2006 Louisiana Laws - RS 22:1138.2 — Specialty limited lines motor vehicle title insurance producer licenses

§1138.2.  Specialty limited lines motor vehicle title insurance producer licenses

A.(1)  A licensed insurance producer or limited lines motor vehicle title insurance producer may be issued a specialty limited lines motor vehicle title insurance producer license pursuant to the provisions of this Section.

(2)  No producer shall sell, solicit, or negotiate motor vehicle title insurance pursuant to a specialty limited lines motor vehicle title insurance producer license other than in connection with retail sales of motor vehicles wherein the transaction exceeds one thousand dollars and as provided in rules and regulations adopted by the commissioner of insurance.

(3)  All insurance written pursuant to a specialty limited lines motor vehicle title insurance producer license shall be issued by a domestic title insurer or foreign or alien title insurer admitted in this state.

B.(1)  For a specialty limited lines motor vehicle title insurance producer license to be issued pursuant to this Section, an applicant must submit to the commissioner of insurance all of the following:

(a)  An application, submitted in a manner prescribed by the commissioner of insurance, containing such information as prescribed by the commissioner.

(b)  A list of the physical locations where activities authorized by the specialty limited lines motor vehicle title insurance producer license will be conducted.

(c)  A list of the employees or representatives of the applicant, as of the date of application, to be registered pursuant to this Section.

(d)  An application fee in the amount of one thousand dollars, or for an applicant registering twenty or fewer employees or representatives, an application fee in the amount of two hundred fifty dollars, or such other amount as may be authorized by R.S. 22:1078.

(2)  Upon approval of the application, but prior to issuance of the license, the applicant shall also submit a registration fee of twenty dollars per employee or representative to be registered by the licensee; however, the registration fee shall not exceed two thousand five hundred dollars annually for each licensee.

C.  Following initial issuance of the specialty limited lines motor vehicle title insurance producer license, the licensee shall submit an annual renewal application, in a manner prescribed by the commissioner of insurance, along with an annual renewal fee of five hundred dollars, or for a licensee registering twenty or fewer employees or representatives, an annual renewal fee of one hundred twenty-five dollars, and an annual renewal registration fee of ten dollars per employee or representative of the licensee, or such other amounts as may be authorized by R.S. 22:1078.

D.  The licensee shall submit, in a manner prescribed by the commissioner of insurance, a current list of employees and representatives for verification by the commissioner every six months in addition to an initial registration fee of twenty dollars per employee or representative not previously registered.

E.  A specialty limited lines motor vehicle title insurance producer license issued pursuant to this Section authorizes an employee or representative of the license holder to participate in enrollment of retail motor vehicle sales customers in the types of insurance specified in this Section without being licensed, provided all of the following is true:

(1)  The employee or representative operates with permission from and under the supervision of the license holder.

(2)  The employee or representative has been instructed with respect to the disclosures which may be required to be made to consumers in connection with the sale of motor vehicle title insurance.

(3)  The employee or representative is not primarily compensated based on the amount of insurance for which the employee or representative enrolls customers.

F.  A specialty limited lines motor vehicle title insurance producer may not in any manner advertise, represent, or otherwise hold out any employee or representative of the license holder as a licensed insurance producer pursuant to another provision of this Part, unless the entity or individual actually holds the applicable license.

G.  If a specialty limited lines motor vehicle title insurance producer violates any provision of this Part, the commissioner of insurance may, after notice and opportunity for a hearing, impose any penalties he deems necessary or appropriate to enforce the provisions of this Part, including but not limited to placing the license holder on probation, suspending, revoking, or refusing to renew or reinstate the license, assessing an administrative penalty against the license holder, suspending the transaction of insurance business at specific locations where a violation of this Part has occurred, or any combination of penalties authorized by this Part.

H.  The specialty limited lines motor vehicle title insurance producer license shall be available equally to residents and nonresidents, provided that if the laws or regulations of any other state would not permit a specialty limited lines motor vehicle title insurance producer that is a resident of this state to obtain a substantially equivalent nonresident license, then residents of that state shall not be permitted to obtain a specialty limited lines motor vehicle title insurance producer license as nonresidents under this Section.

I.  A licensee under this Section may receive commissions or other compensation for services rendered in connection with the sale of motor vehicle title insurance pursuant to this Section.

J.  The commissioner of insurance may, in accordance with state law, adopt reasonable regulations as are necessary or proper to carry out the purposes of this Part.

Acts 2006, No. 360, §1, eff. June 13, 2006.