Commissioner of Insurance (Chapter 12, Section 1)

Question 1

Commissioner Of Insurance

Answer 1

Is responsible for making sure the provisions of the Louisiana Insurance Code are enforced. The commissioner may:

• Conduct legal hearings wherever there is cause to believe of violation of the Insurance code
• Issue cease and desist orders
• Examine insurers for solvency
• issue, renew, suspend, and revoke licenses
• issue a subpoena

Question 2

Examination of Records - (Commissioner Of Insurance)

Answer 2

The commissioner of insurance may conduct a financial examination of any insurance company as often as deemed appropriate. At the very least, a company shall be examined once every 5 years.

• The commissioner must examine an insurer after receiving an application for a certificate of authority
• The Commissioner may examine a producer whenever 3 complaints have been received within a 30 day period.

Question 3

Notice and hearing - (Commissioner Of Insurance)

Answer 3

The commissioner may call and hold hearings if a producer is suspected of violating the Insurance Code. The hearing will be held within 30 days of demand.

Question 4

Penalties - (Commissioner Of Insurance)

Answer 4

After the hearing, if the commissioner determines that those involved are responsible, a fine can be given up to $1,000 for each unintentional violation, not to exceed $100,000 for all violations during a calendar year.
If a person knew or should have known that an illegal act was occurring, the fine can be increased to $25,000 per violation or a maximum of $250,000 within a 6 month period.
The commissioner can also suspend or revoke a license

Question 5

Cease and desist order - (Commissioner Of Insurance)

Answer 5

The Commissioner may issue a cease-and-desist order to any person found to have committed an unfair or deceptive act. It prohibits a specific practice listed in the order.