La. Admin. Code tit. 40 § XIII-126

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

Section XIII-126 - Insurance Costs

A. Costs of insurance in connection with the general conduct of activities under the program, including but not limited to workers' compensation insurance, insurance for injuries suffered by participants who are not covered by workers' compensation, personal liability insurance for PIC members, and insurance covering the risk of loss of or damage to JTPA property, are allowable subject to the following limitations.

1. Types and extent and cost of coverage will be in accordance with general state and local policy and sound business practice.

2. Contributions to a reserve for a self-insurance program approved by the recipient are allowable to the extent that the type of coverage, extent of coverage, and the rates and premiums would have been allowed had the insurance been purchased to cover the risks.

3. Actual losses which could have been covered by permissible insurance (through an approved self-insurance program or otherwise) are unallowable unless expressly provided for in the grant agreement. However, costs incurred because of losses not covered under nominal deductible insurance coverage provided in keeping with sound management practice, and minor losses not covered by insurance, such as spoilage, breakage and disappearance of small hand tools which occur in the ordinary course of operations, are allowable.

La. Admin. Code tit. 40, § XIII-126

Promulgated by the Department of Labor, Office of Labor, LR 19:1588 (December 1993).

AUTHORITY NOTE: Promulgated in accordance with R.S. 23:2022.