La. Admin. Code tit. 37 § XIII-14511

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

Section XIII-14511 - Duties and Responsibilities of an Approved Assurance Organization

A. An assurance organization that has been approved by the commissioner shall obtain authorization from the accredited professional employer organization and shall release to the department confidential information in support of each accredited professional employer organizations initial registration and/or renewal registration, including but not limited to the following information:

1. basic information of the applicant professional employer organization to include:

a. the name(s) of all professional employer organization entities under common control;

b. the address of the domicile, headquarters and principal place of business of the professional employer organization;

c. the physical location of all of the professional employer organizations office(s) or place(s) of business in Louisiana and elsewhere;

d. current contact information for the professional employer organizations clients that are doing business in Louisiana;

e. cross guarantees of all relevant entities; and

f. copy of surety bonds providing coverage to the professional employer organization;

2. basic information regarding the name, address, telephone number and facsimile number of the controlling person(s) of the applicant professional employer organization;

3. pursuant to R.S. 22:1984, financial information of the applicant professional employer organization, including, but not limited to:

a. current fiscal/calendar year end audited financial statements;

b. a spreadsheet demonstrating the prior fiscal/calendar year end audited financial information and year-to-date calendar quarter updates, if available, including current assets and liabilities, net worth, net worth ratio, working capital, and net income for each stated period; and

c. quarterly certifications by an independent certified professional accountant of the timely payment of state and federal payroll taxes, insurance premiums, and contributions to employee retirement plans for the most recent calendar quarter and prior five calendar quarters;

4. basic insurance information on the applicant professional employer organizations workers compensation coverage;

5. basic insurance information on the applicant professional employer organizations health insurance coverage; and

6. certification that the applicant professional employer organization is in compliance with the assurance organizations accreditation standards and procedures.

B. An assurance organization that has been approved by the commissioner shall also obtain authorization from the accredited professional employer organization and shall release to the department confidential information on behalf of the applicant with respect to any compliance reporting requirement of the department pursuant to R.S. 22:1984, including without limitation, any reporting initiated at the request of the department. This section shall apply to any and all communications of any nature by the assurance organization, its agents, employees, or other designated representatives, that contain the confidential information transmitted to the department in support of the initial or renewal registration of the applicant professional employer organization as well as any other response provided to satisfy any inquiry made by the department.

C. An assurance organization approved by the commissioner shall provide written notice to the department within 10 business days of a determination by the assurance organization that the professional employer organization:

1. fails to meet the qualifications for registration under R.S. 22:1741 through R.S. 22:1751; or

2. fails to meet the qualifications for accreditation or certification by the assurance organization.

D. An assurance organization approved by the commissioner shall submit all required information through secure internet server, or as otherwise directed by the department.

E. An assurance organization approved by the commissioner shall comply with all time periods, application instructions, and other requests or directives made by the department.

F. An approved assurance organization shall provide the department such information that may be necessary and proper for the execution of the powers and duties of the department pursuant to this Regulation 102 and the Louisiana Insurance Code.

La. Admin. Code tit. 37, § XIII-14511

Promulgated by the Department of Insurance, Office of the Commissioner, LR 40:2593 (12/1/2014).

AUTHORITY NOTE: Promulgated in accordance with R.S. 22:11, R.S. 22:1750, R.S. 22:1751, R.S. 22:1984, and the Administrative Procedure Act, R.S. 49:950 et seq.