Louisiana State Insurance Laws (P&C Exam)

If the commissioner deems the temporary license is necessary for the servicing of an insurance business in the following cases:

- a deceased or disabled producer's surviving spouse, next of kin, or employee, a deceased producer's administration or executor, or a disabled producer's court-appointed personal representative to sell, return the producer to, or train and license new personnel to operate, the business. -To a member or employee of a business entity licensed as an insurance producer, upon the death or disability of the entity's designated producer -to the designee of a licensed producer entering active service in the U.S. Armed forces -In any other circumstance, as the commissioner deems such issuance to be in the public interest

A producer must report to the commissioner any administrative action taken against them in another jurisdiction or by another government agency:

-In this state within 30 days of the matters final deposition -The report must include a copy of the order, consent to order, and all relevant legal documents. -any conviction or no contest plea in district court to a felony -participation in a plea trial diversion program for a felony charge. -conviction of any misdemeanor involving moral or public corruption within 30 days of a conviction -the producer must provide a copy of the information or indictment.

Continuing Education Requirements: Requirements apply to all producers licensed for the lines of health, property, casualty, bail bonds, personal lines or title and adjusters

-Non-residents licensees who have met their CE requirements in their home state. -If a producer or adjuster is not required to take CE in their home state that producers/adjusters is not required to submit CE credits to renew their LA license. -A resident producer renewing a license for the first time after initial issuance -An adjuster who has been licensed for more than 1 full year on their renewal date. (This exemption is applicable only to the first license renewal for that license. - Any person at least 65 years of age on or before Jan 1, 2012 who no longer is an active producer, and either receives Social Security benefits or represents/operates through a licensed LA insurer.

If a resident license, while maintaining a resident license:

-also maintains or submits an application for a license in any other state or jurisdiction that says they are a resident of that state being applied for OR -if the licensee ceases to be a resident of resident

A person applying for a producer license must:

-atleast 18 years old -Reside, or maintain their place of business in LA -Not committed any act that would is grounds for license denial, suspension, or revocation. -completed a prelicensing course of study & pass the exam -paid all of the appropriate fees -has the commissioner's written consent, if required by any statute regulating crimes affecting persons engaged in the business of insurance whose activities affect interstate commerce.

A non resident person will be licensed as a nonresident producer if he/she:

-currently licensed as a resident & is in good standing of their home state. -submitted the proper licensure request and paid all appropriate fees. -submitted to the commissioner, either the licensure application that he/she submitted to their home state or a completed uniform application. -resides in a state that awards nonresident licenses to the LA residents on a reciprocal basis. -Has designated the commissioner as their agent for the service of legal process. -An applicant may qualify for a nonresident license if she/he holds a similar resident license in any state, district, or territory of the U.S. or Canada

Before approving the application, the commissioner must find that the entity has:

-paid all appropriate fees -designated at least one licensed individual producer responsible for its compliance with this states laws.

The commissioner may punish those who fail to comply with this rule by:

-probation, suspension, revocation, or refusal of issue, renew, or reinstate an insurance producer license. -Levying a fine of up to $500 violation occurring ( up to $10,000 for all violations in a year per applicant or licensee)

A non-resident business entity must provide to the commissioner upon request, the name of every member, partner, officer, director, and person who controls directly of indirectly ****% or more of the nonresident business entity.

10%

The commissioner may issue a temporary insurance producer license for up to *** days without requiring an examination.

180 days

Every licensed producer must file an application for renewal of their license every *** years

2 years

During each 2-year license period, producers licensed for one or more lines of life, health, property, casualty, or personal lines must complete *** hours of continued education.

24 hours with atleast 3 of those hours in ethics

If there is any change of status of an individual who is registered under the business entity license, the business entity licensee must notify the commissioner within **** days.

30 days

Every licensee must notify the Commissioner of any change of address, legal name, or information submitted on the on the application within **** days. If you fail to comply with these requirements will result in?

30 days, $50 fine per violation

Expiration

A producer remains in effect as long as all app fees are paid, requirements are met, unless revoked, suspended, denied renewal or reinstatement, expired, or surrendered.

A **** acting as a producer must obtain a producer license.

Business entity

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

Business entity

Business Entity:

Every member, partner, officer, and director of a resident business entity must register with the department of insurance under the business entity's license. Any person who controls directly or indirectly 10% or more of a producer business entity must also register with the department of insurance under the business entity's license.

A ******* is a person required under this state's laws to be licensed to sell, solicit, or negotiate insurance. This includes all persons or business entities referred to as "insurance agent", "agent", "insurance broker", "broker", "insurance solicitor", "solicitor", or "surplus lines broker".

Individual producer

License that end in a even-numbered years vs. odd-numbered years

Licenses that end in even numbered years renew in even years & licenses that end in odd numbers will renew in odd years.

Any licensee who fails to file timely for license renewal will be charged

a late fee of $50 (or other authorized amount) per license.

Assumed names

a producer must notify the commissioner before using an assumed name to do business, or using/ changing any trade name. A registration letter from the secretary of state must accompany an application for a trade name.

The commissioner may require the temporary licensee to have a licensed producer or insurer as a sponsor to ....

assume responsibility for all acts of the temporary licensee.

Which of the following statements is true with respect to assumed names? a. An agent may not transact business in Louisiana under a named assured. b. An agent who will be transacting business in Louisiana under an assumed name must notify the Commissioner within 30 days after using the assumed name. c. An agent who will be transacting business in Louisiana under an assumed name must notify the Commissioner prior to using the assumed name d. An agent who will be transacting business in the District under an assumed name must notify the commissioner upon the first renewal of his/her agent license.

c. An agent who will be transacting business in Louisiana under an assumed name must notify the Commissioner prior to using the assumed name

Which of the following statements is correct? a. A producer allows the license to transact all lines of insurance b. A business entity acting as a producer is not required to be licensed as a producer c. No person may act as a producer in Louisiana unless licensed by the Department of Insurance d. A producer may be licensed for only one line of authority

c. No person may act as a producer in Louisiana unless licensed by the Department of Insurance

Which of the following is correct regarding a temporary license? a. The duration of a temporary license may not exceed 18 days b. A temporary license may be issued for up to 12 months after successfully completing the licensing examination c. A temporary license may not be issued to an employee of a business entity d. A temporary license may be issued to the surviving spouse of a disabled or deceased producer

d. A temporary license may be issued to the surviving spouse of a disabled or deceased producer

A temporary license may not continue after the owner or the personal representative

disposes of the business

When a nonresident or resident producer moves from one state to another, they must

file a change of address & provide certification from the new residing state withing 30 days of the legal change.

The commissioner may limit any temporary licensee's authority in anyway deemed necessary to *****

protect insureds and the public

When completing the background info portion of the Uniform Business Entity Application pertaining to the disclosure of certain lawsuits or arbitration proceedings, corporations, banks, partnerships, or other business entities, and their executive officers and directors, must disclose those proceedings occurring within the ******* years

the past 5 years

To renew a producer license....

the producer must notify the commissioner of insurance of the licensee's intention to continue their license as either a producer, limited lines producer, or surplus lines producer.

Any producer using a non-approved trade name may be fined

up to $250, and if they continue to using the name for 10 days or more after being notified by the commissioner to cease using it, they will be fined up to additional $5,000

A licensed business entity operating at multiple locations must notify the commissioner .....

within 30 days whenever a new location opens.