2015 Louisiana Laws
Revised Statutes
TITLE 51 - Trade and Commerce
RS 51:3143 - Requirements for doing business

§3143. Requirements for doing business

            A. Home service contracts shall not be issued, sold, or offered for sale in this state unless the provider has done each of the following:

            (1) Registered with the secretary of state and remains in good standing.

            (2) Provided a receipt for, or other written evidence of, the purchase of the home service contract to the contract holder.

            (3) Provided a copy of the home service contract to the service contract holder within a reasonable period of time from the date of purchase.

            (4) Provided a financial statement annually to the secretary of state showing that the provider is solvent.

            (5) Provided to the secretary of state by March first of each year a report documenting all of the following for the previous calendar year:

            (a) The number of home service contracts issued or sold with respect to residential property.

            (b) The gross consideration received.

            (c) The number and dollar amount of claims paid categorically by the cost of repair or by the cost of replacement.

            (d) The number of claims denied for failure of the service contract holder to receive prior approval for such repair or replacement.

            B. Each provider of a home service contract sold in this state shall file an application for an initial registration with the secretary of state consisting of his name, address, telephone number, and contact person, designating a person in this state for service of process, and providing a listing of all officers, all directors, and all owners of ten percent or more of the business. Additionally, the provider shall file a copy of its basic organizational documents, including articles of incorporation, articles of organization, articles of association, or a partnership agreement. Each application for registration shall be accompanied by a fee not to exceed six hundred dollars. All fees shall be paid into the secretary of state.

            C. A registration shall be effective for two years, unless the registration is denied, renewed, suspended, or revoked. Ninety days prior to the expiration of a registration, a provider shall submit a renewal application on a form prescribed by the secretary of state and a renewal fee not to exceed two hundred fifty dollars. All fees shall be paid to the secretary of state. The deadline for complying with all requirements for initial registration as described in this Subsection, and for posting a two-year bond in the amount as described in Subsection E of this Section is January fifteenth.

            D. Each registrant shall notify the secretary of state of any material change in the registration information within sixty days of the effective date of such change. The notice shall be accompanied by supporting documentation.

            E. In order to assure the faithful performance of a provider's obligations to its contract holders and to insure its outstanding obligations, each provider shall obtain and file with the secretary of state a surety bond issued by a company licensed to do business in Louisiana in the amount of fifty thousand dollars.

            F. Except for the registration requirements of this Section, providers, administrators, and persons marketing, selling, or offering to sell home service contracts are exempt from any licensing requirements of this state and shall not be subject to other registration information or security requirements.

            G. The marketing, sale, offering for sale, issuance, making, proposing to make, and administration of home service contracts by providers and related service contract sellers, administrators, and other persons is not insurance and shall be exempt from all provisions of the Louisiana Insurance Code.

            Acts 2015, No. 161, §§1, 3(A), eff. Jan. 11, 2015; Acts 2015, No. 161, §§1, 3(B), eff. Jan. 15, 2016.