LAC 37:XIII.16915. Due Diligence

A. Stop loss or excess insurers shall exercise due diligence in ascertaining the legitimacy or authority of the underlying group health plan before issuing coverage. This shall include but not be limited to ensuring that the underlying plan is not a self-insured multiple employer welfare arrangement pursuant to 29 U.S.C. §1002(40), unless the underlying plan is authorized to do business in this state as a self-insurer and meets the requirements of R.S. 22:452.