This bill amends and reenacts several sections of Louisiana's insurance law, specifically focusing on the regulation of managing general agents (MGAs). Key changes include the requirement that individuals must be licensed producers in Louisiana to act as MGAs for insurers licensed in the state, and it introduces new provisions regarding the financial responsibilities and reporting obligations of MGAs. Notably, MGAs must now submit quarterly account reports to insurers detailing premiums, losses, management fees, and other expenses. Additionally, the bill establishes criteria for when MGAs must notify the Department of Insurance about significant financial events, such as overdue balances or changes in authority to settle claims.

The bill also introduces new sections that outline the duties of MGAs and the authority of the commissioner to conduct financial examinations of MGAs. It specifies that MGAs must pay for examination expenses and mandates that they maintain certain financial records. Furthermore, the commissioner is granted the authority to promulgate rules and regulations to ensure compliance with these provisions. Overall, the bill aims to enhance oversight and accountability of MGAs in Louisiana's insurance market.

Statutes affected:
HB672 Original:
HB672 Engrossed:
HB672 Reengrossed: 22:1625(A)
HB672 Enrolled: 22:1625(A)
HB672 Act : 22:1625(A)