Louisiana Administrative Code › Title 37 - INSURANCE › Part XIII - Regulations › Chapter 121 - Regulation Number 87-Louisiana Citizens Property Insurance Corporation Producer Binding Requirements › Section XIII-12107 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
A. For the purposes
				of Regulation 87, the following terms shall have the meaning or definition as
				indicated herein.
Binding Authority
-the ability of a duly
				  licensed insurance producer, who has adequate errors and omission insurance,
				  and has completed a training course offered by Citizens, to issue a policy of
				  property and casualty insurance in the FAIR Plan and Coastal Plan that imposes
				  liability upon Citizens. A licensed producer must meet all requirements for
				  binding authority set forth in Regulation 87 and must have applied to and have
				  been authorized by Citizens to qualify for binding authority.
Citizens
(when capitalized)-the Louisiana
				  Citizens Property Insurance Corporation, and includes the residual market
				  insurance programs known as the "Coastal Plan" and the "FAIR Plan."
Coastal Plan
-the successor to that program
				  established by Act 35 of the 1970 Regular Session to provide a residual market
				  for adequate insurance on property in the coastal areas of the state, now
				  available as a program of Citizens.
Commissioner
-the Commissioner of Insurance
				  of the Louisiana Department of Insurance.
Department
- the Louisiana Department of
				  Insurance.
E.P.I.C.
-the Citizens policy management and
				  claim computer system or its successor.
FAIR Plan
-the successor to that program
				  established by Act 424 of the 1992 Regular Session, and designated as the "Fair
				  Access to Insurance Requirements Plan" to provide a residual market for
				  adequate insurance on property in the state, now available as a program of
				  Citizens.
Insurance Producer
-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 the
				  Louisiana Insurance Code as "insurance agent" or "agent," or "insurance broker"
				  or "broker," or "insurance solicitor" or "solicitor," or "surplus lines
				  broker."
Louisiana Policy Management System
(LPMS)-
				  Repealed.
Procedural Error
-an error in an insurance
				  application to bind property and casualty coverage with Citizens that does not
				  materially affect the underwriting risk or rise to the level of a material
				  misrepresentation that does not rise to the level of a substantive
				  error.
Producer Subscriber Agreement
-a contractual
				  agreement delineating the terms, provisions and conditions permitting insurance
				  producers and/or producer agencies to bind coverage and write property and
				  casualty insurance issued by Citizens through the FAIR Plan and the Coastal
				  Plan.
Substantive Error
-an error in an application
				  to bind property and casualty insurance coverage with Citizens that materially
				  affects the underwriting risk or rises to the level of a material
				  misrepresentation.
Unlicensed Employee
-a person hired by an
				  insurance producer who performs administrative or clerical duties authorized by
				  such insurance producer relative to an insurance application, but does not
				  possess an insurance producer license and is not authorized to sell, solicit,
				  or negotiate a contract of insurance.
AUTHORITY
				  NOTE: Promulgated in accordance with
				  R.S.
				  22:2313 and the Administrative Procedure Act,
				  R.S.
				  49:950 et
				  seq.