Louisiana Revised Statutes 22:1570.1 – Requirement for professional liability coverage
Terms Used In Louisiana Revised Statutes 22:1570.1
- Insurance: shall mean any of the lines of authority as specified in 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
A.(1) Every insurance producer who is actively writing insurance policies in this state and is subject to the provisions of La. Rev. Stat. 22:1570 shall maintain professional liability insurance or an errors and omissions policy which includes coverage for acts or omissions as a non-captive insurance producer and which policy is for the purpose of providing coverage for the benefit of the insured customers of the producer.
(2) An insurance producer who is duly empowered and authorized to act through or on behalf of another licensed insurance producer in the sale, solicitation, or negotiation of insurance may satisfy the requirements of this Subsection with professional liability coverage provided by the authorizing insurance producer.
B.(1) Every insurance producer who is actively writing insurance policies in this state and is required to be licensed pursuant to La. Rev. Stat. 22:1543 and who sells insurance products for which the premiums are financed, in whole or in part, by an insurance premium finance company as provided for in La. Rev. Stat. 9:3550 shall maintain professional liability insurance or an errors and omissions policy which includes coverage for acts or omissions as an insurance producer and which policy is for the purpose of providing coverage for the benefit of the insured customers of the producer.
(2) An insurance producer who is duly empowered and authorized to act through or on behalf of another licensed insurance producer in the sale, solicitation, or negotiation of insurance may satisfy the requirements of this Subsection with professional liability coverage provided by the authorizing insurance producer.
C. Should any insurance producer who is subject to the provisions of this Section fail to maintain professional liability insurance or an errors and omissions policy as provided in this Section, such failure shall constitute an unfair trade practice as provided for in La. Rev. Stat. 22:1963 and shall subject the insurance producer to the provisions of La. Rev. Stat. 22:1554(A)(6).
D. The provisions of this Section shall not apply to a producer licensed pursuant to La. Rev. Stat. 22:1547(A)(13).
Acts 2017, No. 380, §1.