Louisiana Revised Statutes 22:1567 – Producers’ compensation in form of fees; commercial property and casualty insurance; criteria for policyholders
Terms Used In Louisiana Revised Statutes 22:1567
- Contract: A legal written agreement that becomes binding when signed.
- Insurance: shall mean any of the lines of authority as specified in La. See Louisiana Revised Statutes 22:1542
- 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. See Louisiana Revised Statutes 22:1542
- 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". See Louisiana Revised Statutes 22:1542
Notwithstanding any other provision of law to the contrary, an insurance producer may negotiate with both or either a property and casualty insurer or a commercial policyholder, including a governmental entity pursuant to La. Rev. Stat. 42:1123(37)(b), to compensate the insurance producer for the placement of commercial property and casualty insurance coverages by any combination of commissions, fees, or fees in lieu of commissions if the commercial insurance policyholder, including a governmental entity pursuant to La. Rev. Stat. 42:1123(37)(b), meets one of the following criteria:
(1) Has total annual property and casualty insurance premiums in excess of five hundred thousand dollars.
(2) Obtains insurance coverage with a per occurrence or per claim deductible or self-insured retention of fifty thousand dollars or more for workers’ compensation, general liability, or automobile insurance coverages.
(3) Has a net worth in excess of twenty-five million dollars.
(4) Qualifies as a self-insurer with the state of Louisiana.
(5) Is a governmental entity that had a contract prior to August 9, 2010, with an insurance producer on a stipulated fee basis for the placement of commercial property and casualty insurance coverages.
Acts 2011, No. 9, §1.