2006 Louisiana Laws - RS 22:1136 — Application for license

§1136.  Application for license

A.  A person applying for a resident insurance producer license shall make application to the commissioner of insurance on the Uniform Application and declare under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief.  Before approving the application, the commissioner shall find that the individual:

(1)  Is at least eighteen years of age.

(2)  Resides in the state or maintains his principal place of business in the state.

(3)  Is not disqualified for having committed any act that is a ground for denial, suspension, or revocation set forth in R.S. 22:1142.

(4)  Has completed a prelicensing course of study for the lines of authority for which the person has applied.

(5)  Has paid the fees set forth in R.S. 22:1078.

(6)  Has successfully passed the examinations for the lines of authority for which the person has applied.

(7)  When applicable, has the written consent of the commissioner of insurance pursuant to 18 U.S.C. 1033, or any successor statute regulating crimes by or affecting persons engaged in the business of insurance whose activities affect interstate commerce.

B.(1)(a)  A business entity acting as an insurance producer is required to obtain an insurance producer license.  Every member, partner, officer, director, stockholder, and employee of the business entity personally engaged in this state in soliciting or negotiating policies of insurance shall be registered with the Department of Insurance under such business entity's license, and each such member, partner, officer, director, stockholder, or employee shall also qualify as an individual licensee for any line of insurance the business entity is licensed to transact.  Licensing of any limited liability company or limited liability partnership as an insurance producer is subject to prior approval of the commissioner of insurance.

(b)  The business entity licensee shall within thirty days notify the commissioner of insurance of any change of status of an individual who is registered under the business entity license.

(c)  Any business entity operating at more than one location shall notify the commissioner of insurance of each permanent branch location address within thirty days from the date of the opening of the new location.  There must be at least one individual licensed insurance producer registered with the Department of Insurance for each branch location.

(d)  Any business entity  which fails to comply with this Subsection shall be subjected to a fine of one hundred dollars for each violation.  Any entity against which a fine has been levied shall be given due notice of such action.  Upon receipt of this notice, the entity may apply for and shall be entitled to a hearing.

(2)  Application shall be made using the Uniform Business Entity Application.  Before approving the application, the commissioner of insurance shall find that:

(a)  The business entity has paid the fees set forth in R.S. 22:1078.

(b)  The business entity has designated one or more licensed individual producers responsible for the business entity's compliance with the insurance laws, rules, and regulations of this state.

(3)  The Uniform Business Entity Application shall be accompanied by:

(a)  If a corporation or a limited liability company, a current letter of good standing from the secretary of state's office, verification by the secretary of the corporation that the directors and officers were duly appointed or elected in accordance with the articles of incorporation and bylaws of the corporation, and an attestation by the president of the corporation disclosing the identity and percentage of ownership of all officers and directors, and of those persons who own ten percent or more of the owner applicant as that term is used in the Uniform Business Entity Application.

(b)  If a partnership or a limited liability partnership, a current letter of registration from the secretary of state's office, verification by the appropriate partner that the partners listed on the application are duly named as partners in accordance with the partnership agreement, and a statement under oath verifying the percentage of interest and control of each partner in the partnership.

(c)  If a bank chartered under the laws of this or any state, or of the United States, a current letter of good standing from its chartering authority, verification by the cashier or secretary of the bank that the directors and executive officers were duly appointed or elected in accordance with the articles and bylaws of the bank, and an attestation by the president of the bank disclosing the identity and percentage of ownership of the shareholders who own ten percent or more of the bank; such shareholders owning ten percent or more of the shares of the bank shall constitute the owners, and such executive officers shall constitute the officers, as those terms are used in the Uniform Business Entity Application.

(d)  If an association or other business entity, such documentation as the commissioner of insurance may deem necessary and appropriate.

(4)  When completing the background information 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, shall disclose those proceedings occurring within the past five years which are considered to be material  under generally accepted accounting principles for purposes of financial statement disclosure.

C.  Any professional law corporation formed pursuant to R.S. 12:801 et seq., or any limited liability company, limited liability partnership, or partnership formed for the practice of law, as authorized by R.S. 37:213, may be licensed as a title insurance producer.

D.  The commissioner of insurance may require any documents deemed necessary to verify the information contained in an application.

E.  Each insurer that sells, solicits, or negotiates any form of limited line credit insurance shall provide to each individual whose duties will include selling, soliciting, or negotiating limited line credit insurance a program of instruction that may be approved by the commissioner of insurance.

F.  Any license issued pursuant to an application claiming residency for licensing purposes, as defined herein, shall constitute an election of residency in the state, and shall be void if the licensee while maintaining a resident license also maintains a license in, or thereafter submits an application for a license in, any other state or other jurisdiction stating that the applicant is a resident of such other state or jurisdiction, or if the licensee ceases to be a resident of this state.

G.  Except as authorized by R.S. 6:242, no bank, bank holding company, or any subsidiary or employee thereof shall be licensed as or engage in any insurance activity as an insurance producer.  However, a bank which was engaged as an insurance producer on January 1, 1984, may continue to be so engaged.  The commissioner shall license any qualified state or national bank, bank holding company, or any subsidiary or employee thereof to engage in any insurance or annuity activity as authorized by R.S. 6:242, as an insurance producer.

H.  In addition to the authority conferred by Subsection G of this Section, or R.S. 6:242, a bank, bank holding company, or any subsidiary or employee thereof shall have and possess, and may exercise, such rights, powers, privileges, and immunities of a national bank or national bank branch engaged in insurance sales activities in this state.

Acts 2001, No. 158, §1, eff. Jan. 1, 2002; Acts 2005, No. 228, §1, eff. June 29, 2005.