Opinion Number

Dear Mr. Dunlap:

You have requested the opinion of this office as to an interpretation of LSA R.S. 9:3550(J). That is, whether an insurer transacting business in Louisiana may refuse premiums forwarded to it by a Louisiana licensed premium finance company.

LSA R.S. 9:3550(J) was enacted in 1992 and provides as follows:

No insurer or its agent may refuse to issue a policy of insurance solely because the premiums therefor have been advanced by a premium finance company licensed in Louisiana with which the insurer or its agent is not affiliated or does not customarily do business.

This statute was…