Louisiana Administrative Code
Title 58 - RETIREMENT
Part I - Louisiana State Employees' Retirement System
Chapter 11 - Voluntary Deductions from Retiree Benefits Payroll
Section I-1103 - Vendor Requirements
Universal Citation: LA Admin Code I-1103
Current through Register Vol. 50, No. 9, September 20, 2024
A. Authority for payroll deductions shall be governed by this Chapter. General insurance deduction vendors shall meet the following requirements.
1. Foreign companies shall:
a. have a current rating in A.M. Best of B+
or better, unless:
i. notwithstanding any
other law, rule, or regulation to the contrary, and if they are in good
standing with the Department of Insurance, and subject to the other applicable
provisions of this Section, a foreign company which has participated in the
Office of State Uniform Payroll deduction system for a period of at least ten
years and has a rating in A.M. Best of B, may continue to market and sell
insurance policies through payroll deduction until the beginning of the next
open enrollment period following the four-year anniversary date from the date
of the issuance of the B rating by A.M. Best, provided they have maintained a
rating of B or better for the entire four-year period. Thereafter, in the event
that the foreign insurer has maintained a rating of B by A.M. Best and that
rating is increased from B to a B+ or better and they meet the other applicable
requirements of this Section and other applicable rules and regulations, they
may resume marketing and selling insurance through the payroll deduction
system; or
ii. notwithstanding any
other law, rule, or regulation to the contrary, if a foreign company has been
participating in the Office of State Uniform Payroll deduction system for a
period of at least ten years, and they have a rating in A.M. Best of B, they
may maintain and administer indefinitely those policies purchased through
payroll deduction as long as they maintain a rating by A.M. Best of no less
than a B, are in good standing with the Department of Insurance, and comply
with other applicable rules, and regulations, and laws and the provisions of
this Section;
b. have
been doing business under the same name for not less than three
years;
c. offer like product,
service, or coverage to citizens of Louisiana;
d. be in compliance with all procedural,
accounting, and reporting requirements governing employee deductions.
2. Domestic companies shall:
a. have a current rating in A.M. Best of B or
better, or if the company is of insufficient size to obtain a rating by A.M.
Best, has posted a bond with the division of administration in the amount of:
i. $100,000, if the company is a member
insurer of the Louisiana Life and Health Insurance Guaranty Association;
or
ii. $250,000, if the company is
not a member insurer of the Louisiana Life and Health Insurance Guaranty
Association, or if the product for which the deductions are proposed is not
covered under the Louisiana Life and Health Guaranty Association Act;
b. have been doing business under
the same name for not less than three years;
c. provide like product, service, or coverage
to citizens of Louisiana;
d. be in
compliance with all procedural, accounting, and reporting requirements of all
rules and requirements governing employee deductions.
3. Vendors offered through other state
agencies or political subdivisions, if approved by the executive
director.
AUTHORITY NOTE: Promulgated in accordance with R.S. 11:515.
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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