§ 22:1549 — Specialty limited lines credit insurance

§1549. Specialty limited lines credit insurance
A.(1) A licensed insurance producer or limited line credit insurance producer may
be issued a specialty limited lines credit insurance producer license pursuant to the provisions
of this Section.
(2) No producer shall sell, solicit, or negotiate credit life, credit health and accident,
or credit property and casualty insurance pursuant to a specialty limited lines credit insurance
producer license other than (i) in connection with retail sales transactions not exceeding ten
thousand dollars per retail sales transaction; (ii) in connection with retail sales of motor
vehicles wherein the transaction exceeds ten thousand dollars as provided in rules and
regulations promulgated by the commissioner of insurance; or (iii) as provided by rules and
regulations adopted by the commissioner of insurance.
(3) All insurance written pursuant to a specialty limited lines credit insurance
producer license shall be insured by a domestic insurer or foreign or alien insurer admitted
in this state.
B. For a specialty limited lines credit insurance producer license to be issued
pursuant to this Section, an applicant must submit to the commissioner all of the following:
(1) An application, submitted in a manner prescribed by the commissioner of
insurance, containing such information as prescribed by the commissioner, including
verification that the applicant is currently licensed as an insurance producer or limited line
credit insurance producer.
(2) A list of the physical locations where activities authorized by the specialty limited
lines credit insurance producer license will be conducted.
(3) A list of the employees or representatives of the applicant, as of the date of
application, to be registered pursuant to this Section.
(4) An application fee as set forth in R.S. 22:821.
(5) Upon approval of the application, but prior to issuance of the license, the
applicant shall submit a registration fee as set forth in R.S. 22:821.
C. Following initial issuance of the specialty limited lines credit insurance producer
license, the licensee shall submit an annual renewal application, in a manner prescribed by
the commissioner, along with the fee as set forth in R.S. 22:821.
D. The licensee shall submit, in a manner prescribed by the commissioner, a current
list of employees and representatives for verification by the commissioner every six months,
in addition to the registration fee required by R.S. 22:821 for every employee or
representative not previously registered.
E. A specialty limited lines credit insurance producer license issued pursuant to this
Section authorizes an employee or representative of the license holder to participate in
enrollment of retail sales and credit customers in the types of insurance specified in this
Section without being licensed, if all of the following are true:
(1) The employee or representative operates with permission from and under the
supervision of the license holder.
(2) The employee or representative has been instructed with respect to the
disclosures which may be required to be made to consumers in connection with the sale of
credit insurance.
(3) The employee or representative is not primarily compensated based on the
amount of insurance for which the employee or representative enrolls customers.
F. A specialty limited lines credit insurance producer may not in any manner
advertise, represent, or otherwise hold out any employee or representative of the license
holder as a licensed insurance producer pursuant to another provision of this Subpart, unless
the entity or individual actually holds the applicable license.
G. If a specialty limited lines credit insurance producer violates any provision of this
Subpart, the commissioner of insurance may, in accordance and compliance with R.S.
49:977.3, impose any penalties the commisioner deems necessary or appropriate to enforce
the provisions of this Subpart, including but not limited to placing the license holder on
probation; suspending, revoking, or refusing to renew or reinstate the license; assessing an
administrative penalty against the license holder; suspending the transaction of insurance
business at specific locations where a violation of this Subpart has occurred; or any
combination of penalties authorized by this Subpart.
H. The specialty limited lines credit insurance producer license shall be available
equally to residents and nonresidents; however, if the laws or regulations of any other state
would not permit a specialty limited lines credit insurance producer that is a resident of this
state to obtain a substantially equivalent nonresident license, then residents of that state shall
not be permitted to obtain a specialty limited lines credit insurance producer license as
nonresidents under this Section.
I. Notwithstanding any other provision of this Title, this Section specifically permits
the sale of both group and individual credit insurance, in both single and joint coverages. A
licensee under this Section may receive commissions or other compensation for services
rendered in connection with the sale of credit insurance pursuant to this Section.
J. The commissioner of insurance may, in accordance with state law, adopt
reasonable regulations as are necessary or proper to carry out the purposes of this Subpart.
K. An aggrieved party affected by the commissioner's decision, act, or order may
demand a hearing in accordance with Chapter 12 of this Title, R.S. 22:2191 et seq.

Legislative History

Acts 2001, No. 170, §1; Acts 2003, No. 933, §1; Acts 2003, No. 1224, §1; Redesignated from R.S. 22:1138.1 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 317, §1; Acts 2011, No. 94, §1, eff. Jan. 1, 2012.