Insurance Regulation

Producers who allow their license to lapse may reinstate the same license within how many years?

2 years

4 Types of Licensees

1) Individual Producers 2) Business Entity 3) Resident vs. Nonresident 4) Temporary

Prior to transacting insurance in this state, insurance professionals must be properly licensed for:

A specific line of authority

Can business entities act as producers?

Yes, provided they obtain producer's licenses.

What is a Business Entity?

a corporation, association, partnership, limited liability company, limited liability partnership or other legal entity.

If a license has been lapsed for more than 2 years, the producer must

apply for a new license

How often does a producer need to submit a license renewal application?

every 2 years

What is a Producer?

individuals or business entities that are licensed to sell, solicit, or negotiate insurance.

The department of insurance does NOT set _________ or ___________

premium rates or establish fines

Producers who allow their license to lapse may reinstate the same license within two years as long as they provide:

proof of fulfilling all continuing education requirements through the date of reinstatement and paying all overdue fees

Continuing Education Requirements (CE) rules are established to do what?

protect the public by maintaining high standards of professional competence in the insurance industry, and to maintain and improve the insurance skills and knowledge of licensed producers.

If a member or employee of the business entity wants to transact insurance, that person must first:

register with the Dept. of Insurance under the business entity's license and obtain an individual producer's license

License renewals must be completed by:

the last day of the producer's birth month

A temporary license automatically expires when:

the owner disposes of the business

From a legal standpoint, who do producers represent?

their respective insurance companies, NOT their customers

What is the penalty for a licensee who fails to file an address change within the required time?

$50 penalty per violation

Temporary Producer licenses last for how many days?

180 days, after that the person needs to take a producer's exam and receive a standard license.

An insurance producer must report to the commissioner any administrative action taken against him/her in another jurisdiction or by another governmental agency in Louisiana within how many days of the final disposition of the matter?

30 days

Every licensee must notify the Commissioner of any changes to the licensee's residential, mailing, business, or e-mail address or phone number within how many days of the change?

30 days

If a license renewal application is received after the deadline, there is a late fee charge of how much?

$25

A temporary license may be issued to the following individuals:

- surviving spouse/next of kin/ or employee of a licensed insurance producer who is deceased or disabled (mentally or physically). The temporary license would be granted to allow adequate time for the sale of the insurance business, for the return of the producer to the business, or to provide for the training and licensing of new personnel to operated the business -member/employee of a business entity licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or the license -the designee of a licensed insurance producer entering active service in the US Armed Forces -any other person deemed fit by the commissioner

24 hours of approved continuing education instruction or self-study prior to each license renewal is required to all insurance producers licensed in Louisiana and 3 hours must be on____________?

-Ethics *these requirements apply regardless of line/number of lines

Assumed names

-prior to using a name different than his/her legal name, a producer must notify commissioner -this also applies to trade names, which must be registered

An applicant for an Individual Producer's license must meet the following 6 qualifications.

1) 18 years or older 2) resides in the state or maintains his/her principal place of business in the state 3) has not committed any act that is a ground for denial. suspension or revocation 4) has completed a pre licensing course of study for the lines of authority for which the person has applied 5) has paid the designated licensing fees and submitted an application 6) has successfully passed the examinations for the lines of authority for which the person has applied

Individuals who do not reside in Louisiana may obtain a nonresident producer license if he or she meets the following 4 qualifications:

1) Currently licensed as a resident and in good standing in her/her home state 2) Has requested a license and has paid the licensing fees 3) Has provided the Commissioner with either a Uniform Application or the same license application that was submitted to her/her home state 4) The producer's home state awards nonresident producer licenses to residents of Louisiana on the same basis (known as reciprocity)

Insurance producers in this state may transact insurance in one or more of the following (15) lines of authority:

1) Life -coverage on human lives 2) Variable life and variable annuity products 3) Health and accident -coverage for sickness, bodily injury or accidental death and disability income. 4) Property -coverage for the direct and consequential loss or damage to property of every kind. 5) Casualty -coverage against legal liability 6) Personal Lines -noncommercial property any/or casualty coverage 7) Title 8) Credit -debt insurance (limited line) 9) Travel -coverage for trip cancellation, interruption, baggage, life, sickness, and accident, and personal effects limited to a specific trip 10) Industrial fire 11) Surety -insurance or bond that covers obligations to pay debts 12) Bail Bonds 13) Surplus lines 14) Limited lines 15) Any other type of insurance as determined by the Commissioner

Department of Insurance: Powers and Duties

1) control and supervise all insurance business in the state 2) enforce insurance laws/statutes 3) issue licenses and certificates of authority 4) approve all policy forms 5) conduct examinations, investigations and hearings 6) impose penalties

Within 30 days of a conviction in district court, a producer must:

1) report the conviction to the Commissioner 2) provide a copy of the bill of information or indictment

All insurance producers licensed in the state of Louisiana must complete what to renew license?

24 hours of approved continuing education instruction or self-study prior to each license renewal

producers licensed to write Property, Property and Casualty, or personal lines insurance must also include _?_ CE hours on ___?____ insurance?

3 Hours Flood Insurance

A nonresident producer who moves from one state to another state or a resident producer who moves from this state to another state must file a change of address form and provide certification from the new resident state within HOW MANY DAYS of the change of legal residence?

30 days of the change of legal residence--no fee or license application is required.

Reporting of Actions

Within 30 days of a conviction in district court, a producer must report the conviction to the Commissioner and provide a copy of the bill of information or indictment

An insurance license is usually not required if:

a person does not receive any commission for transactions.

A Producer's license remains in effect unless:

a producer's license remains in effect unless it's revoked, suspended or non-renewed, as long as the producer maintains satisfactory conduct, completes the continuing education requirements, and pays the required fees.

The Commissioner may require temporary licenses to be monitored by who?

a sponsor and may revoke it at any time.