LAC 37:XIII.14901. Purpose

A. Regulation 106 implements the provisions of Act 844, of the 2014 Regular Session of the Louisiana Legislature, specifically R.S. 22:1964 (28) which mandates that the Department of Insurance promulgate rules and/or regulations addressing the replacement of limited benefit insurance policies as defined in R.S.22:47(2)(c). B. The purpose of this regulation is: 1. to regulate the activities of insurers and producers with respect to the replacement of limited benefit insurance policies; 2. to protect the interests of limited benefit insurance policy purchasers by establishing minimum standards of conduct to be observed in a replacement transaction. It will: a. assure that purchasers receive information with which a decision can be made in his or her own best interest; b. reduce deliberate use of misrepresentation or false statements in the sale of limited benefit replacement policies.