HLS 21RS-1048 ORIGINAL
2021 Regular Session
HOUSE CONCURRENT RESOL UTION NO. 111
BY REPRESENTATIVE HOLLIS
INSURANCE: Creates a task force to study the feasibility of exempting producers of
sureties from certain requirements of R.S. 22:855
1 A CONCURRENT RESOL UTION
2To create a task force to study and make recommendations concerning whether certain
3 reimbursement and disclosure provisions of R.S. 22:855 should apply to both
4 producers of traditional insurance policies and producers of surety bonds.
5 WHEREAS, R.S. 22:855 provides that an insurance producer may receive
6reimbursement from the insured for expenses incurred by the producer directly related to the
7insurance coverage for the insured; and
8 WHEREAS, R.S. 22:855 provides that a producer may charge a reasonable agency
9fee related to the services provided by the producer; and
10 WHEREAS, R.S. 22:855 provides that any reimbursement or agency fee shall be
11itemized separately on an invoice statement; and
12 WHEREAS, R.S. 22:855 provides that each such charge must be prominently
13disclosed and itemized separately on the invoice; and
14 WHEREAS, provisions of R.S. 22:855 may be interpreted by the Department of
15Insurance to require producers of surety bonds to separately disclose and itemize all fees
16charged by a producer of surety bonds; and
17 WHEREAS, concerns have been expressed regarding the clarity of R.S. 22:855 as
18it applies to the practice of separately disclosing and itemizing all fees charged by a producer
19of surety bonds; and
Page 1 of 3 HLS 21RS-1048 ORIGINAL
HCR NO. 111
1 WHEREAS, concerns have been expressed that not all producers of surety bonds
2have been separately disclosing and itemizing all fees charged by a producer of surety bonds
3on a consistent basis; and
4 WHEREAS, concerns have been expressed regarding whether applying all provisions
5of R.S. 22:855 to both producers of traditional insurance policies and producers of surety
6bonds best serves consumers; and
7 WHEREAS, distinctions exist between the market for traditional insurance policies
8and the market for producers of surety bonds; and
9 WHEREAS, concerns have been expressed regarding the fairness and consistency
10of requiring all producers of surety bonds to separately disclose and itemize all fees charged
11but not requiring producers of surety bonds to separately disclose and itemize all
12contingency commissions that will be received; and
13 WHEREAS, additional study of the issues raised by requiring producers of surety
14bonds to separately disclose and itemize all fees charged by a producer of surety bonds could
15be beneficial to the health of the insurance and surety bond markets.
16 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
17establish the Surety Producer Disclosure Task Force to study and make recommendations
18regarding the clarity of R.S. 22:855 and whether all provisions of R.S. 22:855 should apply
19to producers of surety bonds.
20 BE IT FURTHER RESOLVED that the membership of the task force shall be as
21follows:
22 (1)The speaker of the House of Representatives or his designee.
23 (2)The president of the Senate or his designee.
24 (3)The commissioner of the Department of Insurance or his designee.
25 (4)One representative from the Independent Insurance Agents and Brokers of
26 America.
27 (5)One representative from the Professional Insurance Agents of Louisiana.
28 BE IT FURTHER RESOLVED that the task force shall convene its first meeting by
29September 1, 2021, and shall report its findings and recommendations to the Louisiana
30Legislature no later than February 1, 2022.
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HCR NO. 111
1 BE IT FURTHER RESOLVED that the task force shall study and make
2recommendations on matters that include but are not limited to the following:
3 (1)New language that could clarify the legislative intent of R.S. 22:855.
4 (2)The impact of exempting producers of sureties from certain provisions of
5 R.S. 22:855.
6 BE IT FURTHER RESOLVED that this Resolution be transmitted to the
7commissioner of the Department of Insurance, the chief executive officer of the Independent
8Insurance Agents and Brokers of America, and the executive vice president of the
9Professional Insurance Agents of Louisiana.
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)]
HCR 111 Original 2021 Regular Session Hollis
Creates a task force to study and make recommendations concerning the feasibility of
exempting producers of sureties from certain requirements of R.S. 22:855 by Feb. 1, 2022.
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