§ 22:855 — Quoted premium shall include all charges; dollar amount required

Louisiana § 22:855

• Jurisdiction: Louisiana
• Title 22: Insurance

Text

§855. Quoted premium shall include all charges; dollar amount required
A. The premium quoted by the insurer shall be a specific dollar amount which shall
be inclusive of all fees, charges, premiums, or other consideration charged for the insurance
or for the procurement thereof, except that:
(1) In any subsequent modification of the policy, the insurer may require that
evidence of insurability be furnished at the insured's expense.
(2) The premium and premium tax on a surplus lines policy shall be separately stated
on the declaration page.
B.(1) No insurer or its officer, employee, producer, or other representative shall
charge or receive any fee, compensation, or consideration for insurance which is not included
in the premium quoted to the insured and the premium specified in the policy delivered to
the insured, except for the premium tax on a surplus lines policy which shall be separately
stated, and except for reimbursement for expenses due the producer, and except for an
agency fee, if any, as authorized hereunder for all lines of insurance including but not limited
to property insurance, casualty insurance, individual and group health insurance, and
supplemental benefit insurance coverages.
(2)(a) The producer may receive reimbursement from the insured for expenses
incurred by the producer directly related to the insurance coverage for the insured. In
addition, the producer may charge a reasonable agency fee related to the services provided
by the producer. Any reimbursement or agency fee shall be itemized separately on an invoice
statement. A single invoice may be used to make known all charges. Each such charge must
be prominently disclosed and itemized separately on the invoice.
(b) The reimbursement for expense and agency fees shall not be considered premium
for any purpose, nor shall they be subject to premium taxes or surplus lines premium taxes.
Agency fees for criminal bail bond, homeowners insurance, or personal automobile insurance
that are standard risks insurable at standard rates shall not exceed twenty-five dollars.
(c) Expenses or agency fees charged for an individual health insurance policy shall
be disclosed on a separate document which shall be signed by the named insured. The
exclusive remedy for failure to obtain a signed disclosure on an individual health insurance
policy shall be the return of expenses and agency fees.
(d)(i) Any insurer doing business in this state shall accept a current copy of any
motor vehicle report procured by a licensed producer or licensed insurance agency on behalf
of a client in the quoting and underwriting of automobile insurance. The motor vehicle report
shall be deemed current if the report was issued within fifteen days of the requested quote.
(ii) If an insurer chooses to procure a motor vehicle report after having been provided
with a current motor vehicle report by a producer or agency, the insurer shall not pass the
cost on to the producer, agency, client, or insured.
(iii) If an agency or producer does not supply a current motor vehicle report with a
request for a quote, the insurer may procure any necessary motor vehicle report. If the
insurer provides the producer or agency with a current copy of the motor vehicle report, the
insurer may charge the actual cost of the motor vehicle report to the producer or agency
seeking the quote. The producer or agency may charge the client the actual cost of the motor
vehicle report, which shall be in addition to the agency fee authorized pursuant to
Subparagraph (a) of this Paragraph.
(e) The commissioner may promulgate rules to enforce the provisions of this Section.
C. Each policy delivered to the insured shall have the full and accurate dollar amount
of the premium disclosed on the policy, which shall be inclusive of all fees, charges,
premiums, or other consideration charged for the insurance or for the procurement thereof,
except that, in any subsequent modification of the policy, the insurer may require that
evidence of insurability be furnished at the insured's expense, and except that the premium
tax on a surplus lines policy shall be separately stated, and except for reimbursement of
expenses and agency fees as authorized in Paragraph (B)(2) of this Section.
D.(1) Any person who aids, assists in, or procures the preparation of any invoice,
insurance policy or part thereof, or any other document used in the charging of any fee,
compensation, or other consideration, except as provided in Subsections B and C of this
Section, which is not included in the premium quoted by the insurer and in the premium
disclosed on the policy shall be liable to the insured.
(2) In this Subsection, a person who procures the preparation of any document
specified in Paragraph (1) of this Subsection includes a person who knowingly permits the
preparation of such a document to be done or participated in by a subordinate or employee,
whether or not that person directly ordered or caused the subordinate or employee to prepare
the document. It shall not include a person furnishing typing, reproducing, or providing other
clerical or mechanical assistance with respect to a document.
E.(1) Upon making a written finding that an amount in excess of the quoted premium
has been received, the commissioner shall issue a written order to the person who received
the excess amount to refund it to the person who paid it. Such amount shall be paid within
thirty days after the date of the commissioner's order in the matter.
(2) Upon such determination, the person ordered to pay the refund may appeal to the
Nineteenth Judicial District Court after paying to the commissioner a sum equal to one-half
of the assessed refund. The commissioner shall keep any such sum paid in escrow and shall
return it promptly to the payor if he prevails in the court proceeding. Thirty days after the
commissioner's written findings or thirty days after final denial of the appeal, any order of
the commissioner made pursuant to this Section shall be enforceable as a judgment under the
Code of Civil Procedure.
F. Each violation of Subsection B or C of this Section shall be theft and a violation
of R.S. 14:67.
G. The commissioner may assess one or more of the following penalties against any
person who violates the provisions of this Section:
(1) A fine in an amount not greater than five thousand dollars.
(2) A suspension of an insurer's certificate of authority or a producer's license.
(3) A revocation of an insurer's certificate of authority or a producer's license.
H. The provisions of this Section shall apply to all policies except life, annuity, and
reinsurance policies.
NOTE: Former R.S. 22:855 redesignated as R.S. 22:598 by Acts 2008, No.
415, §1, eff. Jan. 1, 2009.

Legislative History

Acts 1988, No. 172, §1, eff. June 29, 1988; Acts 1989, No. 563, §1, eff. Sept. 1, 1989; Acts 1992, No. 1130, §2; Acts 1995, No. 704, §1; Acts 1999, No. 135, §1; Acts 1999, No. 551, §1; Acts 2004, No. 466, §1, eff. Jan. 1, 2005; Redesignated from R.S. 22:627 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2009, No. 317, §1; Acts 2010, No. 375, §1, eff. Jan. 1, 2011; Acts 2013, No. 283, §1, eff. June 14, 2013; Acts 2017, No. 63, §1; Acts 2018, No. 278, §1.