La. Admin. Code tit. 37 § XI-315

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

Section XI-315 - Aggregate Excess Insurance, Interlocal Risk Management Agency ; Self-Insurance

A. No contract or policy of aggregate excess insurance shall be recognized in considering the ability of an applicant to indemnify the financial obligations of its members under the Workmen's Compensation Act, unless such contract or policy complies with all of the following:

1. is issued by a casualty insurance company authorized to transact such business in this state, or a licensed resident surplus lines broker;

2. is not cancellable or nonrenewable unless written notice by registered or certified mail is given to the other party to the policy and to the Commissioner of Insurance not less than 30 days before termination by the party desiring to cancel or not renew the policy;

3. any contract or policy containing any type of commutation clause shall provide that any commutation effected thereunder shall not relieve the underwriter or underwriters of further liability in respect to claims and expenses unknown at the time of such commutation and which are subsequently reopened by or through a competent authority. If the underwriter proposes to settle their liability for future payments payable as compensation for accidents occurring during the term of the policy by the payment of a lump sum to the interlocal risk management agency, to be fixed as provided in the commutation clause of the policy, then not less than 30 days prior notice of such commutation shall be given to the Insurance Department by the underwriter(s) or its (their) agent by registered or certified mail. If any commutation is effected, then the Commissioner of Insurance shall have the right to direct that such sum be placed in trust for the benefit of the loss fund;

4. all of the following shall be applied toward the reaching of the retention level in the aggregate excess contract:

a. payments made by the employer;

b. payments due and owing to claimants of the employers;

c. payments made on behalf of the employers by any surety bond under a bond required by the Commissioner of Insurance;

d. payments made by the Interlocal Risk Management Agency security fund;

5. copies of the complete policy of aggregate excess insurance shall be filed with the Commissioner of Insurance, together with a certification that such policy fully complies with this rule and applicable statutes.

La. Admin. Code tit. 37, § XI-315

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.