Frequently Asked Questions for
Market Conduct
Please review the Frequently Asked Questions already submitted and answered for
this division. If you require further assistance, you may elect to submit a new
question to this division staff.
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Begin FAQs
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How are records to be maintained?
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LRS 22:39 A (redesignated to LRS 22:68 A) states: :....Such insurer may cause any or all such books, records, documents, accounts, and vouchers to be photographed or reproduced on film. Any such photographs, microphotographs, optical imaging, or film reproductions of any original books, records, documents, accounts, and vouchers shall for all purposes be considered the same as the originals thereof and a transcript, exemplification, or certified copy of any such photograph, microphotograph, optical imaging, or film reproduction shall for all purposes be deemed to be a transcript, exemplification, or certified copy of the original. Any original so reproduced may thereafter be disposed of or destroyed, as provided for in Subsection B of this Section, if provision is made for preserving and examining such reproductions."
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Does Louisiana require insurers to maintain a hard copy of a producer's license in their file for Market Conduct Examinations?
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No. We accept current PDB printouts in lieu of maintaining a hard copy of the producer's license.
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Can a company pay commissions to an unappointed agent?
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LRS 22:1144 C (redesignated to LRS 22:1558 C) states: "Any insurance producer, unless otherwise prohibited by contract, licensed in this state, may solicit, negotiate, or effect applications for policies of insurance with any insurer lawfully doing business in this state, other than an insurer such producer is licensed to represent, if such producer is under contract with such insurer. However, no commissions shall be paid by such company to the producer until such time as notice of recordation of the appointment with respect to such producer has been received by the producer from the commissioner."
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How long does an entity (company, producer, etc.) have to retain records? And where in the Insurance Code does it address this?
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LRS 22:39 B (redesignated to LRS 22:68 B) addresses this question. This site states as follows: "All such original books, records, documents, accounts, and vouchers, or such reproductions thereof, of the home office of any domestic company or of any principal United States office of a foreign or alien company located in this state shall be preserved and kept available in this state for the purpose of examination and until authority to destroy or otherwise dispose of such records is secured from the commissioner. At a minimum all such original records shall be maintained for the period commencing on the first day following the last period examined by the commissioner through the subsequent examination period, or three years, whichever is greater. Such original records may, however, be kept and maintained outside this state if, according to a plan adopted by the company's board of directors and approved by the commissioner, it maintains suitable records in lieu thereof."LRS 22:1309 (redesignated to LRS 22:1990) also states: "Every insurer being examined, its officers, employees and representatives, shall produce and make freely accessible to the commissioner of insurance the accounts, records, documents and files in its possession or control relating to the subject of the examination, and shall otherwise facilitate the examination." "LRS 22:1301 (redesignated to LRS 22:1981). Commissioner of insurance to examine insurers, agents, and brokers A.(1) The commissioner of insurance shall make an examination, not less frequently than once every five years, of all insurers doing business in this state at such times as prescribed by the provisions of this Part and at any other time when in the opinion of the commissioner it is necessary for such an examination to be made..." For more information click on: Directive 197
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End FAQs |
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