The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Thomas L. Tyler.
DIGEST
SB 180 Original 2020 Regular Session Morris
Present law defines a title insurance producer as a person authorized on behalf of a title insurer to
issue title insurance reports or policies.
Proposed law distinguishes between individual title insurance producers and agency producers.
Defines "individual title insurance producer" or "individual producer" as a licensed natural person
who is either a resident of Louisiana or a nonresident employed by a resident licensee authorized to
issue title insurance reports or policies.
Defines "agency title insurance producer" or "agency producer" as a business entity appointed to
represent a title insurer, whose principal place of business is physically located in Louisiana, or who
has designated a resident licensed individual producer employed by the business entity as responsible
for complying with the requirements of present law.
Proposed law retains provisions in present law requiring that only persons authorized as title insurers
or producers under the Louisiana Insurance Code are qualified to issue title insurance policies,
reports, or to otherwise transact the business of title insurance. Retains the requirement that all title
insurance policies and reports covering an insurable interest in title to an immovable located in
Louisiana be signed by a producer licensed as a title insurer in Louisiana under the Code or by an
employee of a title insurer issuing policies and reports when the employee is a producer licensed
under the Code as to title insurers.
Proposed law provides the following qualifications for an individual title insurance producer:
(1)Shall be a natural person at least 18 years old.
(2)Shall be a resident of Louisiana, or be a full-time employee of a licensed agent producer
whose principal place of business is physically located in Louisiana.
(3)Shall not have committed any act that is grounds for probation or suspension of an insurance
license.
(4)Shall hold a high school diploma, a diploma for completion of a home study program
approved by the State Board of Elementary and Secondary Education, or a high school
equivalency diploma issued after successfully completing the test of general educational
development.
(5)Shall have never been convicted of a felony, nor been pardoned. (6)Shall be able to read, write, speak, and be sufficiently knowledgeable of the English
language.
(7)Shall receive a passing score on the title insurance examination administered by the
Department of Insurance.
(8)Shall complete the required hours of prelicensing education as required in the Louisiana
Insurance Code related to Louisiana property law and title insurance, within the one year
period prior to application.
(9)Shall be authorized to represent a title insurer.
Proposed law provides the following qualifications for an agency title insurance producer:
(1)Shall be a Louisiana entity whose principal place of business is physically located in
Louisiana, or a foreign entity registered to do business in this state whose principal place of
business within Louisiana is suitable for conducting the business of title insurance and real
estate closing.
(2)Shall employ at least one licensed individual producer designated with responsibility for
ensuring compliance with the requirements in present law.
(3)Shall maintain its appointment to represent a title insurer, along with affiliation of the
individual producer designated in Paragraph (2) above.
(4)The entity and its designated individual producer shall not have had an agent producer
license, or its equivalent or an individual producer license, or its equivalent, suspended,
revoked, or refused in any other state, province, district, or territory.
Present law authorizes the Department of Insurance or a title insurer, during normal business hours,
to examine, audit, and inspect any and all books, records, files, and escrow and operating accounts
related to the title insurance business maintained by the insurance producer or its successor in
interest, transferee, or receiver as provided in present law.
Proposed law retains present law and requires all producers to maintain these records in a legible
format, readily accessible to the Department of Insurance in a location fully accessible from or
physically existing in Louisiana.
Present law requires that individual applicants for licensure by the Department of Insurance pass an
examination with a passing score of at least 70% for each line of insurance in which that applicant
seeks to transact business in Louisiana unless otherwise exempt in the Code. Requires that the exam
test the individual's knowledge in the lines of authority for which application is made, the duties and
responsibilities of an insurance producer, and the insurance laws and regulations of Louisiana.
Present law does not apply to applicants seeking to write industrial fire, limited life, health and
accident, surety, title, surplus lines, or credit insurance business only. Proposed law retains these provisions but also excludes applicants seeking to write title insurance.
Proposed law provides that an attorney licensed to practice in Louisiana who is applying for
licensure as a title insurance producer is exempt from 14 hours of the prelicensing education
requirement in those subject areas for which education has already been received through the
applicant's legal degree program.
Present law requires each registered insurance producer prelicensing program to provide instruction
by a qualified instructor in a structured setting or by verifiable approved self-study with a minimum
of 20 hours of supervised instruction or self-study, including instruction in applicable insurance
principles, state laws and regulations, and ethical practices, for each of the following lines of
authority a license is sought: life, health and accident, property, casualty, and personal lines.
Proposed law retains these provisions and specifically includes title insurance in the lines of
authority.
Effective August 1, 2020.
(Amends R.S. 22:512(16), 513, 519, 1545(C)(2), and 1571(E)(1); adds R.S. 22:1545(C)(7))