Louisiana State Insurance Law (CODE)

Overview

The purpose of this chapter is to acquaint students with those state statutes that pertain to insurance and that are included in pre licensing. The primary purpose of licensing is to protect the general public.

License Qualifications

There are four classes of insurance for which a license is required:
1. Life.
2. Accident and health
3. Casualty and allied lines.
4. Property and allied lines.
An agent can’t place any policy of insurance with any insurer that doesn’t maintain an appointment with that insurer.
The notarized application for a license must be accompanied by an appointment with an insurer licensed to do business in the state (fees: $30 for agent and $55 for brokers).
All licensees must complete pre licensing education courses approved by the commissioner.
All licensees must be at least 18 years of age.
An individual who acts or aids in any manner in negotiating contracts of insurance, or in placing risks, or in soliciting contracts of insurance for an insured, other than themselves and not as an appointed agent of an insurer, must be licensed as a broker.
If the commissioner is satisfied that the applicant is qualified, the applicant will be given a written insurance exam in each class of insurance they wish to transact.
1. Applicant must pass the state license test with a score of at least 70%.
2. Applicant must take a separate test for each line of business.
3. Applicant has 6 months from the receipt of the application to pass the test.
4. Commissioner must give written notice to the applicant if they fail the test.
5. If applicant moves after applying for the test, they must notify the commissioner within 30 days.
6. The following are exempt from having to take the test.
  1. Applicant who was licensed in the state for the same lines of business within the last two years. This doesn’t apply to a temporary license or if the applicant’s license was suspended or revoked.
  2. Applicant for a life, accident and health license who is a Chartered Life Underwriter (CLU) and a member in good standing with a local chapter of the American Society of Chartered Life Underwriters.
  3. Applicant for a property and casualty license who is a Chartered Property and Casualty Underwriter (CPCU) and is a member in good standing with the local chapter of the Society of Chartered Property and Casualty Underwriters.
  4. Representative of a fraternal benefit society who negotiates with insurance agents, under conditions determined by the commissioner.
  5. Debit agent who writes only industrial life, health, and accident insurance.
  6. Applicant who will only write credit life or credit health and accident insurance.
  7. Applicant who will only write credit property insurance on which the licensed lender has a security interest.
  8. Ticket selling agent who writes travel accident insurance.
  9. Applicant who will sell only service or membership contracts for an automobile club.

Types of Licensees

Agent – Individuals, whether compensated or not, who solicit, negotiate, procure, renew, or bind insurance coverage in this state. Agents are representatives of the insurer and have fiduciary responsibility when handling premium money.
Broker – A person who, for compensation and on behalf of another person, transacts insurance other than life insurance with, but not on behalf of, an insurance company.
1. Must have a written agreement with an insured if they receive any compensation for services directly from the insured.
2. Agreement is called a brokers service contract. The contract must state the services to be provided and the charge for each, and must be agreed upon in advance of the contract.
3. To be a licensed broker an individual must:
  1. Make application to the commissioner, along with a fee, for a broker license.
  2. Have been licensed as an insurance agent for at least two years or employed by an insurance company for three years.
  3. File a $25,000 bond. The bond is required whether the broker is a resident or nonresident.
Solicitors – Authorized by an agent or broker to solicit insurance on the behalf of the agent or broker.
Nonresidents – May qualify for a nonresident license if they hold a similar resident license in any state, district, or territory of the United States or Canada.
Note: In some cases, the commissioner may issue a temporary license that last for up to 180 days without requiring the applicant to pass a written test.

Maintenance and Duration

Renewal
1. Every property and casualty licensee shall, by April 30th in odd numbered years, renew their license.
2. Each life, health, and accident licensee shall, by April 30th in even numbered years, renew their license.
3. All licensees must pay a renewal fee ($20 for agents, $10 for solicitors, and $65 for brokers) and certify that they have completed the continuing education requirements.
  1. Renewal application is mailed 30 days prior to the renewal filing date.
  2. The applications must be completed must be completed and returned to the DOI before the required filing date ($25 late fee).
4. After a license has lapsed for three years, the license can’t be reinstated. All pre licensing requirements will be required again to receive a new license.
Change of Address – Every licensee must notify the Commissioner with ten days, in writing, of any change in their address. Failure to notify the Commissioner will result in a $50 fine.

Continuing Education

Once an applicant is licensed they must satisfy continuing education requirements.
Every broker, solicitor, and agent licensed to write fire, casualty, or fire and casualty insurance must complete 24 hours of approved instruction before each renewal of license.
Life insurance agents must complete 16 hours of approved instruction prior to each license renewal.
Brokers, solicitors, and agents who hold both a life and health license and a property and casualty license must complete 12 hours of approved life and health instruction and 20 hours of approved property and casualty instruction.
Excess hours of approved instruction can be carried forward to the next renewal period.
The commissioner may waive the requirement for nonresident agents who comply with the continuing education requirement in their state of residence, providing the nonresident’s home state reciprocates.

Disciplinary Actions

Hearings
1. When the commissioner believes a person has committed an unfair trade practice, the commissioner must notify that person of a hearing.
2. Upon conviction the commissioner may fine ($2000 – $50,000), imprison (up to three years), and/or suspend and revoke a person’s license.
Denial of License – The commissioner may deny a license to an applicant by promptly notifying the applicant and the appointing company, in writing, or the reasons including:
1. Failure of the applicant to comply with any of the prerequisite requirements.
2. Failure of the applicant to remit or account for any money that belonged to another.
3. If the applicant went bankrupt while owing premiums or other funds to an insurer or insured.
4. Applicant has issued a bad check to the DOI.
5. Applicant has been convicted and has pleaded no contest to a felony or has participated in a pretrial diversion program in accordance with a felony charge.
6. Applicant has been convicted of a misdemeanor involving moral vileness or public corruption.
7. Activities of fraud, misrepresentation, or dishonest practice or the lack of trustworthiness or competency to transact business in such a manner as to safeguard the public.
8. An insurance license has been denied, suspended or revoked by this or any other state.
9. Applicant is obtaining the license in order to write controlled business (controlled business is insurance written on ones own property, family, or employee that exceeds 25% of premium written).
10. Applicant has violated the insurance laws of this state or any state, or any province of Canada.
11. Attempt to obtain a license through fraud or misrepresentation or cheating on a test for an agent’s, broker’s or solicitor’s license.
Cease and Desist – After a hearing the commissioner may serve a written report to a charged person and may issue any of the following:
1. Order to cease and desist any practice of insurance.
2. Fine up to $1,000 for each act totaling $100,000.
3. Fine up to $25,000 totally and $250,000 in any six month period to those who knowing commits a violation of law.
4. Suspension or revocation of a license.
Suspension and Revocation – A license may be suspended or revoked by the commissioner if, after a hearing, the commissioner finds any of the following:
1. Licensee has made a material misrepresentation or has omitted a material fact.
2. Any reason that the license would not have been issued in the first place.
3. Licensee knowingly violates any insurance law or regulation of this or any other state.
4. Licensee attempts to obtain any other insurance license by misrepresentation or fraud.
5. Licensee improperly withholds, misappropriates, or fails to timely remit premiums and applications.
6. Licensee converts their own use any monies belonging to policyholders, insurers, beneficiaries, claimants, or anyone else in the course of the insurance business.
7. Licensee misrepresents the terms of any insurance contract, binder, rider or plan.
8. Licensee is convicted of a felony, or participates in a pretrial diversion grogram regarding a felony charge, or is convicted of a misdemeanor involving moral turpitude or public corruption.
9. Licensee violates any unfair trade practice.
10. Licensee has shown themselves to be incompetent, untrustworthy, or financially irresponsible.
11. Licensee’s license has been suspended or revoked in another state, province, or territory.
12. Licensee forged another person’s name to an application for insurance.
13. Licensee cheated on a test for any insurance license.
14. Any agent or broker who employs or associates with a convicted felon.

State Regulation

Commissioner of Insurance

The Commissioner is elected by the people of Louisiana for a period of four years.
The Commissioner has the following authority and duties:
1. File and keep all books and papers as required by law.
2. Issue certificates of authority to transact insurance to any companies that have complied with the Louisiana law.
3. Issue, refuse, revoke or suspend licenses or certificates of authority in accordance with the laws of the state.
4. Regulates the internal affairs of the DOI.
5. Aid in the interpretation of any state insurance law.
6. Make certain the insurer rates are adequate, not excessive, or unfairly discriminatory. (The Commissioner doesn’t set rates).
7. Structure and control insolvency procedures.
8. Inquire into all violations of insurance laws in Louisiana, including consumer complaints.
9. Subpoena witnesses and documents for testimony before themselves on any insurance related matter or hearing.
Examination By The Commissioner
1. Has the right to examine and investigate the affairs of every insurer or agent doing business in the state to determine if a violation of this act has occurred.
2. If a violation is found to have occurred, the commissioner must send the insurer a statement of charges and a notice of hearing which sets forth the time and place of a hearing. (The insurer must be given at least 30 days advance notice of the hearing date).
3. During the hearing, the insurer has an opportunity to answer the commissioner’s charges and present evidence on its behalf.
4. The commissioner has the power to subpoena witnesses, administer oaths, examine witnesses and receive oral and documentary evidence. (If, following the hearing, the commissioner finds the insurer has violated a provision of this act, the commissioner must put his findings of fact and conclusions of law in a written report).

Company Regulation

Requirements for Certificate of Authority – In order for an insurer to obtain a certificate of authority, the application must be accompanied by:
1. A statement by the president and secretary of the company that it will abide by the rules and regulations of the state.
2. An appointment of at least one agent.
3. A copy of the organization’s bylaws and identification of the major owners of the company.
4. A copy of a three year contract with a qualified independent auditor that is a member in good standing with either the American Institute of Certified Public Accountants or the Society of Financial Examiners.
5. If the insurer is a property and casualty insurer, an agreement, at least three years in duration, engaging an independent qualified actuary to provide the commissioner with an actuarial analysis of the company’s reserves.
Unfair Claims Settlement Practices – If an insurer commits or performs any of the following with such frequency that it indicates a general business practice it will be construed to be an unfair claim settlement practice:
1. Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue.
2. Failing to acknowledge and act promptly on communications for claims.
3. Failing to adopt and implement reasonable standards for the prompt investigation and settlement of claims.
4. Refusing to pay claims without conducting a reasonable investigation.
5. Failing to affirm or deny coverage of claims within a reasonable time after completed investigation of the claim.
6. Not attempting to make a prompt, fair, and equitable settlement of a claim where liability has become reasonable clear.
7. Compelling insureds to institute litigation to recover under a policy.
8. Attempting to settle a claim for less than the amount due.
9. Attempting to settle a claim on the basis of an application which was altered without notice to, knowledge of, or consent of the insured.
10. Making claims payments to insureds or beneficiaries, not accompanied by a statement indicating the coverage under which payments were made.
11. Unreasonably delaying the investigation or payment of claims by requiring a formal proof-of-loss form and subsequent verification which would result in the duplication of some information.
12. Failing to promptly provide a reasonable and accurate explanation of the basis for denial of a claim or the offer of a compromise settlement.
13. Failing to provide the necessary forms for presenting claims with reasonable explanations of their use within fifteen working days of a request.

Agent Regulation

Unfair Trade Practices Act – The following are defined as unfair methods of competition and unfair of deceptive acts or business practices in the business of insurance:
1. Boycott, Coercion, or Intimidation – Entering into action resulting in an unreasonable restraint of, or monopoly in the business of insurance (making the purchase of insurance from a particular source the condition to another business transaction).
2. Defamation – Making any false oral or written statement that is intended to injure someone in the business of insurance. Example: Saying that another insurance company is in financial trouble.
3. False Information and Advertising – Presenting any information which is false or misleading.
4. Stock Operations and Advisory Board Contracts – Issuing stock/promising returns and profits as an inducement to purchase insurance.
5. Unfair Discrimination – Permitting individuals of the same class and hazard to be charged different rates for the same insurance coverage.
6. Rebating – Offering any rebate, discount of premium, or credit not specified in the policy.
7. Misrepresentation – Making misleading representations of fraudulent comparison of insurance policies, misrepresenting the terms or benefits of an insurance policy or making misleading representations as to the financial condition of any insurer.
8. Twisting – Encouraging a client to lapse a policy to their detriment and replace it with another.
9. Fraud – An unlawful act with the specific intent to deceive or cheat.
Commissions
1. Shared Commissions
  1. No insurer, agent, broker, or solicitor may pay any commission to any person unless they are licensed for that line of insurance.
  2. Only a licensed agent, broker, or solicitor may receive a commission.
  3. There may be a fine of $1,000 – $5,000 for each violation and/or up to two years of prison.
2. Payment to Unlicensed Entities
  1. Insurers, agents, or brokers may not pay commissions to any person or company who isn’t licensed to solicit, negotiate, or affect insurance contracts in Louisiana.
  2. Contracts of reinsurance are exempt.
Use of Trade Names
1. Every agent, broker, or surplus lines broker who wants to solicit business under a trade name must register that name with the Secretary of State & DOI.
2. If the agent, broker, or surplus lines broker uses a non-approved trade name they can be fined up to $250.
3. If the agent, broker, or surplus lines broker continues to use a non approved trade name after being notified by the DOI to cease, they can be fined up to $5000.

Company and Agency Regulation

Examination of Books and Records
1. Whenever the DOI deems it necessary, but at least once every five years, the DOI may make, or direct to be made, an examination of the affairs and financial condition of any insurance company in the process of organization, or applying for admission or doing business in Louisiana.
2. The DOI must also make a timely examination of an insurer when it is requested by the Louisiana Insurance Guaranty Association or the Louisiana Life and Health Insurance Guaranty Association.
3. If the insurer is a newly formed domestic company, the DOI may examine that insurer once every six months for the first three years and once a year for the fourth through sixth years.
4. The DOI may examine any agent or broker doing business in the state whenever the DOI has received at least three complaints within thirty days that the agent or broker is violating the Insurance Code.
5. The insurer examined must provide the DOI, or the DOI’s appointed examiner, free access to all books and papers that relate to the business and the books and papers kept by the company’s agents.
6. Insurance company’s directors, officers, agents, and employees may be examined under oath.
Agent Appointment
1. The appointing company must clarify that the applicant for a license is trustworthy, competent, and has a good business reputation.
2. The appointing company also certifies that the applicant has been or will be instructed in the general insurance business or in the lines of business that they will be writing.
3. All appointments remain in effect until the annual renewal date of April 30th.
4. Solicitors must be appointed by the sponsoring agent, broker, or agency the appointment must designate the lines of insurance that the solicitor is authorized to write.
5. The annual appointment fee is $10.
Termination of Appointment
1. If the company terminates the appointment, the company must notify the DOI and the licensee.
2. All terminations must be filed on forms by the DOI with the explanation of the reasons of termination.
3. The DOI must be notified immediately if the reason for termination was for an unfair trade practice.

Insurance Fraud

There is a section within the DOI that conducts background checks of all applicants for insurance licenses, both agents and companies.
This section will determine if the applicant has engaged in any kind of insurance fraud.
Violators will be guilty of a felony and shall be punished for each violation by a fine up to $5,000 or up to five years imprisonment or both.
Any person who presents a fraudulent claim will be guilty of a felony and will be subject to imprisonment at hard labor for up to five years and/or a fine up to $5,000.
Any agent, broker, adjuster, or company who believes that a fraudulent claim is being made must report it to the fraud section of the DIO within 60 days.
Anyone who, in good faith, reports an incident for investigation to the fraud section shall be immune from liability.

Federal Regulation

Fair Credit Reporting Act

The federal Fair Credit Reporting Act is designed to promote accuracy, fairness, and privacy of information in the files of every “consumer reporting agency” (CRA). A person’s rights include:

A person must be told if information in their file has been used against them.
Upon request, a CRA must give the information on file, and a list of everyone who has requested it recently.
A person can dispute inaccurate information.
Inaccurate information must be corrected or deleted.
Outdated information may not be reported. In most cases, this includes negative information that is more than seven years old; ten years for bankruptcies.
Access to a person’s file is limited to consider an application with a creditor, insurer, employer, landlord, or other business.
A person may choose to exclude their name from lists for unsolicited credit and insurance officers.
A person may seek damages from violators.

Fraud and False Statements

A person commits a fraudulent act when the person:

Knowingly presents (or conceals) material false information that would alter the rating of a policy, a claim for payment, the premiums paid on a policy, an application for Certificate of Authority, the financial condition of the insurer, or the acquisition of an insurer.
Solicits or renews insurance for an insolvent insurer.
Removes the assets or the record pf assets on an insurer.
Diverts or attempts to divert the funds of an insurer.
Note: All claims forms must state the following: “A person who knowingly and with the intent to defraud an insurer files a statement of a claim containing any false, incomplete, or misleading information commits a felony.

Louisiana Laws, Regulations and Required Provisions

Louisiana Valued Policy Law

If the property is totally destroyed, the amount of the insurance written in the policy shall be taken conclusively to be the true value of the property and the true measure of the loss.

Louisiana Insurance Guaranty Association

The purpose of the association is to protect the policy owners and beneficiaries from the failure of insurers.
Member insurers are those that are admitted to transact insurance in Louisiana.
The guaranty association will cover claims existing prior to the determination of insolvency and arising within 30 days after the determination of insolvency.
The maximum amount that will be paid to a claimant, insured by an admitted insolvent insurer, is the lesser of the amount of loss, the limits of the policy, or $300,000, subject to a $100 deductible. Return of unearned premium is limited to $10,000. Most property and casualty policies in Louisiana include endorsements which explain these limits in further detail.
Workers’ compensation medical claims remain unlimited.
Insurers and agents are prohibited by law from using the existence of the guaranty association to induce prospects to purchase insurance policies.

Louisiana Standard Fire Insurance Policy

No policy of fire insurance may be issued on any property in Louisiana, unless it conforms to all provisions of the Standard Fire Insurance Policy of Louisiana.
A policy which includes the peril of fire and substantial coverage against other perils need not include all provisions of the standard fire policy as long as the fire coverage is as broad as the coverage afforded by the standard fire policy.

Binders

A binder is used to temporarily bind insurance and is only valid until the policy is issued.
The DOI may suspend or revoke the license of an individual who isn’t authorized to bind an insurer.

Loss Payment

Insurer must pay a claim within 30 days (applies to 3rd parties also) after receiving the proof of loss or making a written settlement agreement.
The insurer must initiate loss adjustment of a property damage claim or a claim for reasonable medical expenses within 14 days (30 days for catastrophic loss) after notice of loss by the claimant.
A penalty (the greater of 10% of the amount due or $1,000 plus attorney fees) may be imposed on an insurer who fails to pay a claim within the allowed 30 days.
Penalty won’t apply to arson where a state official is investigating the loss as arson.
When paying an automobile claim, no insurer may require repairs at a particular shop.

Other Coverages

Fair Access to Insurance Requirements (FAIR Plan)

The Louisiana FAIR Plan is designed to provide a means to purchase basic property insurance when it can’t be obtained through standard markets because of the geographic location of the property (must meet underwriting standards).
1. Basic property coverage includes the perils of a Standard Fire Policy, Extended Coverage endorsement and V&MM on an actual cash value basis.
2. Other coverage may be added by the Association or DOI.
The official name of the plan is the Louisiana Joint Reinsurance Plan.
The Louisiana FAIR Plan is a joint reinsurance association formed by insurers licensed to write basic Property insurance in the state.
1. Each insurer assumes a pro rata share of this market.
2. The Association designates an organization with the approval of the DOI to act as the Inspection Bureau.
3. The Inspection Bureau determines the insurability of the properties for which insurance is sought.
4. (Property must be insurable).
Coverage can be obtained on homes and commercial property.
Agents don’t have binding authority. If a risk is acceptable, coverage becomes effective on the date the premium quotation is issued.
If the governing committee of the plan declines coverage, the applicant can appeal to the Louisiana Insurance Rating Commission.
The application must be signed by both the applicant and the producer.

Louisiana Insurance Underwriting Plan

This plan is designed to provide coverage for properties located in coastal areas of the state.
All insurers which write property insurance in the state must participate in the plan.
The plan provides coverage against direct physical damage to property caused by:
1. Fire, with or without extended coverage and vandalism and malicious mischief.
2. Windstorm and hail, but only with respect to dwellings and commercial properties on a monoline basis.
Any structure insured under the plan must be built in substantial compliance with the Standard Building Code, including the design wind requirements.
The governing committee of the plan shall consist of seven representatives of the participating carriers.
Every person having an insurable interest in insurable property is entitled to apply for coverage and inspection of the property.
If the governing committee of the plan declines coverage, the applicant can appeal to the Louisiana Department of Insurance.
Any insurance company which fails to comply with a written directive of the Louisiana Insurance Rating Commission can by fined up to $25,000.

Commercial Policies

Cancellation and Nonrenewal

If coverage hasn’t been in effect for 60 days, the insurance company may cancel the policy by giving written notice to the named insured.
The cancellation notice must be sent 10 days in advance for nonpayment of premium and 60 days for all other reasons.
After the policy has been in effect for more than 60 days the insurer may cancel a policy with 10 days advance notice for nonpayment of premium and 20 days for any of the following:
1. Fraud or material misrepresentation.
2. Activities that increase the hazards insured against.
3. Change in risk which increases the risk of a loss (includes ordinance and law).
4. If the DOI determines that continuing the policy will jeopardize the solvency of the insurer.
5. The insured violated the terms and conditions of the policy.
6. Other reasons approved by the DOI.
An insurer must give the named insured 60 days advance notice for nonrenewal.

Louisiana State Automobile Laws

Code Requirements

Louisiana Motor Vehicle Safety Responsibility Law

Satisfactory evidence of financial responsibility can be shown by doing one of the following:
1. Purchasing an automobile liability policy with limits of $15,000/$30,000/$25,000.
2. Posting a bond with the State Treasurer in the amount of $45,000.
3. Depositing with the State Treasurer $45,000 worth of cash, bonds, or stocks.
The insurer and insured may by written agreement exclude from coverage any person who is a resident of the same household.
Every vehicle registered in the state must have evidence of compliance with the financial responsibility law contained within the state.
Evidence can be shown by certificate of insurance; an automobile policy; an automobile liability insurance binder; a duplicate original of a Motor Vehicle Liability Bond; a certificate from the State Treasurer state that sufficient securities have been deposited; or a certificate of self insurance.
Any law enforcement officer may require that the driver show proof of compliance with the financial responsibility law. If the driver can’t show proof, the officer will take the following actions:
1. Remove the license plate from the vehicle and replace it with a temporary license sticker that is good for 10 days.
2. Owner must show proof of financial responsibility within the ten day period or the license plate will be destroyed.
3. In order to reinstate the registration there will be a reinstatement fee of $50 for the first offense, $150 for the second offense, and $500 for subsequent offenses.
Financial responsibility must be shown by each person who applies for:
1. Registration of a motor vehicle.
2. Renewal of a motor vehicle registration.
3. A driver’s license, unless they declare in writing that they don’t own a motor vehicle.

Louisiana Automobile Insurance Plan

For individuals who have been unable to obtain automobile insurance through normal markets.
Policies are issued with limits necessary to meet the financial responsibility requirements of the state.
When a policy of automobile liability insurance has been cancelled or nonrenewed by insurance company for a reason other than nonpayment of premium, the notice to the insured shall include a statement informing the insured of the availability of the Louisiana Automobile Insurance Plan.

Uninsured Motorist Coverage

Uninsured Motorist coverage with limits of at least $15,000/$30,000 must be offered with every automobile liability policy.
The insurer must offer the same limits for UM coverage as is shown for bodily injury under Part A – Liability Coverage. The insurer isn’t required to offer UM limits that are higher that the Part A- Liability Coverage.
The insured may reject UM coverage or select lower limits in writing.

Cancellation and Nonrenewal of Automobile Insurance

This section n applies to personal automobile insurance not assigned to an assigned risk plan.

Once a policy has been in effect for 60 days, an insurer may only cancel for one of the following:
1. Nonpayment or premium.
2. Fraud or material misrepresentation.
3. The driver’s license or registration (any household member) has been suspended or revoked during the policy period or within 180 days before renewal.
4. The insurer doesn’t receive an application after issuing a binder.
The insurer must give 10 days advance notice for nonpayment of Premium and 30 days advance notice for all other reasons prior to cancellation.
The insurer must give 20 days advance notice of nonrenewal.

Aftermarket Parts Regulation

If the insurer specifies that non original equipment manufacturer (aftermarket) parts are to be used in the repair of the insured’s vehicle, the insured must be notified beforehand.
The written estimate must clearly identify each aftermarket part.
When aftermarket parts are used, the following statement must be attached to the insured’s copy of the estimate:
“This estimate has been prepared based on the use of crash parts supplied by a source other than the manufacturer of your motor vehicle. Warranties applicable to these replacement parts are provided by the manufacturer of these parts rather than the manufacturer of you vehicle”.
1. Upon request, the DOI shall furnish any person a certified abstract (MVR) of the operating record of any person subject to the Motor Vehicle Safety Responsibility Law.
2. The abstract will show the motor vehicles registered in the name of that person.
3. The operating record of an individual driver will only include those offenses where they have pled guilty, forfeited bond, or been found guilty by a court of competent jurisdiction of violating a law in the operation of a motor vehicle.
No insurance company can use the operating record to increase an insured’s premium without complying with the following:
1. Furnishing a copy of the record to the insured.
2. Determining that the insured is over 50% at fault in any accident shown on the abstract.
3. Providing the insured with a written notice of a right to appeal the determination of fault by requesting a hearing before the Department of Public Safety and Corrections.
Accidents involving publicly owned emergency vehicles operated by any public safety or law enforcement officer won’t be included on the individuals officer’s operating record or used by the insurance company to cause increase of premium on that person’s privately owned vehicle.

[mtouchquiz 29]

Casualty Insurance: Unit 11