La. Admin. Code tit. 37 § XIII-14507

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

Section XIII-14507 - Qualifications for Approval of an Assurance Organization

A. Any assurance organization that intends to be approved by the commissioner for authorization to transact business on behalf of a professional employer organization in the state of Louisiana shall apply for and obtain the approval of the commissioner.

B. To be considered for approval, the assurance organization shall submit a written request for approval to the commissioner which shall include:

1. evidence that the assurance organization is independent and has an established program for the accreditation and financial assurance of a professional employer organization;

2. evidence that the assurance organization has documented qualifications, standards, procedures and financial assurance acceptable to the commissioner to certify the qualifications of a professional employer organization;

3. the agreement of the assurance organization to provide the information, compliance monitoring services, and level of financial assurance acceptable to the commissioner and to share with the department in a timely manner the information and supporting documentation provided to the assurance organization by a professional employer organization that equals or exceeds the requirements for registration or renewal of registration under R.S. 22:1741 through R.S. 22:1751; and

4. the agreement of the assurance organization that it will use a comprehensive online application, quarterly compliance reporting, and an ongoing compliance monitoring process for PEO accreditation that ensures that:

a. the PEO is owned and operated by controlling persons with a history of honesty, law abidance, and responsible financial dealings both personally and in business;

b. the PEO and all related entities under common control are financially solvent and have positive working capital sufficient to sustain operations; and

c. the PEO and all related PEO entities meet the assurance organizations ethical, financial, and operational standards, including compliance with applicable state and federal laws.

La. Admin. Code tit. 37, § XIII-14507

Promulgated by the Department of Insurance, Office of the Commissioner, LR 40:2592 (12/1/2014).

AUTHORITY NOTE: Promulgated in accordance with R.S. 22:11, R.S. 22:1750, R.S. 22:1751, and the Administrative Procedure Act, R.S. 49:950 et seq.