Louisiana Revised Statutes 22:1722 – Definitions
Terms Used In Louisiana Revised Statutes 22:1722
- Business entity: shall mean a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. See Louisiana Revised Statutes 22:1722
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Individual: shall mean a natural person. See Louisiana Revised Statutes 22:1722
- Insurer: shall mean any authorized insurer as defined in Louisiana Revised Statutes 22:1722
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: shall mean an individual or business entity. See Louisiana Revised Statutes 22:1722
- Reinsurance intermediary: shall mean a reinsurance intermediary-broker or a reinsurance intermediary-manager. See Louisiana Revised Statutes 22:1722
- Reinsurance intermediary-broker: shall mean any person, other than an officer or employee of the ceding insurer, who solicits, negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of such insurer. See Louisiana Revised Statutes 22:1722
- Reinsurance intermediary-manager: shall mean any person who has authority to bind or manages all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department, or underwriting office, and acts as an agent for such reinsurer, whether known as a reinsurance intermediary-manager, manager, or other similar term. See Louisiana Revised Statutes 22:1722
- Reinsurer: shall mean any person duly licensed in this state, pursuant to the applicable provisions of this Code, as an insurer with the authority to assume reinsurance. See Louisiana Revised Statutes 22:1722
As used in this Part:
(1) “Actuary” shall mean a person who is a member in good standing of the American Academy of Actuaries.
(2) “Business entity” shall mean a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.
(3) “Controlling person” shall mean any person who directly or indirectly has the power to direct or cause to be directed, the management, control, or activities of the reinsurance intermediary.
(4) “Individual” shall mean a natural person.
(5) “Insurer” shall mean any authorized insurer as defined in La. Rev. Stat. 22:46.
(6) “Licensed producer” shall mean a person licensed as an insurance producer pursuant to the provisions of Subpart A of Part I of this Chapter, La. Rev. Stat. 22:1541 et seq., or a person licensed as a reinsurance intermediary-broker licensed pursuant to this Part.
(7) “Person” shall mean an individual or business entity.
(8) “Reinsurance intermediary” shall mean a reinsurance intermediary-broker or a reinsurance intermediary-manager.
(9) “Reinsurance intermediary-broker” shall mean any person, other than an officer or employee of the ceding insurer, who solicits, negotiates, or places reinsurance cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind reinsurance on behalf of such insurer.
(10) “Reinsurance intermediary-manager” shall mean any person who has authority to bind or manages all or part of the assumed reinsurance business of a reinsurer, including the management of a separate division, department, or underwriting office, and acts as an agent for such reinsurer, whether known as a reinsurance intermediary-manager, manager, or other similar term. Notwithstanding any previous provision of this Section, the following persons shall not be considered a reinsurance intermediary-manager, with respect to such reinsurer, for the purposes of this Part:
(a) An employee of the reinsurer.
(b) A United States manager of the United States branch of an alien reinsurer.
(c) An underwriting manager which, pursuant to contract, manages all of the reinsurance operations of the reinsurer, is under common control with the reinsurer, subject to the Insurance Holding Company System Regulatory Law, La. Rev. Stat. 22:691.1 et seq., and whose compensation is not based on the volume of premiums written.
(d) The manager of a group, association, pool, or organization of insurers which engage in joint underwriting or joint reinsurance and who are subject to examination by the state in which the manager’s principal business office is located.
(11) “Reinsurer” shall mean any person duly licensed in this state, pursuant to the applicable provisions of this Code, as an insurer with the authority to assume reinsurance.
(12) “Qualified United States financial institution” shall, for purposes of this Part, mean an institution that:
(a) Is organized or licensed under the laws of the United States or any state thereof.
(b) Is regulated, supervised, and examined by federal or state authorities having regulatory authority over banks and trust companies.
(c) Has been determined by either the commissioner of insurance or the Securities Valuation Office of the National Association of Insurance Commissioners to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner.
(13) “To be in violation” shall mean that the reinsurance intermediary, insurer, or reinsurer for whom the reinsurance intermediary was acting failed to substantially comply with the provisions of this Part.
Acts 1992, No. 811, §1; Redesignated from La. Rev. Stat. 22:1210.21 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2011, No. 94, §1, eff. Jan. 1, 2012; Acts 2022, No. 161, §1.