Louisiana to Insurance Producers: You Must Have a License to Do Business in State

Louisiana insurance regulators issued a new advisory reminding people who sell insurance in the state that they must have a licensed to do so.

According to the Louisiana Department of Insurance Advisory Letter 2021-05, “only duly licensed insurance producers are authorized to sell, solicit, make an application for, procure, negotiate for, or place for others, insurance coverage in Louisiana as required by the Louisiana Insurance Code (Title 22 of the Louisiana Revised Statutes).”

LDI said it issued the advisory letter “for the purpose of providing industry guidance and strict instruction.” It reminds the industry that licensed producers have the “exclusive responsibility” for “determining coverage types and levels and potential endorsement options.”

Additionally, the advisory letter states: “Such acts may not be performed by any person who is not licensed as a producer, regardless of whether the unlicensed individual is involved in one or more non-insurance related aspects that may influence the insurance procurement process. Furthermore, a producer who knowingly accepts insurance business from a person who is not licensed as a producer but actually performing the functions of solicitation, negotiation, sale and/or making of applications may be subject to regulatory action pursuant to La. R.S. 22:1554(A)(11 ).”

Source: LDI

Topics Louisiana