Current through Reg. 49, No. 38; September 20, 2024
(a) Definitions.
The following words and terms, when used in this section, shall have the
following meanings, unless the context clearly indicates otherwise.
(1) Termination of coverage--Occurs when
either party withdraws from a policy of workers' compensation insurance, either
by canceling the policy in the middle of its term, or by declining to renew the
policy on its anniversary date.
(2)
Rejection of the workers' compensation system--Occurs when a subscriber
terminates coverage and fails or refuses to purchase a policy of workers'
compensation insurance.
(b) Carrier's notice to the Industrial
Accident Board. The carrier shall notify the board when coverage is terminated
by filing Board Form IAB-9, "Cancellation or Non-Renewal Notice." The notice
shall be:
(1) filed in person or by certified
mail; and
(2) filed on or before
the effective date of termination.
(c) Carrier's notice to subscriber. The
carrier shall notify the subscriber when the carrier terminates coverage. No
notice is required when the subscriber terminates coverage. Notice to the
subscriber shall be:
(1) in
writing;
(2) sent by certified
mail; and
(3) mailed no later than
the 30th day before the effective date of termination; or
(4) mailed no later than the 10th day before
the effective date of termination if termination is due to:
(A) fraud in obtaining coverage;
(B) failure to pay a premium when payment is
due;
(C) an increase in the hazard
for which the subscriber seeks coverage that results from an action or omission
of the subscriber and that would produce an increase in the rate; or
(D) a determination by the commissioner of
insurance that coverage would be illegal or hazardous to the interests of
subscribers, creditors, or the general public.
(d) Effective date of termination of
coverage.
(1) Termination by the carrier shall
be effective on the latest of the following dates:
(A) on the 31st day after the carrier
notifies the subscriber as provided in subsection (c) of this section, or, if
the termination is due to one of the conditions set out in subsection (c)(4) of
this section, on the 11th day after the carrier notifies the subscriber as
provided in subsection (c) of this section;
(B) the day the carrier files notice of
termination with the board, as provided in subsection (b) of this section;
or
(C) the actual termination date
recited on the notice.
(2) Termination by the subscriber shall be
effective on the actual termination date recited on the notice.
(3) Termination shall be deemed effective on
the date a subsequent carrier files notice of inception of coverage for the
subscriber.
(e) Duties
of a subscriber who terminates coverage and rejects the workers' compensation
system.
(1) A subscriber who terminates
coverage and rejects the workers' compensation system shall, on or before the
effective date of termination:
(A) post copies
of notice of noncoverage, on a board-prescribed form, in three places around
each work site affected; and
(B)
file a copy of the notice of noncoverage with the board.
(2) Failure to comply renders the subscriber
liable for statutory benefits to injured employees.
