Current through Register Vol. 50, No. 9, September 20, 2024
A.
Aggregate and specific excess insurance with liability limits and retention
amounts acceptable to the Office of Workers' Compensation shall be required as
a condition of approval of any individual self-insurer as hereinafter provided.
1. The retention of specific excess policies
shall be no more than $250,000 or one percent of the self-insurer's net worth,
whichever is greater. The maximum retention so calculated shall be rounded to
the nearest $50,000. Acceptable retention levels, subject to the above maximum,
shall be determined by the office for each self-insurer. Such acceptable
retention shall be based on an evaluation of the self-insurer's financial
condition and exposure to loss.
2.
In cases where the upper limit of a corporation's excess insurance is not
statutory, the Office of Workers' Compensation will require that the amount be
at least the greater of the average incurred workers' compensation losses for
the last three years or $5,000,000.
B. No contract or policy of excess insurance
shall be recognized by the office in considering the ability of an applicant to
fulfill its financial obligation under the Workers' Compensation Act unless
such contract or policy:
1. is issued by a
recognized, admitted or approved casualty insurance company with a financial
rating as shown in the most current issue of Best's Key Rating Guide,
Property-Casualty of not less than "B" and "IV;"
2. is not cancelable except upon 20 days
written notice by registered or certified mail to the other party to the policy
and the Office of Workers' Compensation. The required notice is 10 days if the
cancellation is for non-payment of policy premium; and
3. is renewable at the expiration of the
policy period unless written notice by registered or certified mail is given to
the other party to the policy and the Office of Workers' Compensation, 20 days
prior to such expiration, by the party desiring to cancel or not to renew the
policy. The required notice or nonrenewal is 10 days if the nonrenewal is for
nonpayment of policy premium.
C. Additionally, a contract or policy of
excess insurance containing any commutation clause shall only be recognized by
the office in considering the ability of an applicant to fulfill its financial
obligation under the Workers' Compensation Act where the office is satisfied
that sufficient security is provided to assure future payments of compensation
to employee(s) entitled thereto.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
23:1168 of Act 938 of 1988 Regular
Session.
