Current through Register Vol. 50, No. 9, September 20, 2024
A. All applications to create a group
self-insurance fund shall meet the requirements of Louisiana Revised Statutes
Title 23, §1195 et seq., any other applicable laws of the state of Louisiana,
and this regulation.
B.
Applications shall be made in writing on a form provided by the
department.
C. Applications shall
be submitted to the department at least 90 days prior to the effective date for
establishment of a fund. Any application submitted with less than 90 days
remaining before the desired effective date, or which does not contain answers
to all questions, or which is not sworn to and subscribed before a notary
public, or which does not contain all required documents, statements, reports,
and required information, may be returned without review by the
department.
D. All applications
shall be accompanied by:
1. a properly
completed indemnity agreement in a form acceptable to the department, pursuant
to §1111 of this
regulation;
2. security as required
by Louisiana Revised Statutes Title 23, §1195 et seq. and this
regulation;
3. copies of acceptable
excess insurance or reinsurance policies, pursuant to Louisiana Revised
Statutes Title 23, §1195 et seq. and this regulation;
4. a bond covering each third party
administrator, pursuant to Louisiana Revised Statutes Title 23, §1195 et
seq.;
5. a certification from a
designated depository attesting to the amount of monies on hand;
6. copies of the fund bylaws and trust
agreement or other governance documents;
7. individual application of each member of
the fund applying for membership in the fund on the effective date of the fund,
and copies of their executed indemnity agreements;
8. evidence of financial strength and
liquidity of the members dated as of the date of the filing of the application
to satisfy the financial strength and liquidity requirements of Louisiana
Revised Statutes Title 23, §1195 et seq. and this regulation;
9. proof that the fund shall have the minimum
annual earned normal premium as specified in Louisiana Revised Statutes Title
23, §1195 et seq.;
10. the current
annual report or financial statement of any casualty insurance company
providing excess or reinsurance coverage for the fund, which meets the
requirements of Louisiana Revised Statutes Title 23, §1195 et seq. if such
statement is not already on file with the department;
11. the name, address, and telephone number
of the attorney representing the fund, of the qualified actuary for the fund,
and of the certified public accountant who will be auditing the annual
financial statements of the fund, as well as evidence of appointment of each by
the fund;
12. the domicile address
in this state where the books and records of the fund will be maintained, and
the state from which the fund will be administered;
13. proof of advance payment to the fund by
each initial member of the fund of not less than 25 percent of that member's
first year estimated annual earned normal premium;
14. a feasibility study, or other analysis,
prepared by a qualified actuary utilizing actual loss history of the initial
members of the fund;
15. pro forma
financial statements projecting the first three years of operations of the fund
based upon a feasibility study or other analysis prepared by a qualified
actuary, pursuant to Louisiana Revised Statutes Title 23, §1195 et seq. and
§5(A) hereof. Such pro forma financial statements shall include a pro forma
balance sheet, income statement, and statement of cash flow. Each shall be
prepared in accordance with generally accepted accounting principles;
16. a copy of the fund's premium billing
policy indicating whether the premium payments to the fund will be paid by
members annually, monthly, quarterly, or any combination thereof.
E. Upon receipt of the application
and other required materials, the department will review the application and
will request any additional information which is required in a letter to the
applicant.
F. Failure to meet any
of the criteria or provide needed information shall be grounds for denial of
the application.
G. Within 45 days
of receipt of all requested information, the commissioner shall issue a
decision approving or denying the application, or shall extend his time for
review.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
23:1200.1.
