2006 Louisiana Laws - RS 22:627 — Quoted premium shall include all charges; dollar amount required

§627.  Quoted premium shall include all charges; dollar amount required

A.  The premium quoted by the insurer shall be a specific dollar amount which shall be inclusive of all fees, charges, premiums, or other consideration charged for the insurance or for the procurement thereof, except that:

(1)  In any subsequent modification of the policy, the insurer may require that evidence of insurability be furnished at the insured's expense;

(2)  The premium and premium tax on a surplus lines policy shall be separately stated on the declaration page.

B.(1)  No insurer or its officer, employee, agent, broker, solicitor, or other representative shall charge or receive any fee, compensation, or consideration for insurance which is not included in the premium quoted to the insured and the premium specified in the policy delivered to the insured, except for the premium tax on a surplus lines policy which shall be separately stated, and except for reimbursement for expenses due the agent, and except for an agency fee, if any, as authorized hereunder.

(2)(a)  The agent may receive reimbursement from the insured for expenses incurred by the agent directly related to the insurance coverage for the insured.  In addition, the agent may charge a reasonable agency fee related to the services provided by the agent.  Any reimbursement or agency fee shall be itemized separately on an invoice statement.  A single invoice may be used to make known all charges.  Each such charge must be prominently disclosed and itemized separately on the invoice.

(b)  The reimbursement for expense and agency fees shall not be considered premium for any purpose, nor shall they be subject to premium taxes or surplus lines premium taxes.  Agency fees for criminal bail bond or homeowners or personal automobile insurance that are standard risks insurable at standard rates shall not exceed twenty-five dollars.

(c)  The commissioner of insurance may promulgate rules to enforce the provisions of this Section.

C.  Each policy delivered to the insured shall have the full and accurate dollar amount of the premium disclosed on the policy, which shall be inclusive of all fees, charges, premiums, or other consideration charged for the insurance or for the procurement thereof, except that, in any subsequent modification of the policy, the insurer may require that evidence of insurability be furnished at the insured's expense, and except that the premium tax on a surplus lines policy shall be separately stated, and except for reimbursement of expenses and agency fees as authorized in Paragraph (B)(2).

D.(1)  Any person who aids, assists in, or procures the preparation of any invoice, insurance policy or part thereof, or any other document used in the charging of any fee, compensation, or other consideration, except as provided in Subsections B and C of this Section, which is not included in the premium quoted by the insurer and in the premium disclosed on the policy shall be liable to the insured.

(2)  In this Subsection, a person who procures the preparation of any document specified in Paragraph (1) includes a person who knowingly permits the preparation of such a document to be done or participated in by a subordinate or employee, whether or not that person directly ordered or caused the subordinate or employee to prepare the document.  It shall not include a person furnishing typing, reproducing, or providing other clerical or mechanical assistance with respect to a document.

E.(1)  The commissioner may convene a hearing, pursuant to the provisions of Part XXIX of the Insurance Code, R.S. 22:1351 et seq., and upon making a written finding that an amount in excess of the quoted premium has been received, shall issue a written order to the person who received the excess amount to refund it to the person who paid it.  Such amount shall be paid within thirty days after the date of the commissioner's order in the matter.

(2)  Upon such determination, the person ordered to pay the refund may appeal to the Nineteenth Judicial District Court after paying to the commissioner a sum equal to one-half of the assessed refund.  The commissioner shall keep any such sum paid in escrow and shall return it promptly to the payor if he prevails in the court proceeding.  Thirty days after the commissioner's written findings or thirty days after final denial of the appeal, any order of the commissioner made pursuant to this Section shall be enforceable as a judgment under the Code of Civil Procedure.

F.  Each violation of Subsection B or C of this Section shall be theft and a violation of R.S. 14:67.

G.  The commissioner may assess one or more of the following penalties against any person who violates the provisions of this Section:

(1)  A fine in an amount not greater than five thousand dollars,

(2)  A suspension of an insurer's certificate of authority or an agent's, broker's, or solicitor's license, or

(3)  A revocation of an insurer's certificate of authority or an agent's, broker's, or solicitor's license.

H.  The provisions of this Section shall apply to all policies except life, accident, health, and reinsurance policies.

Acts 1988, No. 172, §1, eff. June 29, 1988; Acts 1989, No. 563, §1, eff. Sept. 1, 1989; Acts 1992, No. 1130, §2; Acts 1995, No. 704, §1; Acts 1999, No. 135, §1; Acts 1999, No. 551, §1; Acts 2004, No. 466, §1, eff. Jan. 1, 2005.