HLS 12RS-1021 ORIGINAL
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are additions.
Regular Session, 2012
HOUSE BILL NO. 869
BY REPRESENTATIVE PEARSON
INSURANCE/RATES: Provides relative to quoted amounts for insurance premiums and
negotiations for producer compensation
AN ACT1
To amend and reenact R.S. 22:1567(introductory paragraph) and to enact R.S. 22:855(A)(3)2
and 1567(B), relative to producer compensation; to authorize producers and3
non-commercial policyholders to negotiate any combination of commissions as fees4
for producer compensation; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 22:1567(introductory paragraph) is hereby amended and reenacted7
and R.S. 22:855(A)(3) and 1567(B) are hereby enacted to read as follows: 8
§855. Quoted premium shall include all charges; dollar amount required9
A. The premium quoted by the insurer shall be a specific dollar amount10
which shall be inclusive of all fees, charges, premiums, or other consideration11
charged for the insurance or for the procurement thereof, except that:12
* * *13
(3) It shall not be a violation of this Section for an insurance producer to14
negotiate with both or either a property and casualty insurer or policyholder in15
accordance with R.S. 22:1567(B) to compensate the insurance producer for16
placement of property and casualty coverages by any combination of commissions,17
fees, or fees in lieu of commissions.18
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HB NO. 869
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§1567. Producers' compensation in form of fees; commercial property and casualty1
insurance; criteria for policyholders2
A. Notwithstanding any other provision of law to the contrary, an insurance3
producer may negotiate with both or either a property and casualty insurer or a4
commercial policyholder, including a governmental entity pursuant to R.S.5
42:1123(37)(b), to compensate the insurance producer for the placement of6
commercial property and casualty insurance coverages by any combination of7
commissions, fees, or fees in lieu of commissions if the commercial insurance8
policyholder, including a governmental entity pursuant to R.S. 42:1123(37)(b), meets9
one of the following criteria:10
* * *11
B. Notwithstanding any provision of law to the contrary, an insurance12
producer may negotiate with either or both a property and casualty insurer or a13
policyholder to compensate the insurance producer for placement of commercial14
property and casualty insurance coverages by any combination of commissions, fees,15
or fees in lieu of commissions.16
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)]
Pearson HB No. 869
Abstract: Authorizes producers and certain policyholders to negotiate any combination of
commissions, fees, or fees in lieu of commissions for non-commercial property and
casualty insurance coverages.
Present law provides that premiums quoted by insurers shall be in a specific dollar amount
which is inclusive of all fees, charges, premiums, or other consideration charged for the
insurance, except for certain exceptions provided within present law. Further provides that
no insurer, producer, or other representative of an insurance company may receive any fee,
compensation, or consideration for insurance that is not included within the premium
delivered to the insured, except for certain exceptions provided within present law.
Proposed law retains present law, but provides an exception that allows insurance producers
and property and casualty insurers to negotiate any combination of commissions and fees,
or fees in lieu of commissions.
Present law provides that, notwithstanding any other provision of law in the Insurance Code
to the contrary, an insurance producer and a property and casualty insurer may negotiate any HLS 12RS-1021 ORIGINAL
HB NO. 869
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are additions.
combination of commissions and fees, or fees in lieu of commissions, to compensate the
insurance producer for the placement of commercial property and casualty insurance
coverages if the commercial insurance policyholder meets any one of the following criteria:
(1)Has total annual property and casualty insurance premiums in excess of $500,000.
(2)Obtains insurance coverage with a per occurrence or per claim deductible or self-
insured retention of $50,000 or more for workers' compensation, general liability,
or automobile insurance coverages.
(3)Has a net worth in excess of $25 million.
(4)Qualifies as a self-insurer with this state.
(5)Is a governmental entity that had a contract prior to August 9, 2010, with an
insurance producer on a stipulated fee basis for the placement of commercial
property and casualty insurance coverages.
Proposed law retains present law, and further extends the provision in present law that
allows insurance producers and property and casualty insurers or commercial policyholders
to negotiate any combination of commissions and fees, or fees in lieu of commissions to
non-commercial policyholders.
(Amends R.S. 22:1567(intro. para.); Adds R.S. 22:855(A)(3) and 1567(B))