§1858. Authority of department
A. No fund shall become operative until it is issued a certificate of authority by the
department. Except for the certificate of authority, the department shall keep confidential all
documents and records associated with the provisions of this Section.
B. The certificate of authority shall be continuous until revoked or suspended by the
department, or until it is voluntarily surrendered by the fund.
C.
(1)The department may examine the affairs, books, transactions, work papers,
files, accounts, records, assets, and liabilities of the fund to determine compliance with this
Chapter and pursuant to any rules and regulations promulgated by the department or orders
and directives issued by the department. In addition, to the extent necessary and material to
the ex
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§1858. Authority of department
A. No fund shall become operative until it is issued a certificate of authority by the
department. Except for the certificate of authority, the department shall keep confidential all
documents and records associated with the provisions of this Section.
B. The certificate of authority shall be continuous until revoked or suspended by the
department, or until it is voluntarily surrendered by the fund.
C.(1) The department may examine the affairs, books, transactions, work papers,
files, accounts, records, assets, and liabilities of the fund to determine compliance with this
Chapter and pursuant to any rules and regulations promulgated by the department or orders
and directives issued by the department. In addition, to the extent necessary and material to
the examination of the fund, the department may examine the affairs, books, transactions,
work papers, files, accounts, and records of the fund's administrator, service company,
certified public accountant, or actuary generated in the course of transacting business on
behalf of the group self-insurance fund being examined. All examinations shall be conducted
in accordance with the provisions of this Chapter. The reasonable expenses of the
examinations shall be paid by the fund.
(2) Upon the request of the department, the group self-insurance fund established
pursuant to this Chapter shall cause a rate review to be conducted by a national independent
actuarial firm, provided that the department shall not make more than two requests in any
calendar year for a rate review pursuant to the provisions of this Subsection. The firm shall
report its findings to the department.
(3) All work papers, recorded information, documents, information, and copies
thereof produced by, obtained by, or disclosed to the department or any other person, in
accordance with the authority of the department pursuant to this Chapter, shall be given
confidential treatment and are not subject to subpoena, except in the following
circumstances:
(a) The information sought has been provided pursuant to an examination, as
authorized by R.S. 12:1863(C), or provided in examination reports, as required by R.S.
12:1864(I).
(b) The documents sought are audited financial statements or financial documents
which have been filed with the department.
D. The department may issue cease and desist orders and suspend or revoke the
certificate of authority of the fund which the department determines is not in compliance
with this Chapter, any rule promulgated by the department in accordance with the
Administrative Procedure Act, or any order or directive issued by the department. A cease
and desist order may include a prohibition on writing or incurring any new or renewal
business by the fund.
E. If the department determines that the fund or any trustee, member, officer,
director, or employee of the fund failed to comply with the provisions of this Chapter, any
applicable laws relating to the fund, any rule promulgated by the department, or any order
or directive issued by the department, the department may levy a fine not to exceed two
thousand dollars for each violation. If the conduct for which a previous fine was levied by
the department is committed again, the department may levy a fine not to exceed four
thousand dollars. The enforcement of any fine and any appeal from a fine shall be conducted
in accordance with the Administrative Procedure Act.
F. The division of administrative law shall conduct a hearing in accordance with R.S.
22:2191.
G. The provisions of this Section do not prohibit the legislative auditor from
reviewing records and conducting an audit in accordance with R.S. 24:513.
H.(1) The department may order that the group self-insurance fund submit a
corrective action plan to the department for its approval to remediate any noncompliance or
financial issues affecting the fund.
(2) The corrective action plan shall be submitted by the fund to the department for
its approval and include standards, time frames, and other parameters acceptable to the
department. Any corrective action plan that is submitted to the department by the fund shall
be kept confidential by the department.
(3) The corrective action plan may include any of the following:
(a) Mandatory training.
(b) Onsite or offsite monitoring and supervision of the activities of the fund for a
specified period of time to determine progress regarding correction of deficiencies.
(c) The submission of written progress reports.
(d) The institution of measures to conserve or generate additional funding for the
fund.
(e) The imposition of fines and penalties for any misconduct which contributed to
the need for the imposition of the corrective action plan.
(4) Failure by the group self-insurance fund to comply with a corrective action plan
approved by the department may result in any of the following:
(a) The imposition of fines and penalties.
(b) Revocation of the fund's certificate of authority.
(c) Placement of the fund into administrative supervision pursuant to R.S. 22:731
et seq.
(d) Placement of the fund into receivership pursuant to R.S. 22:2001 et seq.