Louisiana Administrative Code › Title 37 - INSURANCE › Part XIII - Regulations › Chapter 11 - Regulation Number 42-Group Self-Insurance Funds › Section XIII-1101 - Definitions

Current through Register Vol. 50, No. 6, June 20, 2024
A. When used in
				this regulation, the following words or terms shall have the following meaning.
Administrator
- an individual, partnership,
				  or corporation engaged by a group self-insurance fund to carry out the policies
				  of the trustees of the fund and to provide day-to-day management of the
				  fund.
Aggregate Losses
- the amount of all claims,
				  including reserves for loss development and losses incurred but not reported,
				  which exceeds the loss fund.
Contingent Liability
- the amount that a
				  group self-insurance fund may be obligated to pay in excess of a given fund
				  year's normal premium collected or on hand.
Department
- the Louisiana Department of
				  Insurance.
Fiscal Agent
- an individual, partnership, or
				  corporation engaged by a group self-insurance fund to carry out the fiscal
				  policies of the fund, invest and disburse assets, and oversee the financial
				  matters of the fund. An administrator may be a fiscal agent.
Gross Premium
- premium determined by
				  multiplying the payroll (segregated into the proper workers' compensation job
				  classifications) by the manual premium rates approved by the
				  commissioner.
Group Self-Insurance Fund or Fund
- employers
				  who enter into agreements to pool their workers compensation liabilities in
				  accordance with Louisiana Revised Statutes 23:1195.
Incurred but not Reported Reserves
- a
				  reserve established which estimates the incurred loss of claims whose existence
				  is unknown by the fund or claims which have been reported but not recorded on
				  the books of the fund.
Insolvency
- the condition existing when the
				  fund's liabilities before member distribution payable or dividend payable are
				  greater than the fund's assets determined in accordance with generally accepted
				  accounting principles as delineated in the fund's financial statement audited
				  by an independent certified public accountant. For the purposes of determining
				  insolvency, assets will not include intangible property, such as patents, trade
				  names, or goodwill.
Loss Development
- the change in incurred
				  loss from one point in time to another.
Loss Development Reserve
- any amount needed
				  in a given fund year, in addition to current loss reserves, to fund future loss
				  development.
Loss Fund
- the retention under the terms of
				  an aggregate excess contract, or if no aggregate excess is purchased, the
				  amount remaining from normal premium in each fund year after all necessary
				  expenses are paid.
Normal Premium
- standard premium less
				  allowed discount.
Qualified Actuary-a person who:
a. meets the basic education, experience and
				continuing education requirements of the Specific Qualification Standard for
				Statements of Actuarial Opinion, NAIC Property and Casualty Annual Statement,
				as set forth in the Qualification Standards for Actuaries Issuing Statements of
				Actuarial Opinion in the United States (U.S. Qualifications Standards),
				promulgated by the American Academy of Actuaries (Academy) and as adopted in
				Chapter 161 of this Part;
b. has
				obtained and maintains an Accepted Actuarial Designation; and
c. is a member of a professional actuarial
				association that requires adherence to the same Code of Professional Conduct
				promulgated by the Academy, requires adherence to the U.S. Qualification
				Standards, and participates in the Actuarial Board for Counseling and
				Discipline when its members are practicing in the U.S.
Standard Premium
- gross premium adjusted by
				  experience modifiers.
Surplus
- assets of a fund in excess of loss
				  reserves, actual and contingent liabilities and loss development reserves in
				  all fund years.