Rules of the Road Avoiding Moving Violations

1. Rules of the RoadAvoiding Moving Violations

2. If during this presentation you hear the word “application”, please note this refers to all filings in general.

3. Introduction The focus of this presentation is to inform you of the most common problem areas we encounter in our daily review of applications and filings. Our goal is to make sure you have a clear understanding of the rules and regulations of the Louisiana Department of Insurance to ensure you will not be cited with a moving violation.

4. Topics • Biographical Affidavits • Amending Articles of Incorporation • Ownership Changes • Mergers • Statutory Deposits • Annual Report/Renewal Filings

5. Introduction In our discussion of these various topics, we will place strong emphasis on the following: • What triggers a filing • Time-frames for filings • Common problems with filings

6. Biographical Affidavits Insurers Biographical affidavits must be submitted for all elected or appointed senior officers no more than sixty days from the effective date of the election or appointment. All Others Biographical affidavits must be submitted for all elected or appointed officers no more than sixty days from the effective date of the election or appointment.

7. Biographical Affidavits “Senior officers” shall mean president, secretary, chief executive officer, chief financial officer, actuary, controller, or any other person who performs the duties generally associated with those positions. This applies to “insurers” only. All other applicants must submit bios for all officers.

8. Biographical Affidavits All entities must submit biographical affidavits for any person owning directly or indirectly 10% or more or any person who exercises control or influence over the licensed entity must also submit a biographical affidavit and for all directors.

9. Biographical Affidavits When submitting a biographical affidavit for an officer or director, the following must also be included in a cover letter: • Full name of all companies for which the individual serves as an officer/director. • Position with each company • Effective date of the election/appointment • Full name of the person who previously held the position.

10. Biographical Affidavits Common Problems • NAIC version only • Incomplete biographical affidavits • Omission of social security numbers • Improper notarizations

11. Biographical Affidavits Filings can be made electronically to newofficer@ldi.state.la.us • If submitted electronically, the filing must include a completed biographical affidavit in .pdf or .tif format.

12. Amending Articles of Incorporation Articles must be submitted anytime they are amended regardless of the reason.

13. Amending Articles of IncorporationWhat to submit • Copy of the amended articles of incorporation certified by the proper domiciliary official • Filing fees in the amount of $25.00 (insurers only) • Effective date of amendment

14. Amending Articles of Incorporation REMINDER! All amendments must be submitted within 60 days of the effective date of the amendment.

15. Amending Articles of Incorporation For name changes and redomestications, the following must also be submitted. • Original certificate of authority/license • Amended Agent for Service of Process form (insurers only)

16. Ownership ChangesWhat to submit • Copy of the final order approving the acquisition (foreigninsurers only) • Effective date of the acquisition • Description of the corporate organizational structure of the entity and all affiliates including a chart showing the ownership percentages for any persons owning 10% or more (all entities except insurers) • Must be submitted within 60 days of the effective date of acquisition

17. MergersWhat to submit • Two certified copies of the agreement and a certificate of merger • Effective date of the merger. • Must be submitted within 60 days of the effective date of merger • If any insurer who is a party in the merger has not been admitted to transact business in this state, a financial statement of the surviving entity showing the financial condition after the merger. (insurers only) • If Louisiana policyholders are present, copy of the assumption agreement. (insurers only) • Original certificate of authority/license of non-surviving entity

19. Statutory Deposits Requirements for Third Party Administrators contracted with insurers and self-insurers: • $100,000 surety bond • Surety company must be authorized to do business in the State of Louisiana. • Form is available on our website

20. Statutory Deposits Requirements for Third Party Administrators contracted with workers compensation self insured funds: • $50,000 surety bond per fund • Surety company must be authorized to do business in the State of Louisiana.

21. Statutory DepositsContinuation Certificate • Both bonds must file a continuation certificate prior to expiration date. • Continuation certificate must be completed by surety company.

22. Statutory Deposits Please note that if your third party administrator has business only with benefit plans who are fully insured by an authorized insurer, no bond is required.

23. Statutory Deposits Effective January 1, 2009, new legislation will be enforced that affects foreign and alien insurers. • House Bill Number 1113 states any insurer who maintain $500,000 in securities in their home state pledged to all policyholders are not required to maintain a deposit in Louisiana.

24. Statutory Deposits House Bill 1113 • However, if an insurer does not meet that requirement, the proposed law increases the amount of the deposit from $20,000 to $100,000. • Current provisions for surety bond in lieu of deposit will not be allowed.

25. Annual Reports/Renewal Filings Risk Purchasing Groups • Renewal forms and fees are due on March 1st annually and must be postmarked by this date. • Fee is $50.00 for most states • Failure to file results in expiration of the registration.

26. Annual Report Filings Viatical Settlement Broker • Annual report and fees are due on March 1st annually and must be postmarked by this date. • If the broker wishes to renew the license, they must state the intent to do so with the annual report filing. • The fee is $50.00 • This is for LICENSED viatical settlement brokers only.

27. Annual Report Filings Producers acting as Viatical Settlement Brokers • Annual report is due on March 1st • No fee is required

28. Annual Report Filings Viatical Settlement Provider • Annual report forms are due on March 1st • If the provider wishes to renew the license, they must state the intent to do so with the annual report filing. • No filing fee.

29. Annual Report Filings Medical Necessity Review Organizations • Annual report due March 1st • Failure to file annual report will result in a moving violation. • No filing fee

30. Annual Report Filings Medical Necessity Review Organizations (Bi-Annual Renewal) • License expires every two years on the anniversary date. • File annual renewal at least 30-60 days before expiration date. • Failure to file annual renewal results in expiration of the license. • The fee is $1500.00

31. Annual Report Filings Vehicle Mechanical Breakdown Insurer Property Residual Value Insurer • Annual renewal is due March 15th Audited financial statement Filing fee is $1500.00 • Failure to file results in expiration of the license.

33. If you have any questions, please contact us: Gerald Buchanan (225) 219-7549 gbuchanan@ldi.state.la.us Angelle Hayes (225) 342-1251 ahayes@ldi.state.la.us

34. Helpful Contacts Company Licensing Division Mike Boutwell, Director Cindy Sarvis, Assistant Director Gerald Buchanan, Compliance Examiner Terry Stubbs, Compliance Examiner Angelle Hayes, Compliance Examiner

35. Helpful Contacts Property & Casualty Policy Forms Elayne Santangelo: 225-219-1258 Property & Casualty Rates/Rules Linda Gonzales: 225-342-5203 Life & Annuity Policy Forms Beth O’Quinn: 225-342-1226 Health Policy Forms Tom Portier: 225-219-4771 Financial Solvency Stewart Guerin: 225-219-3929

36. Helpful Websites Louisiana Department of Insurance www.ldi.state.la.us National Association of Insurance Commissioners (NAIC) www.naic.org Louisiana State Legislature www.legis.state.la.us