Louisiana Revised Statutes 23:1391 – A. It is hereby declared by the Legislature of Louisiana that an adequate market for workers’ compensation insurance is necessary to the economic welfare of the state and that withou
Terms Used In Louisiana Revised Statutes 23:1391
- Corporation: means the Louisiana Workers' Compensation Corporation. See Louisiana Revised Statutes 23:1392
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Good faith: means honesty in fact in any conduct of a transaction. See Louisiana Revised Statutes 23:1392
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Preferred risk: is a n employer who is a Louisiana resident, partnership, or corporation domiciled in this state whose workers' compensation insurance policy meets either of the following conditions:
(a) The prospective annual premium is less than five thousand dollars during the succeeding twelve months; the governing classifications of the policy would be in hazard group I, II, or III, as determined in retrospective rating plans approved by the commissioner of insurance; and the employer can demonstrate that its loss ratio has not exceeded seventy-hundredths during the most recent three policy years. See Louisiana Revised Statutes 23:1392
A. It is hereby declared by the Legislature of Louisiana that an adequate market for workers’ compensation insurance is necessary to the economic welfare of the state and that without such insurance, the orderly growth and development of the state would be severely impeded; that, furthermore, adequate insurance for workers’ compensation is necessary to enable employers to satisfy their legal obligation under La. Rev. Stat. 23:1168.
B. It is the purpose of the corporation to provide a residual market for those employers that have in good faith, but without success, sought workers’ compensation insurance in the voluntary market of insurance; to provide a competitive market for preferred risk policies as defined herein; and to insure that rates charged are adequate to provide solvency and self-funding of the corporation.
Acts 1991, No. 814, §1; eff. Nov. 20, 1991.