RS 22:550.17

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RS 22:550.17

§550.17. Reinsurance; credit for reserves on risks or portions of risks in certain circumstances; plan for workers' compensation deemed reinsurance in certain circumstances

A. A captive insurance company shall not provide reinsurance on risks ceded by any other insurer without prior written approval of the commissioner.

B. A captive insurance company may take credit for reserves on risks or portions of risks ceded to a reinsurer, as authorized for domestic insurance companies, and shall be in compliance with Subpart E of Part III of this Chapter, R.S. 22:651 et seq.

C. Subject to the approval of the commissioner, a captive insurance company may take credit for reserves on risks or portions of risks ceded to a reinsurer, or to a pool, an exchange, or an association acting as a reinsurer, that does not comply with the requirements of Subsection B of this Section. The commissioner may require such documents, financial information, or other evidence as he determines necessary to show that such reinsurer, pool, exchange, or association will be able to provide adequate security for its financial obligations.

The commissioner may deny authorization or impose any limitations on the activities of such reinsurer, pool, exchange, or association that, in his judgment, are necessary and proper to provide adequate security for the ceding captive insurance company and for the protection and benefit of the general public.

D. For the purposes of this Subpart, insurance provided by a captive insurance company of any plan for workers' compensation of its parent and affiliated companies which is certified or otherwise qualified in the state in which the insurance is provided as a self-insurance plan shall be deemed to be reinsurance.

Acts 2008, No. 403, §1, eff. Jan. 1, 2009; Redesignated byActs 2009, No. 503, §3; Acts 2013, No. 23, §1, eff. May 23, 2013; Acts 2025, No. 313, §2.