2017 Regular Session ENROLLED
SENATE BILL NO. 117
BY SENATOR COLOMB
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
1 AN ACT
2 To amend and reenact R.S. 22:1570(B)(1)(introductory paragraph) and (i) and 1963, and to
3 enact R.S. 22:1570.1 relative to insurance producers; to require certain insurance
4 producers to maintain professional liability insurance for the benefit of insurance
5 customers; to provide for unfair trade practices; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 22:1570(B)(1)(introductory paragraph) and (i) and 1963 are hereby
8 amended and reenacted and R.S. 22:1570.1 is hereby enacted to read as follows:
9 §1570. Limitation on termination of independent insurance producers
10 * * *
11 B.(1) No admitted insurance company which is authorized to do business in
12 this state shall terminate the appointment or the agency contract of a non-captive
13 insurance producer without the mutual agreement of the parties in writing at the time
14 of the termination of the agency agreement or without providing at least one hundred
15 eighty days days' advance written notice, except when the termination is for one of
16 the following reasons which shall constitute "cause" for which an insurer may
17 terminate a producer's appointment without providing such notice:
18 * * *
19 (i) Failure to maintain the agent's professional liability coverage required in
20 the agency contract and as required in R.S. 22:1570.1.
21 * * *
22 §1570.1. Requirement for professional liability coverage
23 A.(1) Every insurance producer who is actively writing insurance
24 policies in this state and is subject to the provisions of R.S. 23:1570 shall
25 maintain professional liability insurance or an errors and omissions policy
ACT No. 380
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words in boldface type and underscored are additions. SB NO. 117 ENROLLED
1 which includes coverage for acts or omissions as a non-captive insurance
2 producer and which policy is for the purpose of providing coverage for the
3 benefit of the insured customers of the producer.
4 (2) An insurance producer who is duly empowered and authorized to act
5 through or on behalf of another licensed insurance producer in the sale,
6 solicitation, or negotiation of insurance may satisfy the requirements of this
7 Subsection with professional liability coverage provided by the authorizing
8 insurance producer.
9 B.(1) Every insurance producer who is actively writing insurance
10 policies in this state and is required to be licensed pursuant to R.S. 22:1543 and
11 who sells insurance products for which the premiums are financed, in whole or
12 in part, by an insurance premium finance company as provided for in R.S.
13 9:3550 shall maintain professional liability insurance or an errors and omissions
14 policy which includes coverage for acts or omissions as an insurance producer
15 and which policy is for the purpose of providing coverage for the benefit of the
16 insured customers of the producer.
17 (2) An insurance producer who is duly empowered and authorized to act
18 through or on behalf of another licensed insurance producer in the sale,
19 solicitation, or negotiation of insurance may satisfy the requirements of this
20 Subsection with professional liability coverage provided by the authorizing
21 insurance producer.
22 C. Should any insurance producer who is subject to the provisions of
23 this Section fail to maintain professional liability insurance or an errors and
24 omissions policy as provided in this Section, such failure shall constitute an
25 unfair trade practice as provided for in R.S. 22:1963 and shall subject the
26 insurance producer to the provisions of R.S. 22:1554(A)(6).
27 D. The provisions of this Section shall not apply to a producer licensed
28 pursuant to R.S. 22:1547(13).
29 * * *
30 §1963. Unfair methods and unfair or deceptive acts and practices prohibited
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1 No person shall engage in this state in any trade practice which is defined in
2 this Part to be an unfair method of competition or an unfair or deceptive act or
3 practice in the conduct of the business of insurance, including unauthorized
4 insurance as provided in R.S. 22:1902 et seq. or the failure to maintain
5 professional liability insurance, if such coverage is required pursuant to R.S.
6 22:1570.1.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.