Louisiana Administrative Code › Title 37 - INSURANCE › Part III - Patient's Compensation Fund Oversight Board › Chapter 7 - Surcharges › Section III-701 - PCF Consulting Actuary

Current through Register Vol. 50, No. 6, June 20, 2024
A. In
				accordance with the provisions of law applicable to contracting for personal,
				professional, or consulting services, the board shall retain a qualified,
				competent, and independent consulting actuary to advise and consult the board
				on all aspects of the board's administration, operation, and defense of the
				fund which require application of the actuarial science. Each year, the board
				shall cause the consulting actuary to prepare an annual actuarial study
				required by the Act and these rules. An individual actuary contracted by the
				board, or a principal actuary assigned to the engagement and employed by a
				partnership, firm, or corporation contracted by the board, shall possess formal
				education and at least a baccalaureate degree in the actuarial sciences, shall
				be a full member of the Casualty Actuarial Society, and shall have had
				substantial prior experience in providing services as a consulting actuary to
				insurance companies underwriting professional health care liability
				insurance.
B. The board's contract
				with a consulting actuary shall provide that the consulting actuary shall be
				responsible for:
1. advising the executive
				director with respect to the necessary and proper content and form of claims
				experience data collected and maintained by the executive director;
2. advising the executive director with
				respect to the establishment, maintenance, and adjustment of reserves on
				individual claims against the fund and the establishment, maintenance, and
				adjustment of reserves for incurred but not reported claims;
3. performing actuarial analysis of claims
				experience data collected and maintained by the executive director with respect
				to the fund, commercial professional liability insurers doing business in this
				state, self-insured health care providers, together, as necessary or
				appropriate, with regional or national professional health care liability
				claims experience data, and development, in consideration of the fund's
				allocated and unallocated expenses, its organization, administration, and legal
				and regulatory constraints, of a surcharge rate structure, rated and classified
				according to the several classes or risks against which the fund provides
				compensation, that shall reasonably ensure that the fund is sufficiently funded
				so as to be and remain financially and actuarially capable of providing the
				compensation for which it is organized;
4. developing, in conjunction with the
				executive director, proposed surcharge rates and surcharge rate changes in
				accordance with the consulting actuary's actuarial analyses, for submission to
				the board;
5. as requested by the
				executive director, personal presentation of proposed surcharge rates and
				surcharge rate changes at meetings of the board; and
6. generally advising and consulting with the
				executive director on all actuarial questions affecting the board's
				administration, operation, and defense of the fund.