LOUISIANA INSURANCE REGULATION
LESSON 1 WITH ALL CORRECT & VERIFIED
ANSWERS
Objectives:
◦ List requirements of obtaining and maintaining a Louisiana Insurance License
◦ Recognize Louisiana laws governing the business of insurance
◦ Name important Federal laws that apply to insurance producers and insurers
◦ Recognize statutory time limits and dollar amounts from Louisiana Insurance Code
This topic is 24% of the 150 questions on the P&C Exam Correct answer-Key Terms:
Producer
Certificate of Authority
Controlled Business
Cease & Desist
Rebates
Investigative Consumer Report
Reciprocal
Non-Resident
This topic is 24% of the 150 questions on the P&C Exam
In the Louisiana Insurance Code, all persons or business entities referred to as an agent, broker,
solicitor, or surplus lines broker that sell, solicit, or negotiate insurance are required to be licensed as
an ____________________ Correct answer-insurance producer
Individual Producer Correct answer-a person licensed to quote insurance policies, market, and sell
insurance products, and consult other with regard to insurance.
-- Most people in Louisiana are accustomed to calling these persons insurance agents, but the official
term insurance producers
Individual Insurance Producer Requirements: (5) Correct answer-1. Be at least 18 year of age
2. Reside in or work mainly from an office located in State
3. Complete Pre-licensing education required to prepare for state exam*
4. Paid their fees and submitted an application (Form 1546A)
5. Successfully pass their required exam with 70% or higher*
*An exam is required for licenses to sell most lines of insurance, and the exams are specific to the
lines of authority requested (e.g. life, health, property, casualty, etc.)
Examples of Legal Business Entities Correct answer-Corporation, partnership, limited liability
company (LLC), etc.
Business Entity Producer Correct answer-A legal business entity may also be a producer and
conduce insurance business in the state
a. must have producer's license in business name
, b. business must first have a licensed individual producer
c. have several other pieces of documentation required to apply (Form 1546B)
License Expiration P&C Correct answer-Every 2 years odd numbered years (2013, 2015) by the last
day of your birth month
License Expiration LH&A Correct answer-Every 2 years even numbered years (2014, 2016) by the
last day of your birth month
License Term and Renewal Correct answer-every licensee must...
- complete certain number of hours in continuing education
- maintain satisfactory conduct
- send in renewal app and fees every renewal term
*Your license is only issued once and you must renew it every term to keep it active
The final approval to renew your license rests with the ______________, as he decides to renew or
not to renew. Correct answer-Commissioner
License Renewal Correct answer-renew by sending in application and fee to La. Dept of Insurance
by the last day of their own birth month
License Renewal Fee Correct answer-$50
The ____________ has a standard set of exemptions for licensing requirements that most state
follow. Generally, if someone solicits insurance, they do need a license. Correct answer-Producer
Licensing Model Act
Change of Address Correct answer-If a producer changes their mailing, work, or home address, the
Department must be notified within 10 days or face a $50 fine
((notify on an official "Change of Address" form available on the Louisiana Department of Insurance
website))
Non-Resident Correct answer-Individuals not living in Louisiana and those without an office in
Louisiana may get a license to sell insurance in Louisiana.
States that have ____________, meaning that the laws in both states are similar, will grant a non-
resident license to an applicant as long as that individual's resident license is in good standing with
their home state. Correct answer-reciprocal laws and privileges
To apply for a Non-Resident license, an individual must: Correct answer-completes a Uniform
Application approved by the National Association of Insurance Commissioners (NAIC), the
organization in charge of insurance laws for all states, and pay their fees.
A producer moving from one state to another has ______ after establishing legal residence to
become a resident licensee. They will generally be exempt from having to take a new course or exam
if they were in good standing in their home state with an insurance license for the same line(s) of
authority they are applying for and the application is received within the ____ days of the
cancellation of their previous license. Correct answer-90 days
LESSON 1 WITH ALL CORRECT & VERIFIED
ANSWERS
Objectives:
◦ List requirements of obtaining and maintaining a Louisiana Insurance License
◦ Recognize Louisiana laws governing the business of insurance
◦ Name important Federal laws that apply to insurance producers and insurers
◦ Recognize statutory time limits and dollar amounts from Louisiana Insurance Code
This topic is 24% of the 150 questions on the P&C Exam Correct answer-Key Terms:
Producer
Certificate of Authority
Controlled Business
Cease & Desist
Rebates
Investigative Consumer Report
Reciprocal
Non-Resident
This topic is 24% of the 150 questions on the P&C Exam
In the Louisiana Insurance Code, all persons or business entities referred to as an agent, broker,
solicitor, or surplus lines broker that sell, solicit, or negotiate insurance are required to be licensed as
an ____________________ Correct answer-insurance producer
Individual Producer Correct answer-a person licensed to quote insurance policies, market, and sell
insurance products, and consult other with regard to insurance.
-- Most people in Louisiana are accustomed to calling these persons insurance agents, but the official
term insurance producers
Individual Insurance Producer Requirements: (5) Correct answer-1. Be at least 18 year of age
2. Reside in or work mainly from an office located in State
3. Complete Pre-licensing education required to prepare for state exam*
4. Paid their fees and submitted an application (Form 1546A)
5. Successfully pass their required exam with 70% or higher*
*An exam is required for licenses to sell most lines of insurance, and the exams are specific to the
lines of authority requested (e.g. life, health, property, casualty, etc.)
Examples of Legal Business Entities Correct answer-Corporation, partnership, limited liability
company (LLC), etc.
Business Entity Producer Correct answer-A legal business entity may also be a producer and
conduce insurance business in the state
a. must have producer's license in business name
, b. business must first have a licensed individual producer
c. have several other pieces of documentation required to apply (Form 1546B)
License Expiration P&C Correct answer-Every 2 years odd numbered years (2013, 2015) by the last
day of your birth month
License Expiration LH&A Correct answer-Every 2 years even numbered years (2014, 2016) by the
last day of your birth month
License Term and Renewal Correct answer-every licensee must...
- complete certain number of hours in continuing education
- maintain satisfactory conduct
- send in renewal app and fees every renewal term
*Your license is only issued once and you must renew it every term to keep it active
The final approval to renew your license rests with the ______________, as he decides to renew or
not to renew. Correct answer-Commissioner
License Renewal Correct answer-renew by sending in application and fee to La. Dept of Insurance
by the last day of their own birth month
License Renewal Fee Correct answer-$50
The ____________ has a standard set of exemptions for licensing requirements that most state
follow. Generally, if someone solicits insurance, they do need a license. Correct answer-Producer
Licensing Model Act
Change of Address Correct answer-If a producer changes their mailing, work, or home address, the
Department must be notified within 10 days or face a $50 fine
((notify on an official "Change of Address" form available on the Louisiana Department of Insurance
website))
Non-Resident Correct answer-Individuals not living in Louisiana and those without an office in
Louisiana may get a license to sell insurance in Louisiana.
States that have ____________, meaning that the laws in both states are similar, will grant a non-
resident license to an applicant as long as that individual's resident license is in good standing with
their home state. Correct answer-reciprocal laws and privileges
To apply for a Non-Resident license, an individual must: Correct answer-completes a Uniform
Application approved by the National Association of Insurance Commissioners (NAIC), the
organization in charge of insurance laws for all states, and pay their fees.
A producer moving from one state to another has ______ after establishing legal residence to
become a resident licensee. They will generally be exempt from having to take a new course or exam
if they were in good standing in their home state with an insurance license for the same line(s) of
authority they are applying for and the application is received within the ____ days of the
cancellation of their previous license. Correct answer-90 days
