Louisiana § 39:1536 Assessment of premiums

Louisiana Statutes

§ 39:1536 — Assessment of premiums

Louisiana·Title 39 Procurement and Contract

§1536. Assessment of premiums A.

(1)The office of risk management shall assess premiums to each agency based on its actual loss experience and exposure levels for both self-insured and commercial coverage. Such assessment may be on a retrospective basis.

(2)For the purposes of this Section, the term "agency" for higher education entities shall mean each individual board, institution, or entity within postsecondary education and the administration and each individual hospital within the Louisiana State University Health Sciences Center health care services division. B.

(1)Any agency which has undergone a loss prevention audit by the office of risk management and has received certification from the office of risk management as being in compliance with state law and loss prevention standard

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§1536. Assessment of premiums
A.(1) The office of risk management shall assess premiums to each agency based on
its actual loss experience and exposure levels for both self-insured and commercial coverage.
Such assessment may be on a retrospective basis.
(2) For the purposes of this Section, the term "agency" for higher education entities
shall mean each individual board, institution, or entity within postsecondary education and
the administration and each individual hospital within the Louisiana State University Health
Sciences Center health care services division.
B.(1) Any agency which has undergone a loss prevention audit by the office of risk
management and has received certification from the office of risk management as being in
compliance with state law and loss prevention standards prescribed by the office of risk
management shall receive a credit to be applied to the agency's annual self-insured premium
per line of insurance coverage, excluding the coverages for road hazards and medical
malpractice, equal to five percent of the agency's total annual self-insured premium paid per
line of coverage.
(2) An agency which has failed to receive certification after undergoing a loss
prevention audit by the office of risk management shall be liable for a penalty of five percent
of the agency's total annual self-insured premium paid per line of coverage, excluding the
coverages for road hazards and medical malpractice. The office of risk management shall
notify such agency of the penalty at least sixty days prior to assessing the penalty. The
agency may, within ten days of its receipt of such notification, request that the Joint
Legislative Committee on the Budget review the potential impact of the penalty on the
agency. If the committee conducts a hearing on the request within forty-five days from
receipt of the request, the committee may nullify the penalty for such agency. Such penalty
shall be payable at the time of each premium payment, and shall be used by the office of risk
management for claims payment.

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Legislative History

Added by Acts 1980, No. 520, §1, eff. July 1, 1980. Acts 1983, No. 110, §1; Acts 1998, 1st Ex. Sess., No. 11, §2; Acts 1999, No. 909, §1, eff. July 1, 1999; Acts 2022, No. 271, §3.