Louisiana Administrative Code › Title 37 - INSURANCE › Part III - Patient's Compensation Fund Oversight Board › Chapter 7 - Surcharges › Section III-711 - Payment of Surcharges: Insurers and Self-Insurance Trusts

Current through Register Vol. 50, No. 6, June 20, 2024
A. Applicable
				surcharges for enrollment and qualification with the fund shall be collected on
				behalf of the board by commercial professional health care liability insurance
				companies and approved self-insurance trusts from insured health care providers
				electing to enroll and qualify with the fund. Such surcharges shall be
				collected by such insurers and trusts at the same time and on the same basis as
				such insurers' and trust's collection of premiums or contributions from such
				insureds. Surcharges collected by such insurers and trusts on behalf of the
				board shall be due and payable and remitted to the board by such insurers and
				trusts within 30 days from the date on which such surcharges are collected from
				any insured health care provider.
B. Annual surcharges for initial PCF coverage
				for insured health care providers whose surcharges are collected by insurers
				and trusts for enrollment and qualification with the fund shall be due and
				payable to the collecting insurers and trusts on or before the date of initial
				PCF coverage. Annual surcharges for renewal coverage due the board by insured
				health care providers whose surcharges are collected by insurers and trusts for
				enrollment and qualification with the fund shall be due and payable to the
				collecting insurers and trusts on or before 30 days following the expiration of
				the prior enrollment period. Remittance of surcharges to the board by the
				insurers and trusts shall be made in such form and accompanied by records in
				such forms or on such forms as may be prescribed by the executive director so
				as to provide for proper accounting of remitted surcharges and the identity and
				class of health care providers on whose behalf such surcharges are remitted.
				Such insurers and funds remitting surcharges to the board shall certify to the
				board, at the time of remitting such surcharge to the board, the date that the
				surcharges were collected by them from the health care providers. The payment
				of surcharges by an approved self-insurance trust that does not collect
				premiums or contributions from insureds will be governed by
				§713 hereof.
C. Failure of the commercial professional
				health care liability insurers, agents of the insurer, risk manager, or surplus
				line agent, and approved self-insurance trust funds to remit payment within 30
				days of collecting such annual surcharge may subject the commercial
				professional liability insurers, commercial insurance underwriters, and
				approved self-insurance trust funds to a penalty, the amount of which will be
				set by the board on an annual basis, not to exceed 12 percent of the annual
				surcharge, and all reasonable attorney fees. Upon the failure of the commercial
				professional health care liability insurers, commercial insurance underwriters
				and approved self-insurance trust funds to remit as provided in §711, the board
				may institute legal proceedings to collect the surcharge, together with
				penalties, legal interest, and all reasonable attorney fees.
D. If the instrument used to pay the
				surcharge is returned to the board by the payor institution and/or payment
				hereon is denied for any reason, the health care provider shall be notified
				thereof by the board. If the surcharge and any insufficient funds (NSF) charge
				incurred by the board is not paid in full by certified check, cashier's check,
				money order, or cash equivalent funds received by the board within 10 calendar
				days of the provider's receipt of said notice, then the provider's coverage
				with the fund shall be terminated as of the end of the previous enrollment
				period.
E. It is the purpose of
				§711 that insurers and approved
				self-insurance trust funds remit surcharges collected from their insured
				providers to the board timely. The timeliness of surcharge remittances to the
				board by insurers and approved self-insurance trust funds shall not affect the
				effective date of fund coverage. However, the failure of insured health care
				providers to timely remit applicable surcharges to insurers and approved
				self-insurance trust funds for renewal may result in lapses of coverage with
				the fund.
AUTHORITY NOTE:
				  Promulgated in accordance with
				  R.S.
				  40:1299.44(D)(3).