LAC Self-Insured Fund (LAC-SIF), formerly known as Louisiana Cotton Association Workers’ Compensation Self-Insurance Fund, was created in 1988 as an innovative alternative market for workers’ compensation coverage. The objective is to offer reasonable premiums, loss control services, and superior claims management.The LAC-SIF was formed for the sole purpose of providing workers’compensation coverage to North Louisiana employers engaged in the following operations:

1. Cotton Gin
2. Cotton Warehouse
3. Farming (Primarily field crops)
4. Farm Supply
5. Grain Elevator (Not terminals)

The program has grown solely by word-of-mouth. It doesn’t advertise nor does it pay commission to outside agents.

All annual premiums are paid in advance. LAC-SIF is managed by a stable conservative board of trustees, serving without compensation.

The LAC-SIF operates within the guidelines of Louisiana Workers’-Compensation Law and is regulated by the Department of Insurance.

An applicant will be required to:

• Review the Program Review and understand how a self-funded plan operates.
• Provide at least 3 years’ prior workers’ compensation history
  (loss ratio under 50%).
• Provide the names of at least two fund members that will recommend
  applicant for membership.
• Develop a minimum annual premium of $2,000
  (minimum payroll $15,000).

An applicant must agree with the following:

• Pay estimated annual premiums in a timely manner.
• Join the Louisiana Agricultural Corporation, L.L.C. ($200 annual dues).
• Comply with audit requirements.
• Comply with OSHA requirements as they apply to employee safety.

This self-insured program is not for everyone. It is limited to those Louisiana operations as pointed out in the Introduction. We can only provide those coverages that apply under the Louisiana Workers’ Compensation Act — state mandated benefits and employers liability.This fund is owned by and operated for the benefit of its members. All surplus money must be returned to the membership according to our trust document. The Fund operates on a calendar year basis. Therefore, annual premiums are payable in January each year.This program is not without additional risk to its members. We do not come under the Louisiana Guaranty Association. However, with the additional risk comes the opportunity for the reward — lower workers’ compensation cost. During the first twenty-two years of operation, this plan has saved its members more than $51,000,000!The long term success of this cooperative venture will be determined by how strongly each individual fund member exercises good hiring practices and works diligently at employee safety. In this program, “Safety Pays Big Dividends.”

Charles M. Noble
Rayville, LA

Alan “Al” Ray Ater
Ferriday, LA

Ted H. Schneider IV
Gilbert, LA

John F. Shackelford, III
Bonita, LA

Ted E. Oliver
Tallulah, LA

Tim Methvin
Natchitoches, LA

Curt A. Leake
Newellton, LA