2006 Louisiana Laws - RS 22:3041 — Licensure required

§3041.  Licensure required

A.  No person shall act as, or offer to act as, or hold himself out to be an administrator in this state without a valid license as an administrator issued by the commissioner.  The commissioner may impose a fine of five thousand dollars per violation against any person who acts as an administrator without a valid license, and each day shall be considered a separate violation.

B.  Applicants under this Section shall pay a licensing fee in an amount set forth in R.S. 22:1078 and shall make an application to the commissioner upon a form to be furnished by the commissioner.  The application shall include or be accompanied by the following information and documents:

(1)  All basic organizational documents of the administrator, including any articles of incorporation, articles of association, partnership agreement, trade name certificate, trust agreement, shareholder agreement, and other applicable documents and all amendments to such documents.

(2)  The bylaws, rules, regulations, or similar documents regulating the internal affairs of the administrator.

(3)  The names, addresses, official positions, and professional qualifications of the individuals who are responsible for the conduct of affairs of the administrator, including all members of the board of directors, board of trustees, executive committee or other governing board or committee, the principal officers in the case of a corporation or the partners or members in the case of a partnership or association, shareholders holding directly or indirectly ten percent or more of the voting securities of the administrator, and any other person who exercises control or influence over the affairs of the administrator.

(4)  An affidavit signed by the president or other authorized officer stating that the administrator has available for inspection by the commissioner, its latest financial statement.

(5)  The applicant shall submit summary information concerning its business organization and employees sufficient to fulfill the requirements of this Chapter.

(6)  If the applicant will be managing the solicitation of new or renewal business, proof that it employs or has contracted with an agent licensed by this state for solicitation and taking of applications.  Any applicant who intends to directly solicit insurance contracts or to otherwise act as an insurance agent must provide proof that he has a license as an insurance agent in this state.

(7)  Such other pertinent information as may be required by the commissioner.

C.  The applicant shall make available for inspection by the commissioner copies of all contracts with insurers or other persons utilizing the services of the administrator.

D.  The commissioner may refuse to issue a license if the commissioner determines that the administrator, or any individual responsible for the conduct of affairs of the administrator as defined herein, is not competent, trustworthy, financially responsible or of good personal and business reputation, or has had an insurance or an administrator license denied or revoked for cause by any state.

E.  A license issued under this Section shall remain valid, unless surrendered, suspended, or revoked by the commissioner, for so long as the administrator continues in business in this state and remains in compliance with this Chapter.

F.  An administrator is not required to hold a license as an administrator in this state if all of the following conditions are met:

(1)  The administrator has its principal place of business in another state.

(2)  The administrator is not soliciting business as an administrator in this state.

(3)  In the case of any group policy or plan of insurance serviced by the administrator, fewer than one hundred certificate holders reside in this state.

G.  A person shall not be required to maintain a license as an administrator under this Chapter if the person acts solely as the administrator of one or more bona fide employee benefit plans established and maintained by an employer or an employee organization, or both, for which the insurance laws of the state are preempted pursuant to the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.).  The person exempted herein shall register with the commissioner annually to verify their status.

H.  An administrator shall immediately notify the commissioner of any material change in its ownership, control, or other fact or circumstance affecting its qualification for a license in this state.

I.(1)  An administrator shall maintain and keep in full force and effect a surety bond in an amount of one hundred thousand dollars issued by an authorized surety company doing business in this state, or deposit with the commissioner a safekeeping or trust receipt from a bank doing business in the state or from a savings and loan association chartered to do business in this state indicating that the administrator has deposited one hundred thousand dollars in money, or bonds of the United States, the state of Louisiana, or any political subdivision thereof of the par value of one hundred thousand dollars.  The surety bond or the money or the securities shall be held in trust for the benefit and protection of and as security for all policyholders of the insurer and participants of the plan with whom the administrator contracts.  The provisions of this Paragraph shall not apply to administrators required to post a suretybond in accordance with provisions of R.S. 23:1192(A)(7), in providing services for a group self-insurance fund for workers' compensation insurance.

(2)  No bond shall be required by the commissioner for any administrator whose business is restricted solely to benefit plans which are either fully insured by an authorized insurer or which are bona fide employee benefit plans established by an employer or any employee organization, or both, for which the insurance laws of this state are preempted by the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.).

Acts 1993, No. 144, §1; Acts 2004, No. 372, §1.