Regulations (Chapter 12, Section 1)

Question 1

Address/Name Change

Answer 1

Licensees must report a change (Personal or business) in address or name change to the Commissioner within 30 days of the change.

Question 2

Reporting of Actions

Answer 2

Producers must report any bankruptcy, felony conviction, or any other administrative action that occurs in Louisiana or another jurisdiction to the Commissioner within 30 days.

Question 3

Assumed Names

Answer 3

an insurance producer doing business under any name other than the producer’s legal name is required to notify the commissioner of insurance prior to using that assumed name.

Question 4

Appointment of Producers

Answer 4

-A producer must secure an appointment with an insurer before soliciting insurance applications for that insurer.
-only producers appointed by the insurer to act as producers may act on behalf of the insurer.
-a producer’s authority to bind an insurer to an insurance contract may be granted in the producer’s appointment with the insurance company.
-Producers are not required to be appointed as an insurer’s representative if the function as brokers.
-The producer of an insurer may be personally liable if he/she performs an act which is prohibited in the agency contract.
Insurers are responsible for submitting an appointment notice to the Commissioner within 15 days of a producer’s appointment or submission of first insurance application. The insurer is also responsible for paying the producer’s appointment renewal fee. The commissioner has 30 days to make sure the producer is suitable for appointment.

Question 5

Termination of producer appointment

Answer 5

An insurer that terminates a producer appointment must notify the commissioner within 30 days of the date of termination. Within 15 days of such notice, the insurer must mail a copy of the notice to the terminated producer, after which the producer will have 30 days to submit written comments to the commissioner.

Question 6

Commissions

Answer 6

No person shall pay or accept commissions to/from an unlicensed individual for the purpose of selling or negotiating insurance business.

Question 7

Shared Commissions

Answer 7

An agent may legally share commissions only with another agent who is licensed in the same line of insurance.

Question 8

Solicitation and Sales presentations

Answer 8

Producers must provide applicants and prospects with the approved NAIC Buyer’s guide. Producers must also provide a policy summary to applicants

Question 9

Policy Summary

Answer 9

The policy summary contains specific information on the provisions, benefits, and coverage of the policy applied for.

Question 10

Buyer’s guide

Answer 10

The buyer’s guide enables applicants to compare different life insurance policies and help them choose which policy is best for their needs.

Question 11

Controlled business

Answer 11

Controlled business can be defined as policies written on people that the licensed producer has direct influence over: Including family, employers, and/or any company to which the producer has stock control. Obtaining a license for the primary purpose of writing controlled business is prohibited. This occurs when at least 25% of a producer’s commissions is based on controlled business.

Question 12

Commingling

Answer 12

A producer who has combined premiums collected with personal funds has engaged in commingling, which is a prohibited act.

Question 13

Medical examinations and lab tests including HIV

Answer 13

For underwriting an individual policy, insurers may require proposed insureds to undergo an HIV test, but only in conjunction with other medical tests. The basis for requiring an HIV test cannot be the proposed insured’s sexual orientation. The insurer must obtain written consent from the proposed insured in order to conduct the HIV test.