Louisiana Administrative Code › Title 37 - INSURANCE › Part XI - Rules › Chapter 3 - Rule 4 - Interlocal Risk Management Agency › Section XI-305 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
Certified Audit
- an audit upon which the
				  auditor expresses his professional opinion that the accompanying statements
				  present fairly the financial position of the self-insurance fund in conformity
				  with generally accepted accounting principles consistently applied, and
				  accordingly, include such test of the accounting records and such other
				  auditing procedures as considered necessary by such auditor.
Contingent Liability
- the amount that the
				  interlocal risk management agency may be obligated to pay in excess of a given
				  year's normal premium collected or on hand.
Department
- the Insurance Department of the
				  State of Louisiana.
Experience Modification
- the applicable
				  experience debit or credit promulgated in accordance with those experience
				  rating plans filed by and approved for the National Council on Compensation
				  Insurance or the Insurance Services Office.
Fund
- the interlocal risk management agency
				  self-insurers fund.
Gross Premium
- the premium determined by
				  multiplying the payroll or other unit of exposure (segregated into the proper
				  workmen's compensation job classification or general liability classification)
				  times the appropriate manual rates.
Loss Fund
- the retention of risk sharing for
				  an interlocal risk management agency under the terms of an aggregate excess
				  contract or contracts.
Manual Rate
- for workmen's compensation
				  purposes that rate filed by and approved for use in the state by the National
				  Council on Compensation Insurance. For public liability exposure, the term
				  means that rate filed by and approved for use by the Insurance Services
				  Office.
Net Safety Factor
- any amount needed in a
				  given fund year, in addition to current loss' reserves to fund future loss
				  development.
Normal Premium
- the standard premium less
				  any discount allowed.
Service Agent
- a business which contracts
				  with an interlocal risk management agency for the purpose of providing all
				  services necessary to place and maintain a group self-insurance program.
Standard Premium
- gross premium plus or
				  minus applicable experience modification.
Statutory Workmen's Compensation Benefit
-
				  those prescribed by Title 23, Louisiana Revised Statutes of 1950, as
				  amended.
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.
Trustee Fund
- any monies and investment
				  under the control of the board of trustees of a self-insurance fund which are
				  not part of the loss fund or which are not required to pay claims.
Trustees
- the executive boards of the
				  Louisiana Municipal Association or of the Police Jury Association of Louisiana,
				  as the case may be, where those bodies have been designated in an
				  intergovernmental agreement to administer an interlocal risk management agency
				  or such members of such executive boards as do not decline to serve as
				  trustees. In all other cases,
trustee
means a group of members
				  elected by the inter local risk management agency, for stated terms of office,
				  to administer a group self-insurance fund and whose duties shall include
				  responsibilities for approving applications for new members of such fund. A
				  trustee shall not be an owner, officer, or employee of the service
				  agent.
AUTHORITY NOTE:
				  Promulgated in accordance with R.S. Title 22, Section 2 of 1950 and Act 462 of
				  the 1979 Session of the Louisiana
				  Legislature.