Louisiana Administrative Code › Title 40 - LABOR AND EMPLOYMENT › Part I - Workers' Compensation Administration › Subpart 1 - General Administration › Chapter 17 - Fiscal Responsibility Unit › Section I-1709 - Acceptable Securities or Surety

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				  The securities acceptable to the Office of Workers' Compensation Administration
				  as a security deposit shall be U.S. Government Bonds; irrevocable letters of
				  credit issued by a federal or state bank pre-approved by the office of Workers'
				  Compensation; Surety Bonds in a form prescribed by the Office which are issued
				  by any corporate surety which meets the qualifications prescribed in
				  §1709 B; and
				  other forms of security deemed acceptable by the director of the Office of
				  Workers' Compensation. Self-insurers must have all funded securities made
				  payable to the Office of Workers' Compensation.
B. Any corporate surety, to be eligible for
				  writing self-insurers' bonds in the state of Louisiana, shall be an admitted or
				  approved carrier by the insurance commissioner of the state of Louisiana to
				  transact such a business in the state, shall have its latest financial
				  statement on file with the insurance commissioner and the Office of Workers'
				  Compensation Administration; and shall at all times show assets, including
				  surplus to policyholders, at least equal to the latest Insurance Commission
				  requirements for admission of a new company to do business in the state. The
				  policyholders and financial ratings, as shown in the most current issue of
				  Best's Key Rating Guide, Property-Casualty, shall not be less than "B" and
				  "IV," respectively. In the event a company is not rated by Best's, a corporate
				  surety may be approved at the discretion of the office.
C. All such securities shall be filed with
				  the Office of Workers' Compensation for deposit under custody receipt. The
				  office shall be authorized to sell and/or collect, in the case of default of
				  the employer or group, such amount thereof as shall yield sufficient funds to
				  pay compensation liabilities. The office shall likewise be authorized to bring
				  suit upon any surety bond so posted, to procure prompt payment of compensation
				  liabilities. Interest accruing on any negotiable securities so deposited shall
				  be collected and transmitted to the depositor, provided he is not in default in
				  the payment of compensation or the annual premium tax. All deposits shall
				  remain in the custody of the office until such time as the workers'
				  compensation claims, which the deposits secure, have been fully
				  satisfied.
D. Any securities held
				  by the office may be exchanged or replaced by the depositor with other
				  securities of like nature and amount. Any surety bond may be exchanged or
				  replaced with another surety bond, provided the required 30 days notice of
				  termination of liability is given to the office. Whenever an employer
				  discontinues business in the state or desires to terminate his status as a
				  self-insurer, or desires to replace securities with a surety bond, he shall so
				  notify the office and may recover the securities deposited with the office upon
				  posting in lieu thereof a special release bond issued by a corporate surety in
				  an amount equal to the total value of such securities. The special release bond
				  shall cover all existing liabilities under the Workers' Compensation Act and
				  shall remain in force in accordance with the prescriptive and preemptive period
				  provided at
				  R.S.
				  23:1209, and until such time, to be
				  determined by the office, that all obligations under the Act have fully
				  discharged.
AUTHORITY NOTE:
					 Promulgated in accordance with
					 R.S.
					 23:1168 of Act 938 of 1988 Regular
					 Session.