Louisiana Administrative Code › Title 37 - INSURANCE › Part XIII - Regulations › Chapter 121 - Regulation Number 87-Louisiana Citizens Property Insurance Corporation Producer Binding Requirements › Section XIII-12125 - Suspension and Termination of Binding Authority

Current through Register Vol. 50, No. 6, June 20, 2024
A. Citizens has the authority to suspend or
				terminate the binding authority privileges of an insurance producer if Citizens
				determines that the insurance producer has failed to adhere to proper
				underwriting and binding procedures that have been established by
				Citizens.
B. An insurance producer
				who demonstrates a consistent practice of submitting multiple procedural errors
				on applications to bind coverage with Citizens may have his binding authority
				privileges suspended for a period of not more than 12 months and until such
				time as Citizens has determined that the subject insurance producer has taken
				the actions required by Citizens to rectify the procedural errors.
C. An insurance producer who, during a 12
				month period, commits a substantive error in five or more applications to bind
				coverage with Citizens may have his binding authority privileges suspended for
				a period of not more than 12 months and until such time as Citizens has
				determined that the subject insurance producer has taken the actions required
				by Citizens to rectify the substantive errors.
D. An unlicensed employee who demonstrates a
				consistent pattern of submitting procedural errors or substantive errors on
				applications to bind coverage with Citizens may be denied the right to access
				the E.P.I.C. system on behalf of the insurance producer until such time as
				Citizens has determined that the subject unlicensed employee has taken the
				actions required by Citizens to rectify the errors. The insurance producer, and
				if applicable an insurance agency, who is responsible for the unlicensed
				employee who has been sanctioned herein shall be subject to suspension or
				termination of the binding authority privileges as deemed appropriate by
				Citizens pursuant to the guidelines set forth in Subsections B, C, E and
				F.
E. An insurance agency, whose
				producers and/or unlicensed employees, demonstrate a consistent practice of
				submitting applications to bind coverage with Citizens that contain substantive
				errors that materially affect the underwriting risk of any contract of property
				and casualty insurance issued, or to be issued, by Citizens may have all
				binding authority privileges terminated for a period of not more than 12 months
				and until such time as Citizens has determined that the subject insurance
				producer has taken the actions required by Citizens to rectify the substantive
				errors. After the expiration of the termination period, the insurance producer
				may apply for reinstatement. Reinstatement shall be at the sole discretion of
				Citizens and may be subject to any additional training or educational
				requirements imposed by Citizens.
F. An insurance producer who has been
				determined by Citizens to have knowingly or intentionally engaged in fraudulent
				conduct or committed an act of fraud in or relative to an application to bind
				coverage with Citizens shall have all binding authority privileges terminated
				and shall not be eligible for reinstatement.
AUTHORITY
				  NOTE: Promulgated in accordance with
				  R.S.
				  22:2313 and the Administrative Procedure Act,
				  R.S.
				  49:950 et
				  seq.