Louisiana House Bill HB746

Louisiana 2016 Regular Session

• Introduced: 3/4/16
• Refer: 3/4/16
• Refer: 3/14/16
• Refer: 3/30/16
• Refer: 3/31/16
• Report Pass: 4/20/16
• Engrossed: 4/28/16
• Refer: 5/2/16
• Report Pass: 5/4/16
• Enrolled: 5/23/16
• Chaptered: 6/2/16
• Passed: 6/2/16

Caption

Provides for licensing and regulation of insurance consultants by the commissioner of insurance (EN INCREASE SG RV See Note)

Impact

The bill significantly modifies existing statutes related to the licensing and regulation of insurance consultants in Louisiana. By establishing a formal licensing process and mandating continuing education for license holders, the proposal intends to enhance the professionalism of insurance consulting. It will help to ensure that those offering consulting services are knowledgeable about current regulations and industry practices, thereby reducing the likelihood of malpractices and enhancing consumer confidence in consulting services.

Summary

House Bill 746 provides for the licensing and regulation of insurance consultants by the Louisiana commissioner of insurance. The bill outlines the necessary qualifications, fees, and processes for obtaining and maintaining an insurance consultant's license, as well as requirements for continuing education. This legislation is aimed at increasing oversight in the insurance consulting industry, ensuring that consultants adhere to established standards that protect consumers and maintain industry integrity.

Sentiment

Overall, the sentiment surrounding HB 746 has been supportive among industry stakeholders who believe that regulated standards will help elevate the consulting profession. However, concerns have been raised about the potential burden of additional regulatory requirements on current consultants and the associated costs of licensing and continuing education. Some believe these requirements may create barriers to entry for new consultants, reducing competition in the market.

Contention

One notable point of contention within the discussions of the bill is the provision that requires insurance consultants to reject any commissions or fees from insurance producers while acting in their consultant capacity. Critics argue this could limit the operational ability of some consultants and create tension between consultants and producers. On the other hand, advocates assert that this provision is necessary to eliminate conflicts of interest and ensure that consultants act clearly in the best interests of their clients.