La. Admin. Code tit. 40 § I-1705
Certified Audit- an audit upon which the auditor expresses his professional opinion that the accompanying statement presents fairly the financial position of the self-insurer or fund in conformity with generally accepted accounting principles consistently applied.
Commutation- a substitution, exchange or interchange of one security for another.
Conditional Reserves- acceptable assets equal to the security deposit requirement plus any additional contingent reserves established by the trustees or required by the office.
Contingent Liability- the amount that a self-insurer's fund may be obliged to pay in excess of a given fund year's standard premium collected or on hand. This liability is considered funded if a security deposit equal to the total amount of the contingent liability has been posted. This liability is considered unfunded if a surety bond has been posted equal to all or a portion of the total amount of the contingent liability.
Current Ratio- the ratio of current assets to current liabilities as shown in the most recent financial statement.
Loss Development- the change in incurred loss from one point in time to another.
Loss Fund- the retention of liability for an individual self-insurer under the terms of an aggregate excess contract. In the absence of an aggregate excess policy, it is the amount of money allocated to pay claims.
Manual Premium- premium determined by multiplying the payroll (segregated into the proper workers' compensation job classifications) times the appropriate manual premium rates, or premiums tabulated on unspent payrolls, or limited payrolls as promulgated by the National Council on Compensation Insurance.
Net Safety Factor- any amount needed in a given fund year in addition to current loss reserves to fund future loss development.
Office- the Office of Workers' Compensation Administration.
Service Company- a business which has met all the requirements of §1713 of these rules and which has obtained office approval to contract with self-insurers for the purpose of providing all services necessary to plan and maintain an approved self-insurer program. The term Service Agent is synonymous with the term Service Company as used in these rules.
Surplus- all other assets a fund may have on hand in excess of all loss reserves, actual and contingent liabilities and net safety factors in all fund years.
Working Capital or Net Current Assets- current assets less current liabilities.
La. Admin. Code tit. 40, § I-1705