La. Admin. Code tit. 37 § XIII-19303

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

Section XIII-19303 - Excess Insurance or Reinsurance

A. All funds shall maintain specific excess insurance or reinsurance in the amount of at least $2,000,000 per occurrence and aggregate excess insurance or reinsurance of at least $2,000,000.

B. The maximum retention allowed for a fund's specific excess policy shall be approved by the department.

1. A fund shall submit a feasibility study prepared by a qualified actuary which analyzes the impact the specific retention on the fund.

2. No fund shall secure a retention which in the commissioner's opinion is not actuarially sound.

3. The commissioner shall deny the use of a retention if he finds that the higher retention will have a significant adverse effect on the financial condition of the fund.

C. The fund shall secure an aggregate limit of at least 20 percent of the annual premium of the fund for the term of the policy. The retention of the aggregate policy shall be subject to the approval of the commissioner.

La. Admin. Code tit. 37, § XIII-19303

Promulgated by the Department of Insurance, Office of the Commissioner, LR 491411 (8/1/2023).

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:4351.3.