LOU LEG Insurance General Agents

On May 23, LOU LEG enacted bill regarding insurance general agents.

  • LOU LEG enacted Bill HB 672 re managing general agents to amend LOU LEG 22:1623, LOU LEG 22:1625(A), LOU LEG 22:1626, add LOU LEG 22:1628, LOU LEG 22:1629.
  • Document dated May 23, 2024, received from LOU LEG Jun. 6, summarized Jun. 10.
  • Managing General Agents
  • Makes changes regarding managing general agents (MGA), and financial examinations.
  • No person will act as MGA if person served as officer, director, or person with control over selection of officer/director, unless they show no affiliation to the insolvency.
  • Commissioner may approve a former officer, director, or person with control over the selection/appointment if at least 5 years have passed since insurer became insolvent.
  • Allows insurer to provide financial data to Commissioner, file audited financial report of each MGA if insurer has an MGA who writes more than 5% of its policyholder surplus.
  • An MGA will submit to an examination by the commissioner of the MGA's financial condition, pay the examination expenses in an amount the commissioner certifies.
  • Once per quarter, an MGA will submit a report to each insurer with whom the MGA has a contract, and within 30 days, will notify department of certain balance changes.
  • Legislative History
  • On Mar. 11, 2024, bill introduced in House; on Apr. 10, 2024, bill was passed in House.
  • On Apr. 15, 2024, bill delivered to Senate; on May 16, 2024, bill was passed in Senate.
  • On May 23, 2024, bill signed by governor and became Act 488, effective Aug. 1, 2024.
  • Effectiveness
  • Act becomes effective as of Aug. 1, 2024.

Regulators LOU LEG
Entity Types IB; Ins
Reference Act 488, Bill HB672, 5/23/2024; Citation: *LOU LEG* 22, 22:1623, 22:1625, 22:1626;
Functions Audit; Compliance; C-Suite; Exams; Financial; Legal; Reporting
Countries United States of America
Products Insurance; Payments
Regions Am
Rule Type Final
Rule Date 5/23/2024
Effective Date 8/1/2024
Rule Id 215065
Linked to N/A
Reg. Last Update 5/23/2024
Report Section US Insurance

Last substantive update on 06/11/2024