Louisiana Administrative Code › Title 37 - INSURANCE › Part XIII - Regulations › Chapter 1 - Regulation Number 31-Holding Company › Section XIII-129 - Transactions Subject to Prior Notice-Notice Filing

Current through Register Vol. 50, No. 6, June 20, 2024
A. An insurer required to give notice of a
				proposed transaction pursuant to
				R.S.
				22:691.7 shall furnish the required
				information on form D, hereby made a part of this regulation.
B. Agreements for cost sharing services and
				management services shall at a minimum and as applicable:
1. identify the person providing services and
				the nature of such services;
2. set
				forth the methods to allocate costs;
3. require timely settlement, not less
				frequently than on a quarterly basis, and compliance with the requirements in
				the Accounting Practices and Procedures Manual;
4. prohibit advancement of funds by the
				insurer to the affiliate except to pay for services defined in the
				agreement;
5. state that the
				insurer will maintain oversight for functions provided to the insurer by the
				affiliate and that the insurer will monitor services annually for quality
				assurance;
6. define records and
				data of the insurer to include all records and data developed or maintained
				under or related to the agreement that are otherwise the property of the
				insurer, in whatever form maintained, including, but not limited to, claims and
				claim files, policyholder lists, application files, litigation files, premium
				records, rate books, underwriting manuals, personnel records, financial records
				or similar records within the possession, custody or control of the
				affiliate;
7. specify that all
				records and data of the insurer are and remain the property of the insurer and;
a. are subject to control of the
				insurer;
b. are identifiable;
				and
c. are segregated from all
				other persons' records and data or are readily capable of segregation at no
				additional cost to the insurer;
8. state that all funds and invested assets
				of the insurer are the exclusive property of the insurer, held for the benefit
				of the insurer and are subject to the control of the insurer;
9. include standards for termination of the
				agreement with and without cause;
10. include provisions for indemnification of
				the insurer in the event of gross negligence or willful misconduct on the part
				of the affiliate providing the services and for any actions by the affiliate
				that violate provisions of the agreement required in
				§129.B 11 through
				§129.B 15 of this
				regulation;
11. specify that, if
				the insurer is placed in supervision, seizure, conservatorship or receivership
				pursuant to
				R.S.
				22:2001-2044 and
				R.S.
				22:731-737:
a. all of the rights of the insurer under the
				agreement extend to the receiver or commissioner to the extent permitted by
				R.S.
				22:691.7; and
b. all records and data of the insurer shall
				be identifiable and segregated from all other persons' records and data or
				readily capable of segregation at no additional cost to the receiver or the
				commissioner;
c. a complete set of
				records and data of the insurer will immediately be made available to the
				receiver or the commissioner, shall be made available in a usable format and
				shall be turned over to the receiver or commissioner immediately upon the
				receiver or the commissioner's request, and the cost to transfer data to the
				receiver or the commissioner shall be fair and reasonable; and
d. the affiliated person(s) will make
				available all employees essential to the operations of the insurer and the
				services associated therewith for the immediate continued performance of the
				essential services ordered or directed by the receiver or
				commissioner;
12. specify
				that the affiliate has no automatic right to terminate the agreement if the
				insurer is placed into supervision, seizure, conservatorship or receivership
				pursuant to
				R.S.
				22:2001-2044 and
				R.S.
				22:731-737;
13. specify that the affiliate will provide
				the essential services for a minimum period of time after termination of the
				agreement, if the insurer is placed into supervision, seizure, conservatorship
				or receivership pursuant to
				R.S.
				22:2001-2044 and
				R.S.
				22:731-737, as ordered or directed by the
				receiver or commissioner. Performance of the essential services will continue
				to be provided without regard to pre-receivership unpaid fees, so long as the
				affiliate continues to receive timely payment for post-receivership services
				rendered, and unless released by the receiver, commissioner or supervising
				court;
14. specify that the
				affiliate will continue to maintain any systems, programs, or other
				infrastructure notwithstanding supervision, a seizure, conservatorship or
				receivership pursuant to
				R.S.
				22:2001-2044 and
				R.S.
				22:731737, and will make them available to
				the receiver or commissioner as ordered or directed by the receiver or
				commissioner for so long as the affiliate continues to receive timely payment
				for post-receivership services rendered, and unless released by the receiver,
				commissioner, or supervising court; and
15. specify that, in furtherance of the
				cooperation between the receiver and the affected guaranty association(s) and
				subject to the receiver's authority over the insurer, if the insurer is placed
				into supervision, seizure, conservatorship or receivership pursuant to
				R.S.
				22:2001-2044 and
				R.S.
				22:731737, and portions of the insurer's
				policies or contracts are eligible for coverage by one or more guaranty
				associations, the affiliate's commitments under
				§129.B 11 through
				§129.B 14 of this
				regulation will extend to such guaranty association(s).