Historical and Legislative Underpinnings of Louisianas Largest Workers Compensation Insurer
HISTORICAL AND LEGISLATIVE UNDERPINNINGS OF LOUISIANAS LARGEST WORKERS COMPENSATION INSURER A. CREATION AND PURPOSE In 1990, an algorithm was at work in Louisiana that was destroying the Workers Compensation market. That algorithm sought to provide the solution to a longstanding problem in Louisiana (and in many other states); how do you insure employers who no insurer wants to insure on a voluntary basis? ... In the regular session of 1991, the legislature recognized these problems by the introduction and passage of a constitutional amendment (Act 1073)and companion legislation (Act 814) that would remake the rules as to the workers compensation insurance marketplace in Louisiana. ... It is hereby declared by the Legislature of Louisiana that an adequate market for workers compensation insurance is necessart 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, furtherm0ore, adequate insurance for workers compensation is necessary to enable employers to satisfy their legal obligation under R. ... 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 compesation 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.