Louisiana Marketing Rules, Ethics & Unfair Practices
The final state topic covers how a Louisiana producer must behave in the market: the prohibited unfair trade practices, the duty to handle client money properly, and the advertising and disclosure standards that keep sales honest. Most of these rules come from Louisiana's adoption of the unfair trade practices provisions of the insurance code and the Louisiana Department of Insurance's rules.
Prohibited Unfair Trade Practices
Louisiana's insurance code prohibits unfair methods of competition and unfair or deceptive acts in the business of insurance. Prohibited conduct includes misrepresenting policy terms, false or misleading advertising, unfair discrimination between similar risks, and deceptive claim practices. Violations can lead to fines and license suspension or revocation by the Louisiana Department of Insurance.
Rebating, Twisting, and Churning
Rebating, offering any part of the premium or commission or other valuable consideration as an inducement to buy, is prohibited in Louisiana. Twisting is using misrepresentation to induce a policyholder to drop an existing policy for a new one; churning is a similar replacement abuse involving the same insurer's policies. All are prohibited because they harm consumers and create unfair discrimination among policyholders.
Fair Advertising and Handling Client Funds
A producer must present products accurately and never misrepresent benefits, dividends, policy terms, or an insurer's financial condition, and must not use the guaranty association as a sales inducement. Premiums a producer collects belong to the insurer or client, not the producer; Louisiana treats this as a fiduciary duty, so funds must be remitted properly and never commingled or converted for personal use.
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State-specific details
State exam facts
- State regulator
- Louisiana Department of Insurance
- Exam vendor
- PSI
- Prelicensing education
- 40 hours (combined life, accident & health) or 20 hours per single line
- Passing score
- 70%
Who regulates life & health insurance licensing in Louisiana?
The Louisiana Department of Insurance (LDI) licenses producers and contracts with PSI Services to administer the licensing examinations.
Does Louisiana require prelicensing education for the life & health exam?
Yes. Louisiana requires 40 hours of prelicensing education for a combined life, accident & health license (or 20 hours for a single line), with a passing course-completion exam.
How is the Louisiana life & health exam administered?
The exam is delivered by PSI Services, and a 70% passing score is required on each exam.
In the Louisiana Life & Health Insurance Producer Exam guide: A KEY CONCEPT box, a Common Traps list and a Check Yourself set closing each of the 9 national chapters. Practice here stays free.