La. Admin. Code tit. 40 § I-1725

Current through Register Vol. 50, No. 11, November 20, 2024

Section I-1725 - Security Requirements

A. Pursuant to R.S. 23:1168, each individually self-insured employer shall deposit with the office acceptable securities or post a surety bond issued by a corporate surety authorized to do business in the state of Louisiana and qualified as herein provided or make such other provision as may be approved by the office in such amount as may be determined by the office in accordance with the following rules.

1. In every case where an application is favorably considered, the office will then decide the amount of acceptable securities or surety bond which will be required; provided, however, that in no case shall the amount of securities or surety bond be less than the greater of:

a. $100,000;

b. the average workers' compensation losses incurred over the most recent three year period multiplied by 110 percent; or

c. the total amount of unpaid workers' compensation reserves at the time of application multiplied by 110 percent.

2. A majority-owned subsidiary of a parent company, duly admitted as a self-insurer, may not be required to post securities or surety bond, provided the parent company by resolution guarantees payment of the liabilities of the subsidiary.

3. The minimum excess insurance requirements that an individually self-insured employer shall maintain shall be determined by the office.

La. Admin. Code tit. 40, § I-1725

Promulgated by the Department of Employment and Training, Office of Workers' Compensation, LR 17:964 (October 1991).

AUTHORITY NOTE: Promulgated in accordance with R.S. 23:1168 of Act 938 of 1988 Regular Session.