La. Admin. Code tit. 37 § XIII-10307

Current through Register Vol. 50, No. 9, September 20, 2024

Section XIII-10307 - Limited Licensing; Application, Supplements, Requirements

A. Applicants for a rental company limited license shall apply to the Commissioner of Insurance on forms established by the commissioner. The application may request any information deemed necessary by the commissioner, including but not limited to the following:

1. the applicant's corporate, firm, or other business entity name, the business address and telephone number of the principal place of business and the business address and telephone number of each additional location at which the applicant will transact business under the license;

2. all assumed business names and other names under which the applicant will engage in business under the license;

3. the names of the employees, its agents, members, partners, officers, directors and stockholders of the applicant personally engaged in this state in soliciting or negotiating insurance in conjunction with the rental of a vehicle;

4. a declaration by the applicant that the applicant:

a. is competent and trustworthy;

b. intends to act in good faith;

c. has a good business reputation;

d. has the appropriate experience, training or education that qualifies the applicant for the license applied for;

e. has or will train all employees to be involved in the sale, offering, or negotiation of coverage prior to their conducting such activities with members of the public;

5. the application shall be signed by an officer of the applicant.

B. The application for this limited license shall be supplemented by a detailed plan of operation to be submitted on forms prescribed by the commissioner, which shall request information deemed necessary, including but not limited to:

1. name of any appointing insurer(s), if applicable;

2. the lines of business the applicant intends to write; including:

a. personal accident insurance;

b. liability;

c. personal effects;

d. roadside assistance;

e. emergency sickness; or

f. any other travel or auto related coverage in connection with or incidental to rental transaction;

3. a list of all business locations within Louisiana from which business will be conducted under the license.

C. The application for this limited license shall be supplemented with a copy of the licensee's proposed Insurance Sales Material Disclosure as required by the Louisiana Insurance Code, which at a minimum shall:

1. be received by the department prior to its use and be subject to approval by the department;

2. summarize clearly and correctly, the material terms of coverage offered to renters, including the identity of insurer(s), if applicable;

3. disclose that policies offered by the rental company may provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage;

4. state that purchasing the kinds of coverage specified in this Part is not required when renting a vehicle;

5. describe the claims filing process.

D. The application for this limited license shall be supplemented with a copy of the licensee's proposed training program or syllabus as required by the Louisiana Insurance Code. The training program required by this Part shall:

1. be received by the department prior to its use and be subject to approval by the department;

2. include basic instruction about the kinds of coverage offered under the license;

3. include the following items:

a. renters of vehicles are not required to purchase the coverage offered through the licensee as a condition of renting a vehicle;

b. renters must be informed that coverage offered by the licensee may duplicate existing coverage of the renter and that the renter should consult with his or her insurance producer if the renter has any questions about existing coverage;

c. the rental period of the rental agreement can not exceed 90 consecutive days;

d. claims procedures;

e. the identity of any insurance company providing coverage offered by the licensee;

f. evidence of coverage in the rental agreement must be disclosed to every renter who elects to purchase such coverage;

g. employees of the licensee are not authorized to evaluate a renter's existing coverage.

La. Admin. Code tit. 37, § XIII-10307

Promulgated by the Department of Insurance, Office of the Commissioner, LR 31:932 (April 2005).

AUTHORITY NOTE: Promulgated in accordance with R.S. 22:3, 22:2112, and the Administrative Procedure Act, R.S. 49:950 et seq.