a timely basis.17
(4) (d) Any settlement authority granted to the MGA may be terminated for18
cause upon the insurer's written notice to the MGA or upon the termination of the19
contract. The insurer may suspend the settlement authority during the pendency of20
any dispute regarding the cause for termination.21
I. (9) When electronic claims files are in existence, the contract shall address22
the timely transmission of the data.23
J. (10) If the contract provides for a sharing of interim profits by the MGA,24
and the MGA has the authority to determine the amount of the interim profits by25
establishing loss reserves, controlling claim payments, or in any other manner,26
interim profits shall not be paid to the MGA until one year after they are earned for27
property insurance business and five years after they are earned for casualty business28
and not until the profits have been verified pursuant to R.S. 22:1625 of this Part.29 HLS 11RS-110 ORIGINAL
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K. B. The MGA shall not:1
(1) Bind reinsurance or retrocessions on behalf of the insurer, except that the2
MGA may bind facultative reinsurance contracts pursuant to obligatory facultative3
agreements if the contract with the insurer contains reinsurance underwriting4
guidelines including, for reinsurance both assumed and ceded, a list of reinsurers5
with which such automatic agreements are in effect, the coverages and amounts or6
percentages that may be reinsured and commission schedules.7
(2) Commit the insurer to participate in insurance or reinsurance syndicates.8
(3) Appoint any producer without assuring that the producer is lawfully9
licensed to transact the type of insurance for which he is appointed.10
(4) Without prior approval of the insurer, pay or commit the insurer to pay11
a claim over a specified amount, net of reinsurance, which shall not exceed one12
percent of the insurer's policyholder's surplus as of December thirty-first of the last13
completed calendar year.14
(5) Collect any payment from a reinsurer or commit the insurer to any claims15
settlement with a reinsurer, without prior approval of the insurer. If prior approval16
is given, a report shall be promptly forwarded to the insurer.17
(6) Permit its subproducer to serve on its board of directors.18
(7) Appoint a sub-MGA.19
(8) Jointly employ an individual who is employed with the insurer.20
§1625. Duties of insurers21
A. If an insurer has an MGA who writes more than five percent of its22
policyholder surplus, then the insurer shall provide financial data by an independent23
examiner concerning that company's insurer's book of business which is in question24
and is handled by that MGA upon request, and the insurer shall have on file an25
independent financial examination, in a form acceptable to the commissioner, of26
each MGA with which it has done business.27
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H. All such appointments shall remain in full force and effect until April1
thirtieth of the following year unless:2
(1) The producer license of the MGA is revoked or suspended by the3
commissioner as provided for in this Part or as prescribed in R.S. 22:1554.4
(2) The insurer has cancelled the appointment upon written notice to the5
agent producer and to the commissioner.6
* * *7
§1627. Penalties; suspension, revocation, fines, and liabilities8
A. If the commissioner finds after a hearing conducted in accordance with9
the Administrative Procedure Act, R.S. 49:950 et seq., that any person has violated10
any provision of this Part, the commissioner may order:11
* * *12
(2) Revocation or suspension of the producer's producer license. of the13
MGA.14
* * *15
PART III. THIRD PARTY THIRD-PARTY ADMINISTRATORS16
§1641. Definitions17
The following terms shall have the following meanings: As used in this Part,18
unless the context requires otherwise, the following definitions shall be applicable:19
(1) "Administrator" or "third-party administrator" or "TPA" means any20
individual, partnership, corporation, or other person, except an employee of a fund21
or plan that serves as an administrator, who directly or indirectly solicits or effects22
coverage of, underwrites, collects charges or premiums from, or adjusts or settles23
claims on residents of this state, or residents of another state from offices in this24
state, in connection with life or health insurance coverage or annuities, or plans of25
self-insurance providing accident and health protection or self-insurance of workers'26
compensation coverage, or any individual, partnership, corporation, or other person27
who contracts directly or indirectly with a group self-insurance fund licensed28
pursuant to the provisions of R.S. 23:1195 et seq. to provide claims adjusting,29 HLS 11RS-110 ORIGINAL
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underwriting, safety engineering, loss control, marketing, investment advisory, or1
administrative services to the fund or its membership, other than bookkeeping,2
auditing, or claims investigation services, except any of the following:3
* * *4
(c) An agent or broker insurance producer licensed to sell life or health5
insurance in this state, whose activities are limited exclusively to the sale of6
insurance.7
* * *8
(g) A credit union or a financial institution which is subject to supervision9
or examination by federal or state banking authorities, or a mortgage lender, to the10
extent they collect and remit premiums to licensed insurance agents producers or11
authorized insurers in connection with loan payments.12
* * *13
(j) A person who acts solely as an administrator of one or more bona fide14
employee benefit plans established by an employer or an employee organization, or15
both, for which the insurance laws of this state are preempted pursuant to the16
Employee Retirement Income Security Act of 1974 . (29 U.S.C. 1001 et seq.).17
* * *18
(4) "Control" as means as defined in R.S. 22:692.19
* * *20
(7) "Person" shall have the same meaning as set forth in R.S. 22:1542.21
(8) "Pharmacy benefit manager" means a person, business, or other entity and22
any wholly or partially owned or controlled subsidiary of such entity that administers23
the prescription drug or device portion of one or more health benefit plans on behalf24
of a third party, including plan sponsors, insurance companies, unions, and health25
maintenance organizations, in accordance with a pharmacy benefit management26
plan.27
(7) (9) "Underwrites" or "underwriting" means but is not limited to the28
acceptance of employer or individual applications for coverage of individuals in29 HLS 11RS-110 ORIGINAL
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accordance with the written rules of the insurer, the overall planning and1
coordinating of an insurance program, and the ability to procure bonds and excess2
insurance.3
§1642. Necessity of written agreement4
A. No administrator shall act as such without a written agreement between5
the administrator and the insurer and such written agreement shall be retained as part6
of the official records of both the insurer and the administrator for the duration of the7
agreement and for five years thereafter. The agreement shall contain all provisions8
required by this statute, except insofar as unless those requirements do not apply to9
the functions performed by the administrator.10
* * *11
C. The insurer or administrator may, with written notice, terminate the written12
agreement for cause as provided in the agreement. The insurer may suspend the13
underwriting authority of the administrator during the pendency of while any dispute14
regarding the cause for termination of the written agreement. is pending. The insurer15
must fulfill any lawful obligations with respect to policies affected by the written16
agreement, regardless of any dispute between the insurer and the administrator.17
* * *18
§1644. Maintenance of information19
* * *20
D. In the event the insurer and the administrator cancel their agreement,21
notwithstanding the provisions herein, in this Part, the administrator may transfer all22
records to the insurer or a succeeding administrator selected by the insurer and23
licensed in the state, rather than retain them for five years. In the event of a24
cancellation under this Subsection, the succeeding administrator or the insurer shall25
acknowledge and agree, in writing, that the administrator or insurer shall be26
responsible for retaining the records of the prior administrator as required herein. in27
this Part.28
* * *29 HLS 11RS-110 ORIGINAL
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§1651. Licensure required1
* * *2
B. Applicants under this Section shall pay a licensing fee in an amount set3
forth in R.S. 22:821 and shall make an application to the commissioner upon a form4
to be furnished by the commissioner. The application shall include or be5
accompanied by the following information and documents:6
* * *7
(6) If the applicant will be managing the solicitation of new or renewal8
business, proof that it employs or has contracted with an agent insurance producer9
licensed by this state for solicitation and taking of applications. Any applicant who10
intends to directly solicit insurance contracts or to otherwise act as an insurance agent11
producer must shall provide proof that he has a license as an insurance agent producer12
in this state.13
* * *14
D. The commissioner may refuse to issue a license if the commissioner15
determines that the administrator, or any individual responsible for the conduct of16
affairs of the administrator as defined herein, in this Part, is not competent,17
trustworthy, financially responsible or of good personal and business reputation, or18
has had an insurance or an administrator license denied or revoked for cause by any19
state.20
* * *21
H. A licensed administrator shall notify the commissioner of any material22
change in fact or circumstance affecting its qualification for a license in this state23
within sixty days of the effective date of the change. The notice shall include any24
documentation as the commissioner may require. Changes in fact or circumstances25
shall include:26
(1) Changes in control. as defined in R.S. 22:692(3).27
* * *28 HLS 11RS-110 ORIGINAL
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I.(1) A licensed administrator shall maintain and keep in full force and effect1
a surety bond in an amount of one hundred thousand dollars issued by an authorized2
surety company doing business in this state, or deposit with the commissioner a3
safekeeping or trust receipt from a bank doing business in the state or from a savings4
and loan association chartered to do business in this state indicating that the5
administrator has deposited one hundred thousand dollars in money, or bonds of the6
United States, the state of Louisiana, or any political subdivision thereof of the par7
value of one hundred thousand dollars. The surety bond or the money or the8
securities shall be held in trust for the benefit and protection of and as security for all9
policyholders of the insurer and participants of the plan with whom the administrator10
contracts. The provisions of this Paragraph shall not apply to administrators required11
to post a surety bond in accordance with provisions of R.S. 23:1196(C)(1), in12
providing services for a group self-insurance fund for workers' compensation13
insurance.14
* * *15
§1652. Waiver of application for certification16
Upon request from an administrator, the commissioner may waive the17
application requirements herein in this Part if the administrator has a valid license as18
an administrator issued in a state which has standards for administrators that are at19
least as stringent as those contained in the model statute for third-party administrators20
of the National Association of Insurance Commissioners.21
* * *22
§1654. Grounds for suspension or revocation of license23
A. The license of an administrator shall be suspended or revoked, or in lieu24
of said revocation, a fine may be imposed for each separate violation, not to exceed25
five thousand dollars per violation, or twenty-five thousand dollars in the aggregate,26
if the commissioner finds that the administrator: The commissioner shall suspend or27
revoke, or in lieu of revocation, impose a fine for each separate violation not to28 HLS 11RS-110 ORIGINAL
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exceed five thousand dollars per violation or twenty-five thousand dollars in the1
aggregate if he shall fine that the administrator:2
* * *3
C. The commissioner may, in his or her discretion and without advance notice4
or hearing thereon, immediately suspend the certificate of any administrator if the5
commissioner finds that either of the following circumstances exist:6
* * *7
§1657. Pharmacy benefit managers8
A. "Pharmacy benefit manager" means a person, business, or other entity and9
any wholly or partially owned or controlled subsidiary of such entity that administers10
the prescription drug or device portion of one or more health benefit plans on behalf11
of a third party, including plan sponsors, insurance companies, unions, and health12
maintenance organizations, in accordance with a pharmacy benefit management plan.13
B. A pharmacy benefit manager shall be deemed to be a third-party14
administrator for purposes of this Part. As such, all provisions of this Part shall apply15
to pharmacy benefit managers; however, notwithstanding the provisions of R.S.16
22:1651(F), every pharmacy benefit manager shall be required to be licensed by the17
commissioner of insurance. except if exempted pursuant to R.S. 22:1651(G).18
* * *19
§1662. General exemptions20
This Part does not apply to:21
* * *22
(6)(a) An individual who collects claim information from, or furnishes claim23
information to, insured insureds or claimants, who conducts data entry including24
entering data into an automated claims adjudication system provided if such25
individual is an employee of a business entity licensed pursuant to this Chapter, or an26
employee of an affiliate of a business entity licensed pursuant to the Chapter, if there27
are no more than twenty-five individuals under the supervision of one licensed28
individual adjuster or licensed individual insurance producer. As used in this Part,29 HLS 11RS-110 ORIGINAL
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"automated claims adjudication system" means a preprogrammed computer system1
designed for the collection, data entry, calculation and system generated final2
resolution of consumer electronic products insurance claims which:3
* * *4
(14) A person handling commercial claims for excess coverages as classified5
by R.S. 22:47(14).6
* * *7
§1664. Application for claims adjuster license8
A. Beginning June 30, 2007, any Any person who is either employed or9
contracts to perform services in Louisiana as an adjuster shall obtain a license to do10
so from the Department of Insurance. A person applying for a claims adjuster license11
shall make application to the commissioner of insurance on the appropriate uniform12
application or other application prescribed required by the commissioner of13
insurance.14
* * *15
C.16
* * *17
(2) All business entities applying to do business as independent adjusting18
companies must shall provide a listing of all executive officers and directors of the19
applicant and of all executive officers and directors of entities owning and any20
individuals owning, directly or indirectly, ten percent or more of the outstanding21
voting securities of the applicant. In order to make a determination of eligibility, the22
commissioner may require any person listed above in this Paragraph to submit23
addresses, social security numbers, criminal and administrative history, fingerprints,24
background checks, and biographical statements.25
* * *26
§1665. Resident license27
A. Before issuing a claims adjuster license to an applicant under pursuant to28
this Section, the commissioner of insurance shall find that the applicant:29 HLS 11RS-110 ORIGINAL
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(1) Is eligible to designate this state as his or her home state or is a1
nonresident who is not eligible for a license under pursuant to R.S. 22:1670.2
* * *3
§1669. Exemptions from examination4
A. An individual who applies for a claims adjuster license in this state who5
was previously licensed as a claims adjuster in another state based on a claims6
adjuster examination shall not be required to complete any prelicensing or an7
examination. This exemption is only available if the person is currently licensed in8
that state or if the application is received within twelve months of the cancellation of9
the applicant's previous claims adjuster license and if the prior state issues a10
certification that, at the time of cancellation, the applicant was in good standing in11
that state or the state's producer database records or records maintained by the12
National Association of Insurance Commissioners (NAIC), its affiliates, or13
subsidiaries, indicate that the adjuster is or was licensed in good standing.14
B. An individual licensed as a claims adjuster in another state based on a15
claims adjuster examination who moves to this state shall make application within16
ninety days of establishing legal residence to become a resident claims adjuster17
licensee pursuant to R.S. 22:1665. No prelicensing or examination shall be required18
of that person to obtain a claims adjuster license.19
C. Repealed by Acts 2010, No. 1007, §2.20
D. C. An individual who applies for a claims adjuster license in this state who21
was previously licensed as a claims adjuster in this state shall not be required to22
complete any prelicensing or an examination. This exemption is only available if the23
application is received within twelve months of the cancellation of the applicant's24
previous claims adjuster license in this state and if, at the time of cancellation, the25
applicant was in good standing in this state, and had passed the examination required26
by R.S. 22:1668.27 HLS 11RS-110 ORIGINAL
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§1670. Nonresident claims adjuster license reciprocity1
A. Unless denied licensure pursuant to R.S. 22:1672, a nonresident person2
may receive a nonresident claims adjuster license upon complying with the following3
requirements:4
* * *5
(2) The person has submitted the proper request for licensure along with the6
fees required by R.S.22:821.7
* * *8
D. As a condition to continuation of a nonresident claims adjuster license9
issued under pursuant to this Section, the nonresident claims adjuster licensee shall10
maintain a resident adjuster license in their home state. The nonresident claims11
adjuster license issued under pursuant to this Section shall terminate and be12
surrendered immediately to the commissioner of insurance if the home state claims13
adjuster license terminates for any reason, unless the claims adjuster has been issued14
a license as a resident claims adjuster in their new home state. Notification to the15
state or states where a nonresident license is issued must shall be made as soon as16
possible, yet no later than thirty days of change in the new state resident license.17
Licensee The licensee shall include the new and old his current and prior address. A18
new state resident license is required for nonresident licenses to remain valid. The19
new state resident license must have reciprocity with this state for the nonresident20
license not to terminate. The new home state shall comply with the provisions of21
Paragraph (A)(4) of this Section.22
§1671. License23
A. Unless denied licensure under pursuant to this Part, persons who have met24
the requirements of this Part shall be issued a claims adjuster license. The license25
shall contain the licensee's name, business address, personal identification license26
number, date of issuance, expiration date, and any other information the27
commissioner of insurance deems necessary.28 HLS 11RS-110 ORIGINAL
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B.1
* * *2
(2) Every licensed claims adjuster shall file an application for renewal of his3
license every two years, by notifying the commissioner of insurance using methods4
prescribed required by the commissioner of insurance, of the licensee's intention to5
continue his license.6
C. The licensee shall inform the commissioner of insurance by any means7
acceptable to the commissioner of insurance of a change of address, change of legal8
name, or change of information submitted on the application within thirty days of the9
change. Failure to file a change within the required time shall subject the licensee to10
a fifty dollar fine per violation. or other fine as may be authorized by R.S. 22:821.11
Any person against whom a penalty has been levied shall be given due notice of such12
action. Upon receipt of this notice, the licensee may apply for and shall be entitled13
to a hearing in accordance and compliance with Chapter 12 of this Title, R.S. 22:219114
et seq.15
* * *16
§1673. Continuing education17
* * *18
C. Only continuing education courses approved by the commissioner of19
insurance shall be used to satisfy the continuing education requirement of Subsection20
A. of this Section.21
* * *22
§1693. License required23
A. Beginning June 30, 2007, a A person shall not act or hold himself out as24
a public adjuster in this state unless the person is licensed as a public adjuster in25
accordance with this Part.26
* * *27 HLS 11RS-110 ORIGINAL
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§1694. Application for license1
A. A person applying for a public adjuster license shall make application to2
the commissioner of insurance on the appropriate uniform application or other3
application prescribed required by the commissioner of insurance.4
* * *5
§1696. Examination6
A. An individual applying for a public adjuster license under pursuant to this7
Part shall pass a written examination unless exempt pursuant to R.S. 22:1697, 1698,8
and or 1699. The examination shall test the knowledge of the individual concerning9
the duties and responsibilities of a public adjuster and the insurance laws and10
regulations of this state. Examinations required by this Section shall be developed11
and conducted under pursuant to rules and regulations prescribed by the12
commissioner of insurance.13
* * *14
§1697. Exemptions from examination15
A. An individual who applies for a public adjuster license in this state who16
was previously licensed as a public adjuster in another state based on a public adjuster17
examination shall not be required to complete any prelicensing or examination. This18
exemption is only available if the person is currently licensed in that state or if the19
application is received within twelve months of the cancellation of the applicant's20
previous license and if the prior state issues a certification that, at the time of21
cancellation, the applicant was in good standing in that state or the state's producer22
database records or records maintained by the NAIC, its affiliates, or subsidiaries,23
indicate that the public adjuster is or was licensed in good standing.24
B. An individual licensed as a public adjuster in another state based on a25
public adjuster examination who moves to this state shall make application within26
ninety days of establishing legal residence to become a resident licensee pursuant to27
R.S. 22:1695. No prelicensing or examination shall be required of that person to28
obtain a public adjuster license.29 HLS 11RS-110 ORIGINAL
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C. An individual who applies for a public adjuster license in this state who1
was previously licensed as a public adjuster in this state shall not be required to2
complete any prelicensing or examination. This exemption is only available if the3
application is received within twelve months of the cancellation of the applicant's4
previous license in this state and if, at the time of cancellation, the applicant was in5
good standing in this state.6
§1698. Nonresident license reciprocity7
A. Unless denied licensure pursuant to R.S. 22:1700, a nonresident person8
may receive a nonresident public adjuster license if:9
* * *10
(2) The person has submitted the proper request for licensure, has paid the11
fees required by R.S. 22:821, and has provided proof of financial responsibility as12
required in R.S. 22:1701.13
* * *14
D. As a condition to continuation of a public adjuster license issued under15
pursuant to this Section, the licensee shall maintain a resident public adjuster license16
in his home state. The nonresident public adjuster license issued under pursuant to17
this Section shall terminate and be surrendered immediately to the commissioner of18
insurance if the home state public adjuster license terminates for any reason, unless19
the public adjuster has been issued a license as a resident public adjuster in his new20
home state. Notification to the state or states where the nonresident license is issued21
must shall be made as soon as possible, yet no later than thirty days of change in the22
new state resident license. Licensee The licensee shall include his new current and23
old prior address. The new state resident license is required for the nonresident24
license to remain valid. The new state resident license must have reciprocity with this25
state for the nonresident license not to terminate. The new home state shall comply26
with the provisions of Paragraph (A)(4) of this Section.27 HLS 11RS-110 ORIGINAL
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§1699. License1
A.2
* * *3
(3) Every licensed public adjuster shall file an application for renewal of his4
license every two years by notifying the commissioner of insurance, by methods5
prescribed required by the commissioner of insurance, of the licensee's intention to6
continue his license.7
B. The licensee shall inform the commissioner of insurance by any means8
acceptable to the commissioner of insurance of a change of address, change of legal9
name, or change of information submitted on the application within thirty days of the10
change. Failure to file a change within the required time shall result in the imposition11
of a fifty dollar penalty per violation,. or as may be authorized by R.S. 22:821. Any12
person against whom a penalty has been levied shall be given due notice of such13
action. Upon receipt of this notice, the licensee may apply for and shall be entitled14
to a hearing in accordance and compliance with Chapter 12 of this Title, R.S. 22:219115
et seq.16
* * *17
F. The license shall contain the licensee's name, city, and state of business18
address, personal identification license number, the date of issuance, the expiration19
date, and any other information the commissioner of insurance deems necessary.20
* * *21
§1704. Contract between public adjuster and insured22
* * *23
E. Prior to the signing of the contract, the public adjuster shall provide the24
insured with a separate disclosure document regarding the claim process that states:25
(1) Property insurance policies obligate the insured to present a claim to his26
insurance company for consideration. There are three types of adjusters that could27
be involved in that process. The definitions of the three types are as follows:28 HLS 11RS-110 ORIGINAL
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(a) "Company adjusters" means the insurance adjusters who are employees1
of an insurance company. They represent the interest of the insurance company and2
are paid by the insurance company. The company adjuster Company adjusters shall3
not charge the insured insureds a fee.4
(b) "Independent adjusters" means the insurance adjusters who are hired on5
a contract basis by an insurance company to represent the insurance company's6
interest. They are paid by your insurance company. The independent adjuster7
Independent adjusters shall not charge the insured insureds a fee.8
* * *9
§1706. Standards of conduct of public adjuster10
* * *11
F. A public adjuster shall not solicit employment for or otherwise solicit12
engagement, directly or indirectly, for or on behalf of any attorney at law, contractor,13
or subcontractor, in connection with any loss or damage with respect to which such14
adjuster is concerned or employed. Nothing herein in this Part shall be interpreted to15
prevent a public adjuster from recommending a particular attorney, contractor or16
subcontractor; however, the public adjuster is prohibited from collecting any fee,17
compensation, or thing of value for such referral.18
* * *19
§1722. Definitions 20
As used in this Part: 21
(1) "Actuary" shall mean a person who is a member in good standing of the22
American Academy of Actuaries.23
(2) "Business entity" shall mean a corporation, association, partnership,24
limited liability company, limited liability partnership, or other legal entity.25
(2) (3) "Controlling person" shall mean any person , firm, association, or26
corporation who directly or indirectly has the power to direct or cause to be directed,27
the management, control, or activities of the reinsurance intermediary.28
(4) "Individual" shall mean a natural person.29 HLS 11RS-110 ORIGINAL
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(3) (5) "Insurer" shall mean any person, firm, association, or corporation duly1
licensed in this state, pursuant to the applicable provisions of the Louisiana Insurance2
this Code, as an insurer. authorized insurer as defined in R.S. 22:46.3
(4) (6) "Licensed producer" shall mean an agent, broker, or a person licensed4
as an insurance producer pursuant to the provisions of Subpart A of Part I of this5
Chapter, R.S. 22:1541 et seq., or a person licensed as a reinsurance intermediary-6
broker licensed pursuant to the applicable provisions of the Louisiana Insurance Code.7
this Part.8
(7) "Person" shall mean an individual or business entity.9
(5) (8) "Reinsurance intermediary" shall mean a reinsurance intermediary-10
broker or a reinsurance intermediary-manager . as these terms are defined in11
Paragraphs (6) and (7) of this Section.12
(6) (9) "Reinsurance intermediary-broker" shall mean any person, other than13
an officer or employee of the ceding insurer, who solicits, negotiates, or places14
reinsurance cessions or retrocessions on behalf of a ceding insurer without the15
authority or power to bind reinsurance on behalf of such insurer.16
(7) (10) "Reinsurance intermediary-manager" shall mean any person , firm,17
association, or corporation who has authority to bind or manages all or part of the18
assumed reinsurance business of a reinsurer, including the management of a separate19
division, department or underwriting office, and acts as an agent for such reinsurer,20
whether known as a reinsurance intermediary-manager, manager, or other similar21
term. Notwithstanding the above, any previous provision of this Section, the22
following persons shall not be considered a reinsurance intermediary-manager, with23
respect to such reinsurer, for the purposes of this Part: 24
(a) An employee of the reinsurer.25
(b) A United States manager of the United States branch of an alien reinsurer.26
(c) An underwriting manager which, pursuant to contract, manages all the27
reinsurance operations of the reinsurer, is under common control with the reinsurer,28 HLS 11RS-110 ORIGINAL
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subject to the Insurance Holding Company System Regulatory Law, R.S. 22:691 et1
seq., and whose compensation is not based on the volume of premiums written.2
(d) The manager of a group, association, pool, or organization of insurers3
which engage in joint underwriting or joint reinsurance and who are subject to4
examination by the state in which the manager's principal business office is located.5
(8) (11) "Reinsurer" shall mean any person, firm, association, or corporation6
duly licensed in this state, pursuant to the applicable provisions of the Louisiana7
Insurance this Code, as an insurer with the authority to assume reinsurance.8
(9) (12) "Qualified United States financial institutions" institution" shall, for9
purposes of this Part, mean an institution that: 10
(a) Is organized or licensed under the laws of the United States or any state11
thereof.12
(b) Is regulated, supervised, and examined by federal or state authorities13
having regulatory authority over banks and trust companies.14
(c) Has been determined by either the commissioner of insurance or the15
Securities Valuation Office of the National Association of Insurance Commissioners16
to meet such standards of financial condition and standing as are considered necessary17
and appropriate to regulate the quality of financial institutions whose letters of credit18
will be acceptable to the commissioner.19
(10) (13) "To be in violation" shall mean that the reinsurance intermediary,20
insurer, or reinsurer for whom the reinsurance intermediary was acting failed to21
substantially comply with the provisions of this Part.22
§1723. Licensure 23
A. No person, firm, association, or corporation shall act as a reinsurance24
intermediary-broker in this state if the reinsurance intermediary-broker maintains an25
office either directly or as a member , officer, director, or employee of a firm or26
association, or as an officer, director, or employee of a corporation: business entity:27
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B. No person, firm, association, or corporation shall act as a reinsurance1
intermediary-manager: 2
* * *3
(2) In this state, if the reinsurance intermediary-manager maintains an office4
either directly or as a member, officer, director, or employee of a firm or association,5
or as an officer, director, or employee of a corporation business entity in this state,6
unless such reinsurance intermediary-manager is a licensed producer in this state.7
* * *8
D.(1) The commissioner may issue a reinsurance intermediary license to any9
person, firm, association, or corporation who has complied with the requirements of10
this Part. Any such license issued to a firm or association business entity will11
authorize all the members, officers, and designated employers and directors of the12
firm or association and any designated employees business entity to act as reinsurance13
intermediaries under the license, and all such persons shall be named in the14
application and any supplements thereto. Any license issued to a corporation shall15
authorize all of the officers, and any designated employees and directors thereof to16
act as reinsurance intermediaries on behalf of such corporation, and all such persons17
shall be named in the application and any supplements thereto.18
(2) If the applicant for a reinsurance intermediary license is a nonresident, the19
applicant, as a condition precedent to receiving or holding a license, shall designate20
the commissioner as agent for service of process in the manner, and with the same21
legal effect, provided for by this Part for designation of service of process upon22
unauthorized insurers, and shall furnish the commissioner with the name and address23
of a resident of this state upon whom notices or orders of the commissioner or process24
affecting such nonresident reinsurance intermediary may be served. The licensee25
shall promptly notify the commissioner, in writing, of every change in its designated26
agent for service of process, and such change shall not become effective until27
acknowledged by the commissioner.28
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F. Licensed attorneys at law of this state, when acting in their professional1
capacity as such, shall be exempt from this Section. Part.2
§1724. Required contract provisions for reinsurance intermediary-brokers3
Any transactions between a reinsurance intermediary-bro ker and the insurer4
the broker represents in such capacity shall only be entered into pursuant to a written5
authorization, specifying the responsibilities of each party. The authorization shall,6
at a minimum, provide that: 7
* * *8
(5) The reinsurance intermediary-broker will shall comply with the written9
standards established by the insurer for the cession or retrocession of all risks.10
* * *11
§1726. Duties of insurers utilizing the services of a reinsurance intermediary-broker12
A. An insurer shall not engage the services of any person , firm, association,13
or corporation to act as a reinsurance intermediary-broker on its behalf, unless such14
person is licensed as required by R.S. 22:1723(A).15
B. An insurer may not employ an individual who is employed by a16
reinsurance intermediary-broker with which it transacts business, unless such17
reinsurance intermediary-broker is under common control with the insurer and subject18
to the Insurance Holding Company System Regulatory Law ., R.S. 22:691 et seq.19
* * *20
§1727. Required contract provisions for reinsurance intermediary-managers 21
A. Any transactions between a reinsurance intermediary-manager and the22
reinsurer represented in its capacity shall only be entered into pursuant to a written23
contract, specifying the responsibilities of each party, which shall be approved by the24
board of directors of the reinsurer. At least thirty days before the reinsurer assumes25
or cedes business through the producer, a true copy of the approved contract shall be26
filed with the commissioner for approval. The contract shall, at a minimum, provide27
that: 28 HLS 11RS-110 ORIGINAL
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(1) The reinsurer may terminate the contract for cause upon written notice to1
the reinsurance intermediary-manager. The reinsurer may immediately suspend the2
authority of the reinsurance intermediary-manager to assume or cede business during3
the pendency of while any dispute regarding the cause for termination. is pending.4
(2) The reinsurance intermediary-manager will shall render accounts to the5
reinsurer accurately detailing all material transactions, including information6
necessary to support all commissions, charges, and other fees received by, or owing7
to the reinsurance intermediary-manager, and remit all funds due under the contract8
to the reinsurer at least monthly.9
(3) All funds collected for the account of the reinsurer will shall be held by10
the reinsurance intermediary-manager in a fiduciary capacity in a bank which is a11
qualified United States financial institution as defined herein. The reinsurance12
intermediary-manager may retain no more than three months estimated claims13
payments and allocated loss adjustment expenses. The reinsurance intermediary-14
manager shall maintain a separate bank account for each reinsurer that it represents.15
(4) For at least ten years after expiration of each contract of reinsurance16
transacted by the reinsurance intermediary-manager, the reinsurance intermediary-17
manager will shall keep a complete record for each transaction showing: 18
* * *19
(7) The reinsurance intermediary-manager will shall comply with the written20
underwriting and rating standards established by the insurer for the acceptance,21
rejection, or cession of all risks.22
(8) Sets The contract sets forth the rates, terms, and purposes of commissions,23
charges, and other fees which the reinsurance intermediary-manager may levy against24
the reinsurer.25
B. If the contract permits the reinsurance intermediary-manager to settle26
claims on behalf of the reinsurer: 27
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(4) Any settlement authority granted to the reinsurance intermediary-manager1
may be terminated for cause upon the written notice by the reinsurer to the2
reinsurance intermediary-manager or upon the termination of the contract. The3
reinsurer may suspend such settlement authority during the pendency of the while any4
dispute regarding the cause of termination. is pending.5
C. If the contract provides for a sharing of interim profits by the reinsurance6
intermediary-manager, that such interim profits will shall not be paid until one year7
after the end of each underwriting period for property business and five years after the8
end of each underwriting period for casualty business, or for such longer period as9
may be specified by the commissioner, and not until the adequacy of reserves on10
remaining claims has been verified pursuant to R.S. 22:1729(C).11
* * *12
F. The reinsurance intermediary-manager will shall disclose to the reinsurer13
any relationship it has with any insurer prior to ceding or assuming any business with14
the insurer pursuant to the contract.15
* * *16
§1728. Prohibited acts 17
The reinsurance intermediary-manager shall not: 18
* * *19
(6) Jointly employ an individual who is employed by the reinsurer, unless20
such reinsurance intermediary-manager is under common control with the reinsurer21
subject to the Insurance Holding Company System Regulatory Law ., R.S. 22:691 et22
seq.23
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§1729. Duties of reinsurers utilizing the services of a reinsurance intermediary-1
manager 2
A. A reinsurer shall not engage the services of any person , firm, association,3
or corporation to act as a reinsurance intermediary-manager on its behalf unless such4
person is licensed as required by R.S. 22:1723(B).5
* * *6
F. A reinsurer shall not appoint to its board of directors any officer, director,7
employee, controlling shareholder, or subproducer of its reinsurance intermediary-8
manager. This Subsection shall not apply to relationships governed by the Insurance9
Holding Company System Regulatory Law, R.S. 22:691 et seq. or, if applicable, the10
Business Transacted with Broker Producer Controlled Insurer Law., R.S. 22:551 et11
seq. 12
* * *13
§1731. Penalties and liabilities14
A. Any reinsurance intermediary, insurer, or reinsurer found by the15
commissioner, after a public hearing, to be in violation of any provision of this Part,16
shall:17
* * *18
(2) Be subject to revocation or suspension of its license. or certificate of19
authority.20
* * *21
§1741. Purpose22
The purpose of this Part is to provide for professional employment services23
by defining such services, requiring registration of persons or entities providing such24
services, providing for employee benefits plans and workers' compensation coverage25
for participants of such services, and providing for enforcement of this Part.26
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§1747. Licensure1
Every PEO engaged in the business of soliciting, selling, or negotiating2
policies of insurance shall be properly licensed in accordance with this Title. The3
PEO shall not hold itself out as an insurer, or insurance broker, or insurance agent;4
producer; offer any insurance service; or conduct any business that is defined or5
regulated in this Title unless appropriately licensed. No representative of a PEO shall6
make any comparative analysis or render advice regarding any insurance policy or7
coverage, including any health benefit plan or workers' compensation insurance,8
during the solicitation or sale of a professional employer services agreement or9
otherwise, unless properly licensed as an insurance agent or insurance broker10
producer in accordance with this Title.11
* * *12
§1761. Purpose13
This Part is to govern the qualifications and procedures for the limited14
licensing of motor vehicle rental or leasing companies to sell or offer insurance in15
conjunction with the rental of a vehicle as provided in this Part. This Part shall16
govern the transactions covered in this Part of selling travel or automobile-related17
products or coverage in connection with and incidental to the rental of vehicles.18
* * *19
§1763. Limited licensing; fees20
* * *21
B. As a prerequisite for issuance of a limited license under pursuant to this22
Part, there shall be filed with the commissioner a written application for a limited23
license, along with a five hundred dollar-application fee, signed by an officer of the24
applicant, in such form or forms, and supplements thereto, and containing such25
information, as the commissioner may prescribe by rule or regulation. The application26
shall be accompanied by such fee as provided by R.S. 22:821. Every limited licensee27
shall, every two years, notify the commissioner of his intention to continue its license28
on forms provided by the commissioner and shall submit a renewal fee of two29 HLS 11RS-110 ORIGINAL
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hundred fifty dollars. However, for a licensee who maintains twenty-five or less1
vehicles, the initial application fee shall be one hundred dollars and the renewal fee2
shall be fifty dollars. as provided by R.S. 22:821.3
* * *4
§1766. Authorized employees5
* * *6
C. The limited licensee shall keep a list of all persons who are authorized or7
who are selling insurance as provided in this Part. The list shall be provided to the8
commissioner within two weeks of written demand from the commissioner.9
§1767. Insurance charges10
Notwithstanding any other provision of this Part or any rule adopted by the11
commissioner, a limited licensee pursuant to this Part shall not be required to treat12
monies collected from renters purchasing such insurance when renting vehicles as13
funds received in a fiduciary capacity, provided that if the charges for coverage shall14
be itemized and be ancillary to a rental transaction. The sale of insurance not in15
conjunction with a rental transaction is prohibited by the provisions of this Part.16
§1768. Representations17
No limited licensee under pursuant to this Part shall advertise, represent, or18
otherwise hold itself or any of its employees or agents out as licensed insurers, or19
insurance agents, or insurance brokers. producers.20
Section 2. R.S. 22:1546(G) and (H), 1566, 1746(E), 1751, and 1769 are hereby21
repealed in their entirety.22
Section 3. The Louisiana State Law Institute is hereby directed to redesignate R.S.23
22:937 as R.S. 22:917.24
Section 4. This Act shall become effective on January 1, 2012.25 HLS 11RS-110 ORIGINAL
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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)]
Aubert HB No. 283
Abstract: Provides for technical recodification of certain provisions of the La. Insurance
Code relative to life insurance and annuities.
Proposed law makes numerous technical changes to present law, specifically certain
provisions of the La. Insurance Code. Such changes include correction of citations, updates
of terms and language, reorganization of provisions, elimination of obsolete or ineffective
provisions, such as transition provisions and past effective dates, harmonizing of inconsistent
provisions, and consolidating all provisions authorizing fees into a single provision of law.
Proposed law further directs the LSLI to redesignate R.S. 22:937 as R.S. 22:917.
Effective Jan. 1, 2012.
(Amends R.S. 22:901(A), (B), (C)(1) and (3), and (D)(1)(intro. para.) and (a) and (2), 902,
904, 905, 906, 907, 910, 912(A), (B)(1), (C), (D)(1)(b), (E), and (F), 913, 914, 915(B), 931,
932(B)(intro. para.) and (1), (D)(intro. para.) and (2), and (E), 934, 935, 936(A)(1)(intro.
para.) and (2), (B), (D)(1), (2), and (4), (E), (F)(1), (G)(1), (4), and (8)(intro. para.) and (b)
and (d)-(g), (I)(1), (J)(1), (2), (3), and (5), (K)(1)(g) and (h), 941(B)(intro. para.) and (6),
942(intro. para.) and (1), (10)(b), and (11), 943(D)(2), 944(A), 951(A), 952(A)(2), (B)(intro.
para.) and (4), and (J), 961, 1541, 1542(1), (4), (6), (9), (11), (14), and (18), 1544(B)(5)-(8)
and (D), 1545(I)(1)(intro. para.), 1546(A)(3), (D)(4), and (F), 1547(A)(10), (C)(2), (D), (E),
(G), (H), and (I)(3), 1548(A)(1) and (3), (B)(2) and (3)(b), (D)(2), and (E), 1549(B)(4) and
(5), (C), (D), (E)(intro. para.), (F), and (H), 1550(A)(2), (B)(1) and (d) and (2), (C), (D),
(E)(intro. para.), and (H), 1554(G), 1555, 1556(A), (B), and (C), 1557(B)(1) and (2),
1558(B)(3) and (4), (C), and (D), 1559(C), (D)(1), and (E)(1), 1562(C)(1)(b) and (d), (E)(2),
and (H)(intro. para.) and (4), 1564(A)(2), (B)(1)(a), and (C), 1571, 1573(C) - (G), (I)(1)(a),
(K), (L), and (M), 1574(A)-(D)(1), 1575(C)(2) and (D), 1583, the heading of R.S. 22:1584,
1585(C), 1591, 1592, 1593(A)(intro. para.) and (1), 1594(intro. para.), 1595, 1597, 1598(C),
1599(A) and (C)(intro. para.), 1600(B)(intro. para.), 1603(1) and (3), 1604(A)(2), 1605, 1622,
1623(A), (B), (D), and (F), 1624, 1625(A) and (H), 1627(A)(2), the heading of Part III of
Chapter 5 of the Louisiana Revised Statutes of 1950, 1641(intro. para.), (1)(intro. para.), (c),
(g), and (j), (4), and (7), 1642(A) and (C), 1644(D), 1651(B)(6), (D), (H)(1), and (I)(1), 1652,
1654(A)(intro. para.) and (C)(intro. para.), 1657, 1662(6)(a)(intro. para.) and (14), 1664(A)
and (C)(2), 1665(A)(intro. para.) and (1), 1669, 1670(A)(2) and (D), 1671(A), (B)(2), and
(C), 1673(C), 1693(A), 1694(A), 1696(A), 1697, 1698(A)(2) and (D), 1699(A)(3), (B), and
(F), 1704(E)(1)(a) and (b), 1706(F), 1722, 1723(A)(intro. para.), (B)(intro. para.) and (2),
(D), and (F), 1724(5), 1726(A) and (B), 1727(A)(1), (2), (3), (4)(intro. para.), (7), and (8),
(B)(4), (C), and (F), 1728(6), 1729(A) and (F), 1731(A)(2), 1741, 1747, 1761, 1763(B), 1767,
and 1768; Adds R.S. 22:821(B)(31), (32), and (33), 1557(C), 1641(8) and (9), and 1766(C);
Repeals R.S. 22:1546(G) and (H), 1566, 1746(E), 1751, and 1769)