§1651. Licensure required
A. No person shall act as, or offer to act as, or hold himself out to be an administrator
in this state without a valid license as an administrator issued by the commissioner. The
commissioner may impose a fine of five thousand dollars per violation against any person
who acts as an administrator without a valid license, and each day shall be considered a
separate violation.
B. Applicants under this Section shall pay a licensing fee in an amount set forth in
R.S. 22:821 and shall make an application to the commissioner upon a form to be furnished
by the commissioner. The application shall include or be accompanied by the following
information and documents:
(1)All basic organizational documents of the administrator, including any articles
of incorporation, articl
Free access — add to your briefcase to read the full text and ask questions with AI
§1651. Licensure required
A. No person shall act as, or offer to act as, or hold himself out to be an administrator
in this state without a valid license as an administrator issued by the commissioner. The
commissioner may impose a fine of five thousand dollars per violation against any person
who acts as an administrator without a valid license, and each day shall be considered a
separate violation.
B. Applicants under this Section shall pay a licensing fee in an amount set forth in
R.S. 22:821 and shall make an application to the commissioner upon a form to be furnished
by the commissioner. The application shall include or be accompanied by the following
information and documents:
(1) All basic organizational documents of the administrator, including any articles
of incorporation, articles of association, partnership agreement, trade name certificate, trust
agreement, shareholder agreement, and other applicable documents and all amendments to
such documents.
(2) The bylaws, rules, regulations, or similar documents regulating the internal
affairs of the administrator.
(3) The names, addresses, official positions, and professional qualifications of the
individuals who are responsible for the conduct of affairs of the administrator, including all
members of the board of directors, board of trustees, executive committee or other governing
board or committee, the principal officers in the case of a corporation or the partners or
members in the case of a partnership or association, shareholders holding directly or
indirectly ten percent or more of the voting securities of the administrator, and any other
person who exercises control or influence over the affairs of the administrator.
(4) An affidavit signed by the president or other authorized officer stating that the
administrator has available for inspection by the commissioner, its latest financial statement.
(5) The applicant shall submit summary information concerning its business
organization and employees sufficient to fulfill the requirements of this Part.
(6) If the applicant will be managing the solicitation of new or renewal business,
proof that it employs or has contracted with an insurance producer licensed by this state for
solicitation and taking of applications. Any applicant who intends to directly solicit
insurance contracts or to otherwise act as an insurance producer shall provide proof that he
has a license as an insurance producer in this state.
(7) Such other pertinent information as may be required by the commissioner.
C. The applicant shall make available for inspection by the commissioner copies of
all contracts with insurers or other persons utilizing the services of the administrator.
D. The commissioner may refuse to issue a license if the commissioner determines
that the administrator, or any individual responsible for the conduct of affairs of the
administrator as defined in this Part, is not competent, trustworthy, financially responsible
or of good personal and business reputation, or has had an insurance or an administrator
license denied or revoked for cause by any state.
E. A license issued under this Section shall remain valid, unless surrendered,
suspended, or revoked by the commissioner, for so long as the administrator continues in
business in this state and remains in compliance with this Part.
F. An administrator is not required to hold a license as an administrator in this state
if the administrator is an insurer which is authorized to transact the business of insurance in
this state or if all of the following conditions are met:
(1) The administrator has its principal place of business in another state.
(2) The administrator is not soliciting business as an administrator in this state.
(3) In the case of any group policy or plan of insurance serviced by the administrator,
fewer than one hundred certificate holders reside in this state.
G. Repealed by Acts 2009, No. 99, §2.
H. A licensed administrator shall notify the commissioner of any material change in
fact or circumstance affecting its qualification for a license in this state within sixty days of
the effective date of the change. The notice shall include any documentation as the
commissioner may require. Changes in fact or circumstances shall include:
(1) Changes in control.
(2) Amendments to the articles of incorporation.
(3) Changes in officers and directors.
(4) Merger or consolidation of the administrator with any other person or entity.
(5) Entering into any contract with an insurer where residents of this state are
included.
(6) Use of a trade name in this state.
I.(1) A licensed administrator shall maintain and keep in full force and effect a surety
bond in an amount of one hundred thousand dollars issued by an authorized surety company
doing business in this state, or deposit with the commissioner a safekeeping or trust receipt
from a bank doing business in the state or from a savings and loan association chartered to
do business in this state indicating that the administrator has deposited one hundred thousand
dollars in money, or bonds of the United States, the state of Louisiana, or any political
subdivision thereof of the par value of one hundred thousand dollars. The surety bond or the
money or the securities shall be held in trust for the benefit and protection of and as security
for all policyholders of the insurer and participants of the plan with whom the administrator
contracts. The provisions of this Paragraph shall not apply to administrators required to post
a surety bond in accordance with the provisions of R.S. 23:1196(C), in providing services
for a group self-insurance fund for workers' compensation insurance.
(2) No bond shall be required by the commissioner for any administrator whose
business is restricted solely to benefit plans which are either fully insured by an authorized
insurer or which are bona fide employee benefit plans established by an employer or any
employee organization, or both, for which the insurance laws of this state are preempted by
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.).
(3) If the provisions of this Subsection are met with a surety bond, the administrator
shall provide annually to the commissioner evidence that the surety bond continues in full
force and effect. This notice shall be provided no less than ten days prior to the expiration
or anniversary date of the surety bond.
J.(1) Notwithstanding any provision of law to the contrary, an insurer or pharmacy
benefit manager shall not require any license, accreditation, affiliation, or registration other
than those required by federal or state government. Any contract provision in conflict with
this Subsection shall be severable from the contract, considered null and void, and not
enforceable in this state.
(2) If any insurer or pharmacy benefit manager denies the jurisdiction, regulatory,
or licensing authority of the Department of Insurance, the attorney general shall have
authority to enforce any provisions of this Subsection, as well as subjecting the insurer or
pharmacy benefit manager to the provisions of R.S. 51:1401 et seq.