Louisiana Insurance Laws on the Exam: Title 22, Auto Reform & What Agents Must Know

If you're preparing for the Louisiana PSI insurance licensing exam and you want to maximize your score on the state law section — which is where most exam failures happen — this guide is for you. Louisiana's insurance regulatory framework is built on Title 22 of the Louisiana Revised Statutes, and the state has undergone significant legal changes in recent years, including the largest tort reform in Louisiana history signed in May 2025. Understanding the statutory landscape you'll be tested on is essential, and it is equally essential for the career you are about to begin.

The Foundation: Title 22 of the Louisiana Revised Statutes

Title 22 is the Louisiana Insurance Code — the primary statutory framework governing all insurance regulation in the state. The Louisiana Department of Insurance (LDI) Commissioner derives authority from Title 22 to issue regulations (codified in Louisiana Administrative Code Title 37 and other sections), conduct market conduct examinations, impose civil penalties, and take disciplinary action against producers.

For exam purposes, Title 22 content falls into several categories: producer licensing requirements, unfair trade practices, policy form and filing requirements, financial solvency standards, and specific product regulations. You do not need to memorize statute numbers, but you do need to understand the regulatory principles they establish.

Producer Licensing Under Title 22

The exam tests your knowledge of who must be licensed, what a Louisiana producer license authorizes, and the grounds under which the LDI can take adverse action. Every person who solicits, negotiates, or sells insurance in Louisiana must hold an LDI-issued license for the applicable line. Producers must be appointed by each insurer on whose behalf they solicit business.

The LDI can deny, suspend, revoke, or refuse to renew a producer license for grounds including false information on an application, demonstrated incompetence, misappropriation of premiums, willful misrepresentation of policy terms, and conviction of certain crimes. The LDI must provide notice and an opportunity for hearing before taking adverse license action.

Unfair Trade Practices Under Title 22

Louisiana's unfair trade practices framework prohibits the same broad categories of conduct prohibited in most states: misrepresentation, false advertising, twisting (inducing a policyholder to lapse an existing policy through misrepresentation), churning, rebating, coercion, and unfair discrimination. These provisions are tested in scenario-based questions — be able to identify when described producer behavior crosses from aggressive marketing into a prohibited practice.

Louisiana Auto Insurance Law: A Major Exam Topic

Louisiana's auto insurance framework has undergone the most significant changes of any topic area in recent memory, making it a high-priority area for exam preparation.

Minimum coverage requirements: Louisiana requires 15/30/25 — $15,000 per person bodily injury, $30,000 per accident bodily injury, and $25,000 property damage. This is notably lower than most comparison states. Kentucky requires 25/50/25. Indiana requires 25/50/25. Missouri requires 25/50/10. Wisconsin requires 25/50/10. Louisiana's 15/30/25 is among the lower minimum structures in the country.

Fault system: Louisiana is an at-fault state. Effective January 1, 2026, Louisiana transitioned from a pure comparative fault system to a modified 51% comparative fault system under Act 15, signed by Governor Landry on May 28, 2025, as part of the largest tort reform in Louisiana history. Under the new system, any party found 51% or more at fault is barred from recovering any compensation. Parties found 50% or less at fault may still recover, but their award is reduced proportionally. This applies to accidents occurring on or after January 1, 2026.

No Pay No Play: Louisiana's No Pay No Play statute bars uninsured drivers from recovering the first $100,000 in personal injury and property damage combined from at-fault parties. Effective August 1, 2025, this threshold was updated as part of the 2025 tort reform package.

Statute of limitations: The PI SOL was increased from one year to two years for accidents occurring after July 1, 2024, under Act 423.

UM/UIM: Uninsured and underinsured motorist coverage is available in Louisiana but is not mandatory. Producers should understand UM/UIM coverage structure and how it interacts with Louisiana's at-fault system.

Workers' Compensation

The exam tests basic workers' compensation knowledge under the Louisiana Workers' Compensation Act. Louisiana requires coverage for employers with one or more employees. NCCI is the rating bureau. The Louisiana Workers' Compensation Corporation (LWCC) is the state-chartered private nonprofit mutual insurer and the largest WC carrier in Louisiana. The Louisiana Workforce Commission (LWC), through its Office of Workers' Compensation Administration (OWCA), administers the program. TTD benefits are paid at 66 2/3% of average weekly wage.

Health Insurance and Healthy Louisiana

Louisiana uses the federal Healthcare.gov platform — it does not operate a state-based marketplace like Kentucky's kynect. Louisiana expanded Medicaid effective June 1, 2016, making it the first state in the Gulf South to do so. The Medicaid expansion program is called Healthy Louisiana and covers adults up to 138% of the federal poverty level. There is no state individual mandate penalty in Louisiana.

Annuity Best Interest (Effective September 20, 2024)

Louisiana adopted the Annuity Best Interest standard effective September 20, 2024. Producers with a Life line of authority who sell annuities must complete a 4-hour Annuity Best Interest training course before selling. The standard establishes the same four obligations that apply in other adopting states: care, disclosure, conflict of interest, and documentation.

Frequently Asked Questions

• What are Louisiana's minimum auto insurance requirements? Louisiana requires 15/30/25 — $15,000 bodily injury per person, $30,000 per accident, and $25,000 property damage. This is among the lower minimums in the region compared to Kentucky (25/50/25), Indiana (25/50/25), and Missouri (25/50/10 at the statutory floor).
• What changed about Louisiana's comparative fault system in 2026? Effective January 1, 2026, Louisiana moved from pure comparative fault (no recovery bar at any fault level) to a modified 51% comparative fault system under Act 15. Parties found 51% or more at fault are completely barred from recovery. This applies to accidents occurring on or after January 1, 2026 and represents the most significant change to Louisiana tort law in the state's history.
• What is the No Pay No Play statute? The No Pay No Play statute bars uninsured drivers involved in a Louisiana auto accident from recovering the first $100,000 in combined personal injury and property damage compensation, regardless of fault. As of August 1, 2025, updates to this threshold were part of the broader 2025 tort reform package.
• What is Healthy Louisiana and how does it relate to the insurance exam? Healthy Louisiana is Louisiana's Medicaid program, expanded under the ACA effective June 1, 2016, covering adults up to 138% FPL. Louisiana uses Healthcare.gov (not a state-based exchange) for marketplace plans. For the H&A exam, understanding the distinction between Healthy Louisiana (Medicaid) and Healthcare.gov marketplace plans is important.
• Do I need to memorize Louisiana statute numbers for the exam? Generally no. The exam tests understanding of regulatory principles and concepts rather than verbatim citation of statute numbers. However, knowing the framework — Title 22 as the Insurance Code, the Louisiana Workers' Compensation Act, and the 2025-2026 tort reform package — helps you recognize correct answers quickly. JustInsurance's Louisiana-approved exam prep courses cover Title 22, the 2025 tort reform changes, the Annuity Best Interest standard, and all Louisiana-specific law tested on the PSI exam. Enroll at JustInsurance today and master the state law content that separates passing candidates from those who need a second attempt.