AI-assisted research summary: An MGA may not operate in the covered ways unless the person is properly licensed and registered, and the commissioner can require a bond, annual notice, and a small fine for missing information.
§1623. Licensure; registration A. A person shall not act in the capacity of an MGA with respect to risks located in this state for an insurer licensed in this state unless such person is a licensed producer in this state. B. A person shall not act in the capacity of an MGA representing an insurer domiciled in this state with respect to risks located outside of this state unless such person is licensed as a resident or nonresident producer in this state pursuant to the provisions of this Part. C. The commissioner may require a bond in an amount of ten percent of the MGA annual writings or two hundred fifty thousand dollars, whichever is less, for the protection of the insurer. D. A person shall not act in the capacity of an MGA in this state unless such person has registered his name, current residential address, current mailing address, and current business address with the commissioner, on forms prescribed by the commissioner, together with a fee in the amount set forth in R.S. 22:821. E.(1) A person shall not act in the capacity of an MGA in this state if the person served as an officer, director, or person with direct or indirect control over the selection or appointment of an officer or director through contract, trust, or by operation of law of an insurer doing business in this state and served in that capacity within the two-year period before the date that the insurer became insolvent, unless the person demonstrates that his personal actions and omissions were not a significant contributing cause to the insolvency, as determined by the commissioner. (2) Notwithstanding Paragraph (1) of this Subsection, the commissioner may approve a former officer, director, or person with direct or indirect control over the selection or appointment of an officer or director of an insurer who became insolvent, if at least five years have passed since the date that the insurer became insolvent. F. Each year prior to May first, every MGA shall notify the commissioner of his desire to continue his registration as an MGA on forms prescribed by the commissioner together with a fee in the amount set forth in R.S. 22:821. G. If a person fails to provide any of the information required pursuant to this Section, the commissioner may, after notification by the commissioner to the person by certified mail of such failure, impose a fine not to exceed fifty dollars. H. The commissioner may require the MGA to maintain an errors and omissions insurance policy. Acts 1990, No. 265, §1, eff. midnight Dec. 31, 1991; Acts 1991, No. 736, §1; Acts 1993, No. 189, §1; Acts 1996, 1st Ex. Sess., No. 71, §1, eff. May 10, 1996; Redesignated from R.S. 22:1203 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2011, No. 94, §1, eff. Jan. 1, 2012; Acts 2024, No. 488, §1.