Licensing (Chapter 12, Section 1)

Question 1

Producers

Answer 1

An individual appointed by an insurance company that represents the company and presents policies on it’s behalf is called a producer.

Question 2

Business Entity

Answer 2

• A licensed producer must be designated as responsible for compliance with state insurance laws and regulations.
• If a member or employee of the business entity wants to transact insurance, that person must first register with the Department of Insurance under the business entity’s license and obtain an individual producer’s license.

Question 3

Process

Answer 3

An applicant for a resident producer license in Louisiana must:

• be at least 18 years old
• Not have committed any act that is grounds for denial, suspension, or revocation
• Completed a prelicensing course
• Have passed the state exam for the lines of authority in which licensure is sought.
• Submit the application with fees
• Not intend to use the license primarily to write controlled business
• Resides in this state

Question 4

Nonresident Producers

Answer 4

A producer who holds a resident license in a different state may apply for a nonresident license in LA, as long as both states have a reciprocal agreement. To apply, nonresidents must submit an application form, proof of resident license in good standing, and fees. Nonresident producer applicants do not have to take the LA state licensing exam, but must not have committed any act for which the license could be denied, suspended or revoked.

Question 5

New Residents

Answer 5

A nonresident producer who moves from one state to another must file a change of address form and provide certification from the new resident state within 30 days of the change of legal residence.

Question 6

Temporary Licensing

Answer 6

a temporary license may be issued in cases where a producer has become disabled or dies, requiring a replacement to service the producer’s business. People eligible for a temporary license include the producer’s surviving spouse, court-appointed personal representative, or the business owner/partner/employee. A temporary license is valid for a maximum of 180 days.

Question 7

Continuing education

Answer 7

Producers must complete 24 hours of continuing education every 2 years to keep their license active. 3 of those hours must be in ethics. Submission of a completed renew form and payment of a proper fee is also required.

• Up to 10 hours of unused continuing education may be carried forward to the next renewal period.
• Nonresident producers are not required to complete Louisiana Continuing education as long as their home state requirements are met
• Continuing education requirements do not apply to a person who is at least age 65 and has at least 15 years of experience as a licensed producer.

Question 8

Reinstatement and Renewal

Answer 8

A producer who allows his or her license to lapse may, within 12 months from the renewal date, reinstate the license without retaking the state licensing exam. However, a penalty of double the unpaid renewal fee will be required.
-If the license has been lapsed for more than 12 months, the applicant must fulfill the requirements for issue of a new license.

Question 9

Probation, suspension, revocation, refusal to issue or renew of licenses

Answer 9

The commissioner may place on probation, suspend, revoke, refuse to renew, or deny a license to any person who has:

• Provided incorrect, misleading, incomplete or untrue information in the license application.
• Violating any insurance laws, regulations, subpoena, or orders from the commissioner.
• Obtaining a license through fraud or misrepresentation
• Intentionally misrepresent the terms of an insurance contract
• Been convicted of a Felony
• Committed any insurance unfair trade practice
• Uses fraudulent, coercive, or dishonest practices or demonstrating incompetence, untrustworthiness, or financial irresponsibility in this or any other state
• Having an insurance license denied, suspended, or revoked in another state.
• Forging a name to an insurance document or application
• Cheating on an insurance license examination
• Knowingly accepting insurance business from an unlicensed individual
• Failing to comply with a court order imposing child support
• Failing to pay state income tax