La. Admin. Code tit. 37 § XIII-1123

Current through Register Vol. 50, No. 11, November 20, 2024

Section XIII-1123 - Service Companies

A. All service companies must file a request for approval by the commissioner and have a letter or certificate of approval from the commissioner prior to engaging in any service to a fund. All service companies performing services for group self-insurance funds on the effective date of this regulation shall file the request for approval and receive the letter or certificate of approval from the commissioner not later than March 1, 1993. The commissioner may request any information deemed necessary to establish the ability and financial strength of the service company to perform the required functions.

B. Except upon approval of the commissioner:

1. no service company or its employees, officers, or directors shall be an employee, officer, or director of, or have either a direct or indirect financial interest in, an administrator; and

2. no administrator or its employees, officers, or directors shall be an employee, officer, or director of, or have either a direct or indirect financial interest in, a service company.

C. The service contract shall state that, unless the commissioner approves otherwise, the service company shall handle, to their conclusion, all claims and other obligations incurred during the contract period.

La. Admin. Code tit. 37, § XIII-1123

Promulgated by the Department of Insurance, Office of the Commissioner, LR 18:1403 (December 1992).

AUTHORITY NOTE: Promulgated in accordance with R.S. 23:1193.