Code of Colorado Regulations
1100 - Department of Labor and Employment
1101 - Division of Workers' Compensation
7 CCR 1101-3 Rules 1-17 - Rules 1 - 17: RULES OF PROCEDURE (Rule 17 exhibits published separately)
7 CCR 1101-3-17-3 - Insurance Coverage

Universal Citation: 1100 CO Code Regs 7 CCR 1101-3-17-3

Current through Register Vol. 47, No. 17, September 10, 2024

3-1 REPORTING REQUIREMENTS FOR INSURANCE CARRIERS AND EMPLOYERS

(A) The Division designates the National Council on Compensation Insurance, Inc. (NCCI) as its agent to receive, process, and make available to the Division, all the required notices. Insurance carriers shall transmit this data and all other data elements in the electronic format as directed by the Division through NCCI.

(B) Every insurance carrier shall advise the Division, by filing with NCCI, notice of the issuance or renewal of insurance coverage within thirty (30) calendar days of the effective date of coverage. The insurance carrier shall ensure that every policy reported to NCCI includes the correct federal employer identification number ("FEIN") or other taxpayer identification number(s) for each covered employer, employer's business operation, client company, and/or employing entity.

(C) Every insurance carrier shall advise the Division, by filing with NCCI, final notice of the cancellation of insurance coverage no later than thirty (30) calendar days after coverage is actually canceled. This subsection does not pertain to the preliminary notice of cancellation referenced in § 8-44-110.

(D) Every employer shall provide on request to its insurance carrier all FEINs or other taxpayer identification number(s) for all the employer's business operations, client companies, and/or any other similar employing entities, in Colorado to which the insurance applies. All changes in FEIN or other taxpayer identification numbers shall be reported immediately to the insurance carrier. The insurance carrier shall report all changes in FEINs and taxpayer identification numbers to NCCI within thirty (30) calendar days of receipt.

(E) Every insurance carrier shall provide to the division all certificates of insurance requested by the division, unless the insurer denies coverage for the requested employer, employer's business operation, client company, and/or employing entity. Certificates issued to the division shall contain, at a minimum, the employer's name, employer's address, employer's FEIN or other taxpayer identification number, insurer's name, insurer's address, policy number, and effective dates of the policy. The insurer shall provide such certificate(s) or notify the division of the denial of coverage within five (5) days of the request.

(F) For purposes of the performance of the Director's responsibilities under § 8-43-409, the prehearing conference and any hearing that the Director may determine necessary may be conducted by any competent person appointed by the Director or by any other person designated by the Director.

3-2 CARRIER REPRESENTATIVE

Every insurance carrier shall notify the Division's designated agent of the name, address and telephone number of its representative responsible for reporting coverage information. This information shall be provided within thirty (30) days upon request of either the Division or its agent, or within thirty (30) days of a change in the information.

3-3 SELF-INSURED EMPLOYERS

(A) Any pool authorized to self-insure shall advise the Division in writing of the effective date of self-insurance, the name and address of the pool administrator and the federal employer identification number of each covered member. This information shall be provided within thirty (30) days upon request of either the Division or its agent, or within thirty (30) days of a change in the information.

(B) All individual self-insurance permit holders shall advise the Division in writing of the federal employer identification number of the permit holder as well as of all covered subsidiaries. This information shall be provided within thirty (30) days upon request of either the Division or its agent, or within thirty (30) days of a change in the information.

3-4 Unreported/erroneous policies - insurance carriers

(A) Every insurance carrier who fails to comply with the reporting requirements of paragraphs (a) through (e) of rule 3-1 shall be subject to penalties.

(B) For certificates of workers' compensation insurance or other documentation that has been received by the division indicating policies that have not been reported by the insurer to NCCI or policies that contain errors in an employer's identifying information, a list of such policies will be generated by the division and provided to each insurer containing all unreported or inaccurate policies. The insurer shall have fifteen (15) days from the date the list is issued to report/correct each listed policy to NCCI, or provide to the division a written explanation of why the policy cannot be reported/corrected to NCCI.

(C) If, within fifteen (15) days following the issuance of the division's list of unreported or erroneous policies, the insurer fails to either report a listed policy to NCCI or provide a written explanation to the division of why the policy cannot be corrected or reported to NCCI, a deficiency notice and order to comply may be issued to the insurer for all outstanding unreported or erroneous policies. The insurer shall then have twenty (20) days from the date of issuance of the deficiency notice and order to comply to perform one of the following actions:
(1) Report a previously unreported policy to NCCI.

(2) File a corrected endorsement with NCCI in the event the policy information previously submitted to NCCI is incorrect.

(3) Provide a written explanation to the division of why the policy cannot be reported to or corrected with NCCI.

3-5 ELECTION TO REJECT COVERAGE

(A) An officer of a corporation or a member of a Limited Liability Company ("LLC") who elects to reject workers' compensation coverage shall complete and submit the division prescribed rejection of coverage form to the division if all the company's corporate officers and LLC members choose to reject coverage and the corporation or LLC has no employees other than the corporate officers or LLC members. If the corporation or LLC has workers' compensation insurance, the corporate officer(s) or LLC member(s) shall submit the division prescribed form or the insurance carrier's substantially equivalent form to the workers' compensation insurance carrier.

(B) The owner(s) of a sole proprietorship or partnership performing construction work who elect(s) to reject workers' compensation coverage shall complete and submit the division prescribed rejection of coverage form to the division if the sole proprietorship or partnership has no employees other than the owner(s). If the sole proprietorship or partnership has workers' compensation insurance, such owner(s) shall submit the division prescribed form or the insurance carrier's substantially equivalent form to the workers' compensation insurance carrier.

(C) The Notice of Election to Reject Coverage shall become effective the next business day following receipt of the notice by the insurance carrier or, if none, by the Division.

3-6 NOTICES TO EMPLOYEES

Every employer shall continuously post a notice to employees in one or more conspicuous places at all of the employer's work sites advising employees that the employer is insured for workers' compensation as required by law, identifying the name of the employer's insurance carrier or stating that the employer is self-insured. Such notice shall be on the division form WC 50. For non-self-insured employers, the required notice shall be supplied by the insurer.

3-7 FINES FOR DEFAULTING EMPLOYER

(A) Following the Director's determination that an employer has failed to obtain the required insurance or has failed to keep such insurance in force or has allowed the insurance to lapse or has failed to renew such insurance, the Director will impose fines on the defaulting employer and/or will compel the employer to cease and desist its business operations.

(B) For any period beginning three years prior to the date the employer is sent a notice to show compliance and where such employer has not previously been sent a notice to show compliance, the director shall impose a fine of five dollars ($5.00) per day for each day of the employer's default until the date of issuance of the notice to show compliance. If the employer's default continues after the issuance of the notice to show compliance, fines shall be issued in accordance with the following schedule until the employer complies with the requirements of the workers' compensation act regarding insurance or until further order of the director:

1-10 DAYS

$10/DAY

11-20 DAYS

$30/DAY

21-30 DAYS

$50/DAY

31-40 DAYS

$100/DAY

41+ DAYS

$250/DAY

(C) Where an employer provides the director with information related to its ability to pay the fine, the director may, if appropriate, modify the fine structure in rule 3-6(b).

(D) For the Director's finding of an employer's second and all subsequent defaults in its insurance obligations, daily fines from $250/day up to $500/day for each day of default will be until the employer complies with the requirements of the Workers' Compensation Act regarding insurance or until further order of the Director.

Disclaimer: These regulations may not be the most recent version. Colorado may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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