§1542. Definitions
As used in this Subpart, unless the context requires otherwise, the following
definitions apply:
(1)"Authorized insurer" shall have the same definition as set forth in R.S. 22:46.
(2)"Business entity" shall mean a corporation, association, partnership, limited
liability company, limited liability partnership, or other legal entity.
(3)"Commission" shall mean a fee paid to an insurance producer as a percentage of
the premium generated by a sold insurance policy, or direct compensation or reward of a
producer when the same is calculated as a flat fee or as a percentage of the premium or on
the profit to the principal.
(4)"Home state" shall mean the District of Columbia or any state or territory of the
United States in which an insurance producer maintains a principal p
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§1542. Definitions
As used in this Subpart, unless the context requires otherwise, the following
definitions apply:
(1) "Authorized insurer" shall have the same definition as set forth in R.S. 22:46.
(2) "Business entity" shall mean a corporation, association, partnership, limited
liability company, limited liability partnership, or other legal entity.
(3) "Commission" shall mean a fee paid to an insurance producer as a percentage of
the premium generated by a sold insurance policy, or direct compensation or reward of a
producer when the same is calculated as a flat fee or as a percentage of the premium or on
the profit to the principal.
(4) "Home state" shall mean the District of Columbia or any state or territory of the
United States in which an insurance producer maintains a principal place of residence or
principal place of business and is licensed to act as an insurance producer.
(5) "Insurance" shall mean any of the lines of authority as specified in R.S. 22:1547.
(6) "Insurance producer" or "producer" shall mean a person required to be licensed
under the laws of this state to sell, solicit, or negotiate insurance, and includes all persons
or business entities otherwise referred to in this Code as "insurance agent" or "agent", or
"insurance broker" or "broker", or "insurance solicitor" or "solicitor", or "surplus lines
broker".
(7) "Insurer" shall have the same definition as set forth in R.S. 22:46.
(8) "License" shall mean a document issued by this state's commissioner of insurance
authorizing a person to act as an insurance producer for the lines of authority specified in the
document. The license itself does not create any authority, actual, apparent, or inherent, in
the holder to represent or commit an insurance carrier.
(9) "Limited line credit insurance" includes credit life, as defined in R.S. 22:47 and
R.S. 6:969.6, credit disability, credit property, credit unemployment, involuntary
unemployment, mortgage life, mortgage guaranty, or mortgage disability insurance, and any
other form of insurance offered in connection with an extension of credit that is limited to
partially or wholly extinguishing that credit obligation that the commissioner of insurance
determines should be designated a form of limited line credit insurance.
(10) "Limited line credit insurance producer" shall mean an insurance producer who
sells, solicits, or negotiates one or more forms of limited line credit insurance coverage to
individuals through a master, corporate, group, or individual policy.
(11) "Limited lines insurance" is any authority granted by the commissioner of
insurance which restricts the authority of the licensee to less than the total authority
prescribed in the associated major lines pursuant to R.S. 22:1547(A)(1) through (6).
(12) "Limited lines producer" shall mean an insurance producer authorized by the
commissioner of insurance to sell, solicit, or negotiate limited lines insurance.
(13) "NAIC" shall mean the National Association of Insurance Commissioners or
its successor.
(14) "Negotiate" shall mean to confer directly with or to offer advice directly to a
purchaser, certificate holder, or enrollee, or prospective purchaser, certificate holder, or
enrollee, of a particular contract of insurance, including certificates, riders, endorsements,
or amendments, concerning any of the benefits, terms, or conditions of the contract if the
person engaged in that act is an insurance producer who either sells insurance or obtains
insurance from insurers for purchasers, certificate holders, or enrollees.
(15) "Person" shall mean any natural or artificial legal entity including but not
limited to individuals, partnerships, associations, trusts, or corporations.
(16) "Sell" shall mean to exchange a contract of insurance by any means, for money
or its equivalent, on behalf of an insurer.
(17) "Solicit" shall mean to attempt to sell insurance or to ask or urge a person to
apply for a particular kind of insurance from a particular insurer.
(18) "Surplus lines broker" shall mean an insurance producer who solicits,
negotiates, or procures a policy with a surplus lines insurer. All transactions entered into
under such license shall be subject to R.S. 22:431 et seq.
(19) "Terminate" shall mean to cancel the relationship between an insurance
producer and the insurer or the termination of a producer's authority to transact insurance.
(20) "Travel insurance" shall mean that line of insurance defined in R.S.
22:1782.1(3).
(21) "Uniform application" shall mean the current version of the NAIC Uniform
Application for resident and nonresident producer licensing.
(22) "Uniform Business Entity Application" shall mean the current version of the
NAIC Uniform Business Entity Application for resident and nonresident business entities.