LAC 37:XIII.14507. Qualifications for Approval of an Assurance Organization

A. Any assurance organization that intends to be approved by the commissioner for authorization to transact business on behalf of a professional employer organization in the state of Louisiana shall apply for and obtain the approval of the commissioner. B. To be considered for approval, the assurance organization shall submit a written request for approval to the commissioner which shall include: 1. evidence that the assurance organization is independent and has an established program for the accreditation and financial assurance of a professional employer organization; 2. evidence that the assurance organization has documented qualifications, standards, procedures and financial assurance acceptable to the commissioner to certify the qualifications of a professional employer organization; 3. the agreement of the assurance organization to provide the information, compliance monitoring services, and level of financial assurance acceptable to the commissioner and to share with the department in a timely manner the information and supporting documentation provided to the assurance organization by a professional employer organization that equals or exceeds the requirements for registration or renewal of registration under R.S. 22:1741 through R.S. 22:1751; and 4. the agreement of the assurance organization that it will use a comprehensive online application, quarterly compliance reporting, and an ongoing compliance monitoring process for PEO accreditation that ensures that: a. the PEO is owned and operated by controlling persons with a history of honesty, law abidance, and responsible financial dealings both personally and in business; b. the PEO and all related entities under common control are financially solvent and have positive working capital sufficient to sustain operations; and c. the PEO and all related PEO entities meet the assurance organization’s ethical, financial, and operational standards, including compliance with applicable state and federal laws.