Current through Register Vol. 48, No. 3, March 22, 2024
A.
An employer who, having elected to come under the Act, being at that time
exempt, is deemed to continue to operate under the Act until a Form 38, Notice
of Withdrawal from the Act, is filed with the Commission's Coverage and
Compliance Department and its employees are provided written notice in section
B below.
B. An employer shall
withdraw from the Act by filing a Form 38 with the Coverage and Compliance
Department as in subsection B(1), or, by notifying its insurance carrier as in
subsection B(2) below.
(1) The employer shall
complete and file with the Coverage and Compliance Department the original and
one copy of a Form 38.
(a) Upon receipt of a
completed, signed, and notarized Form 38, the Coverage and Compliance
Department will return to the employer an approved Form 38.
(b) The effective date of withdrawal, sixty
days from the date of filing, will appear on the form.
(c) The employer shall provide notice to its
employees before the effective date of withdrawal by posting the approved Form
38 conspicuously in the place of employment or by giving each employee,
personally, a copy of the approved Form 38.
(2) If the employer elects to withdraw from
the Act by notifying in writing its workers' compensation insurance carrier,
the employer's representative shall provide notice to the Commission by taking
the following action:
(a) Before the
effective date of the employer's insurance policy's cancellation, the insurance
carrier shall complete and file with the Coverage and Compliance Department the
original and one copy of a Form 38 signed by the employer.
(b) Upon receipt of a completed, signed, and
notarized Form 38, the Coverage and Compliance Department will return to the
insurance carrier an approved Form 38. The insurance carrier shall give the
approved Form 38 to the employer.
(c) The effective date of withdrawal, sixty
days from the date of filing, will appear on the form.
(d) The employer shall provide notice to its
employees as in B(1)(c) above.
C. The insurance carrier's filing a policy
cancellation or termination notice with the Coverage and Compliance Department
or the National Council on Compensation Insurance shall not operate as notice
of withdrawal from the Act. The insurance carrier shall file the Form 38 in
addition to a notice of termination required in R.67-405.
D. A nonexempt employer, becoming exempt from
the insurance provisions of this Chapter and the Act, may file an exemption
with the Coverage and Compliance Department as provided below:
(1) File a Form 38, an attached affidavit,
and supporting documentation with the Coverage and Compliance
Department.
(2) The affidavit and
supporting documentation must establish the employment and the employer are
exempt from the insurance provisions of the Act.
(3) The form is subject to approval by the
department if the supporting documentation establishes an exemption under the
Act.
(4) It is the employer's
responsibility to assure compliance with the insurance provisions of the Act.
(a) A Form 38 approved according to this
Regulation creates a rebuttable presumption of exemption from the
Act.
(b) An exemption established
by a Form 38 shall not prevent the department from investigating and, if
necessary, requesting prosecution of the employer.
(5) The Commission may impose the maximum
penalty and fine available against the employer who, although previously exempt
from the Act, then operates subject to the Act and fails to comply with the
insurance provisions of this Chapter and the Act.
