La. Admin. Code tit. 40 § I-1729
Current through Register Vol. 50, No. 11, November 20, 2024
Section I-1729 - Financial Classes, Security Amounts, and Waiver of SecurityA. Each self-insurer will be classified according to its net worth as shown on its most recent year-ended financial statement submitted to our office. The following classifications will be established and known as Financial Classes (FC). 1. An employer whose net worth is greater than or equal to $750,000 but less than $5,000,000 shall be in Financial Class I (FC I).2. An employer whose net worth is greater than or equal to $5,000,000 but is less than $50,000,000 shall be in Financial Class II (FC II).3. An employer whose net worth is greater than or equal to $50,000,000 but less than $250,000,000 shall be in Financial Class III (FC III).4. An employer whose net worth is greater than or equal to $250,000,000 shall be in Financial Class IV (FC IV).B. The bond or security in FC IV, deposit requirement of a self-insurer may only be waived as follows: 1. in FC IV, if a satisfactory certified audit is submitted and the debt/equity ratio that is below 3:1; or2. if applicant is a municipality or other political subdivision which has maintained a bond rating of not less than Baa (Moody's) on all outstanding bond issues and continuously maintained an unrestricted fund balance of not less than $5,000,000.C. The security required by the Office of Workers' Compensation will be the greater of $100,000 or the average of the most recent three years of workers' compensation losses incurred. In no event shall this calculated amount be less than the workers' compensation outstanding reserves. In the event that the open workers' compensation reserves are greater than the average workers' compensation losses incurred, the amount of the security required will be the amount of the open reserves.La. Admin. Code tit. 40, § I-1729
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.