§ 22:1808.12 — Prohibited acts

Louisiana § 22:1808.12

• Jurisdiction: Louisiana
• Title 22: Insurance

Text

§1808.12. Prohibited acts
A.(1) No person licensed and acting as an insurance consultant under a written
agreement pursuant to R.S. 22:1808.11, shall sell, solicit, make an application for, procure,
negotiate for, or place for others, any policies for any lines of insurance.
(2) No insurer or insurance producer shall pay any money or commission or
brokerage, or give or allow any valuable consideration or compensation to any person or
business entity duly licensed and acting as an insurance consultant under a written agreement
pursuant to R.S. 22:1808.11.
(3) A consultant who is also licensed as an insurance producer shall not, when
representing himself as an insurance consultant under a written agreement pursuant to R.S.
22:1808.11, solicit, sell, or negotiate contracts of insurance or otherwise act as an insurance
producer, and shall not receive directly or indirectly from an insurance company, broker, or
insurance producer any money or commission or brokerage, or give or allow any valuable
consideration or compensation for the solicitation, negotiation, application, sale or placement
of insurance coverages which were the subject of a written consulting contract as required
by R.S. 22:1808.11 during the term of the written consulting contract.
(4) An insurance producer who has a financial or business interest or affiliation with
an insurance consultant acting as a consultant under a written contract as required by R.S.
22:1808.11, shall not solicit, negotiate or sell insurance, either directly or indirectly, with
respect to the insurance risks of the insured or prospective insured which were the subject
of the consulting contract during the term of the written consulting contract.
(5) An insurance consultant shall not have a direct or indirect financial interest in any
aspect of their consulting work, other than the consulting fee compensation established in the
written contract with the insured.
(6) An insurance consultant shall not solicit employment or engagement, directly or
indirectly, for or on behalf of any insurance producer, attorney at law, contractor, or other
person with which the insurance consultant has a business relationship or financial interest.
Nothing in this Part shall be interpreted to prevent an insurance consultant from
recommending a particular insurance producer, attorney, contractor, or other person;
however, the insurance consultant is prohibited from collecting any fee, compensation, or
other valuable consideration for such referral.
(7) An insurance consultant shall not engage in the unauthorized practice of law as
defined in R.S. 37:212 and 213.
B.(1) Whoever violates this Section shall, upon conviction, be fined not less than two
thousand dollars, nor more than fifty thousand dollars, or imprisoned with or without hard
labor, for not more than three years, or both.
(2) Any conviction for violation of this Section shall constitute grounds for the
immediate suspension or revocation by the commissioner of insurance of the license of such
insurance consultant to sell insurance, in addition to those grounds set forth in R.S.
22:1808.8.
C. Nothing in this Section shall prohibit an insurance producer from receiving
reimbursement of expenses or an agency fee for services provided as the producer of record
as authorized pursuant to R.S. 22:855(B).

Legislative History

Acts 2016, No. 312, §1.