La. Admin. Code tit. 37 § XI-307

Current through Register Vol. 50, No. 9, September 20, 2024

Section XI-307 - Requirements Necessary to Obtain a Certificate of Authority as an Interlocal Risk Management Agency

A. Evidence must be submitted to the Insurance Department that two or more local government subdivisions have made an executed agreement among themselves to form and become members of an interlocal risk management agency.

B. Copies of the bylaws and other agreements must be submitted to the Insurance Department.

C. A copy of the ordinance or other enabling Act that is adopted by the political subdivisions authorizing execution of an agreement to form an interlocal risk management agency must be submitted to the Department of Insurance.

D. Each interlocal risk management agency must identify its agent for service of process to the Department of Insurance.

E. Each fund must have an annual gross premium calculated in accordance with the applicable manual premium rate or rates, plus or minus applicable experience credits or debits, of not less than $200,000.

F. An interlocal risk management agency must, at all times, maintain a contract or contracts of aggregate excess insurance of at least $5,000,000 as respects public liability claims if a fund is formed to self-insure public liability claims.

G. An interlocal risk management agency must, at all times, maintain a contract or contracts of specific excess insurance as respects workmen's compensation claims. Those contracts must provide for statutory workmen's compensation benefits which shall include provisions for unlimited medical and rehabilitation expenses, except that interlocal risk management agencies that are in existence prior to September 1, 1980 shall be deemed to be in compliance with this rule provided a contract or contracts of specific excess insurance has been submitted with a limit of liability in the amount of at least $1,000,000. On the first renewal date following September 1, 1980, the exception shall not be applicable.

H. Each interlocal risk management agency must provide statutory workmen's compensation benefits. A contract or contracts of excess insurance as provided in §307. G shall be provided to secure payment of statutory workmen's compensation benefits.

I. A copy of each contract of excess and aggregate insurance must be filed with the Department of Insurance.

J. Each risk contract must contain a provision that the Department of Insurance will be notified not less than 30 days in advance in the event of cancellation of the contract by action of either the interlocal risk management agency or the insurance company that issued the contract.

La. Admin. Code tit. 37, § XI-307

Promulgated by the Department of Insurance, Commissioner of Insurance, LR 16:621 (July 1990).

AUTHORITY NOTE: Promulgated in accordance with R.S. Title 22, Section 2 of 1950 and Act 462 of the 1979 Session of the Louisiana Legislature.