This bill amends and reenacts several sections of Louisiana's insurance law, specifically focusing on the regulations surrounding managing general agents (MGAs). Key changes include the requirement that no person may act as an MGA unless they are a licensed producer in the state, and it introduces new provisions regarding the financial responsibilities and reporting obligations of MGAs. Notably, the bill mandates that MGAs submit quarterly account reports to insurers detailing premiums, losses, management fees, and other expenses. Additionally, it establishes criteria for when MGAs must notify the Department of Insurance about significant financial issues, such as overdue balances or changes in their 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 the examination expenses and provides the commissioner with the power to adopt necessary rules and regulations to enforce these provisions. Overall, the legislation aims to enhance oversight and accountability of MGAs in Louisiana's insurance market, ensuring that they operate within a framework that protects both insurers and policyholders.

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