La. Admin. Code tit. 37 § XI-313

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

Section XI-313 - Interlocal Risk Management Self-Insurance Funds ; Advance Premium Discounts; Surplus Distribution; Deficit

A. The trustees of any interlocal risk management agency shall not allow advance premium discounts to any member in excess of that allowed by the excess insurance underwriter, subject however, to a maximum of 15 percent of their standard premium.

B. Any surplus monies for a fund year in excess of the amount necessary to fulfill all obligations under the Workmen's Compensation Act for that fund year, including a provision for claims incurred but not reported and related expenses, may be declared to be refundable by the trustees at any time, and the amount of such declaration shall be a fixed liability of the fund at the time of the declaration. The date of payment shall be as agreed by the trustees, except that surplus monies not needed to satisfy the loss fund requirements (i.e., trustees' funds), as established by the aggregate excess contract, may be refunded immediately after the end of the fund year, with the approval of the Commissioner of Insurance. The intent of this rule is to ensure that sufficient monies are retained in the funds to assure that the total assets are $200,000 greater than total liabilities for each fund year.

C. In the event of a deficit in any fund year, the deficit shall be made up immediately from any of the following:

1. unencumbered surplus from a fund year other than the current fund year;

2. trustees' funds;

3. by assessment of the membership of the deficit fund year, if ordered;

4. by such alternative method as the Commissioner of Insurance may approve;

5. by reduction or elimination of the advance premium discount provided to members.

D. The Commissioner of Insurance shall be notified before any transfer of unencumbered surplus funds and of any method utilized to eliminate a deficit.

La. Admin. Code tit. 37, § XI-313

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.