Bulletin No November 7, 2014

Transcription

1 WCIRB Bulletin Bulletin No November 7, Market Street, Suite 800 San Francisco, CA Fax California Standard Forms Amendments to California Standard Form Information Page (WC A) and Policy Amendatory Endorsement California (WC B) California Senate Bill No. 251 amended various parts of the California Insurance Code (CIC) effective January 1, 2014, including a revision to CIC 38.5 by adding subsection (b), which, in relevant part, requires that insurer s offers of renewal for a workers compensation policy to policyholders may be provided by electronic transmission only if the insurer obtains the policyholder s consent to such transmission and includes the insured s address on the policy declaration page. To comply with the revision to CIC 38.5, the WCIRB submitted revised versions of California Standard Form WC A, Information Page, and WC B, Policy Amendatory Endorsement California to the Insurance Commissioner for approval on behalf of its membership, and the Commissioner approved them as Standard Forms for use in California effective immediately. Form WC A, Information Page, has been revised to add a space to enter the policyholder s address for insurers who intend to electronically transmit an offer for renewal of a policy to a policyholder. Correspondingly, Form WC B, Policy Amendatory Endorsement California, has been revised to ensure compliance with California law when an insurer using a non-standard Information Page intends to electronically transmit an offer of renewal to a policyholder. Additionally the Notes for each form have been revised to reference the statutory authority and to state that use of the address is optional. For your ease of reference, two copies of each of the revised endorsement forms are enclosed. One copy identifies the deletions (stricken) and additions (underscored), and the other is in final form. As with any Standard Form, an insurer may file these forms with the WCIRB and may use them after receiving the WCIRB s notification to the Commissioner indicating that the insurer intends to use the forms. When filing a Standard Form with the WCIRB, each insurer must submit a single original copy of the Standard Form, a letter requesting authorization to use the form, and a self-addressed stamped envelope. Affiliated insurers must each make a separate filing. THE ATTACHED FORMS ARE ADVISORY ONLY AND INSURERS ARE THEREFORE NOT OBLIGATED OR REQUIRED TO USE THEM. Insurers that choose not to use these Standard Forms may, but are not obligated to, prepare their own form. Insurers choosing to prepare their own forms must submit them in triplicate to the WCIRB along with a Document Submission Formset, for transmission to, and approval by, the Insurance Commissioner before using the forms. Attachments: Policy Form (WC B) (with strikeouts) Policy Form (WC B) (final version) Policy Form (WC C) (with strikeouts) Policy Form (WC C) (final version) 2014 Workers Compensation Insurance Rating Bureau of California. All Rights Reserved. See for more information.

2 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC AB (Ed ) INFORMATION PAGE Blank Insurance Company Insurer ID No(s). Policy No. Prior Policy No. 1. Named Insured: Individual LLC Mailing Address: Address: Corporation LLP FEIN: Partnership Other: Intra/Interstate Risk ID No. Other workplaces not shown above: 2. The policy period is from to 12:01 A.M. standard time at the insured s mailing address. 3. A. Workers Compensation Insurance: Part One of the policy applies to the Workers Compensation Law of the states listed here: B. Employers Liability Insurance: Part Two of the policy applies to work in each state listed in Item 3A. The limits of our liability under Part Two are: Bodily Injury by Accident $ each accident Bodily Injury by Disease $ policy limit Bodily Injury by Disease $ each employee C. Other States Insurance: Part Three of the policy applies to the states, if any, listed here: D. This policy includes these endorsements and schedules: 4. The premium for this policy will be determined by our Manual of Rules, Classifications, Rates and Rating Plans. All information required below is subject to verification and change by audit. Premium Basis Rate Per Estimated Code Estimated Annual $100 of Annual No. Classifications Remuneration Remuneration Premium See Information Page Notes on reverse. Experience Modification Total Estimated Annual Premium $ Minimum Premium $ Deposit Premium $ Premium Adjustment Period: Countersigned By Producer Information: Servicing/Issuing Office Date

3 Information Page Notes Information Page Form WC A has been designed to accommodate the requirements of all jurisdictions, including California. An insurer may file Information Page Form WC A for approval by the Department of Insurance, provided it meets the specifications contained herein. Information Page Form WC A reflects several items that are required to be shown in California, but are not necessary in other jurisdictions, and omits several items that are not required in California, but may be required in other jurisdictions. 1. The name of the insurer is to be shown prominently on the Information Page. This is especially critical for multi-company groups that use a single policy form for all or several companies within the group. 2. The policy number, including prefix and suffix, must be shown in the space reserved above Item 1 on the Information Page. It must be a unique number applying only to one policy and shall remain constant throughout the policy period. The policy number shall be used on all endorsements and relevant documents issued subsequent to the policy. 3. The prior policy number must be shown on the renewal policy Information Page. New business must be designated as new in the space provided for the prior policy number. A rewritten policy must show the prior policy number on the Information Page preceded by the phrase rewrite of or the acronym R/W. 4. The insurer ID number(s) may include the insurer s 3-digit California ID number and/or the 5-digit NCCI number. 5. The complete legal name and complete address of all the insureds, including postal zip code, must be shown in Item 1. Instructions for reporting the named insured are contained in Instructions for Reporting the Names of Insured on Workers Compensation Policies Supplement to the California Workers Compensation Uniform Statistical Reporting Plan. 6. The insured s address must be included if the insurer intends to electronically transmit an offer of renewal for a workers compensation insurance policy to the insured. (California Insurance Code 38.5 (b)) The type of entity insured, such as individual, corporation, partnership, LLC, or LLP, must be shown on the Information Page. (See Instructions for Reporting the Names of Insured on Workers Compensation Policies Supplement to the California Workers Compensation Uniform Statistical Reporting Plan for additional instructions.) 7.8. The FEIN for each insured may be shown in Item 1. If an insured does not have a FEIN assigned, report The California Bureau number, if known, may be inserted in the space provided for the intrastate/interstate risk ID number The inception date and hour and expiration date and hour of coverage must be shown in Item 2. The hour of inception and expiration must be 12:01 A.M List in Item 3A all states in which Workers Compensation Insurance coverage is to be provided With respect to employers liability, the limits of liability must be shown separately for bodily injury by accident and bodily injury by disease in Item 3B The state for which Other States Insurance coverage is provided may be shown in Item 3C, either by name or by designation. An insurer may not designate or name a state listed in 3A, a monopolistic state fund state, or a state where the insurer will not provide Other States Insurance coverage. If California is shown in Item 3C and the insurer learns that the insured is conducting operations in California, then the insurer must delete California from Item 3C and, in the event the insurer is providing Workers Compensation Insurance coverage in California, add California to Item 3A The form number of every endorsement that is not attached to the daily submitted to the Bureau must be listed in Item 3D. It is only permitted to list a form number in lieu of submitting the endorsement if the entire endorsement is preprinted. (See Part 2, Section II, Rule 3, of the California Workers Compensation Uniform Statistical Reporting Plan.) Each classification applicable to the insured s operations, the classification phraseology and the company rates for each classification must be shown in Item 4 or by endorsement. If operations are conducted at two or more locations and the classifications, other than Standard Exceptions, applicable at each location are not identical, then the classification assignments must be shown by location The Bureau-published experience modification must be clearly identified on the Information Page or by endorsement The total estimated annual premium and the California estimated annual premium may be shown on the Information Page or by endorsement The total deposit premium and the California deposit premium may be shown on the Information Page or by endorsement The premium adjustment period may be shown on the Information Page or by endorsement The minimum premium may be shown on the Information Page or by endorsement The location of the servicing/issuing office must be shown on the Information Page Other premium charges, including company surcharge, must be clearly identified on the Information Page or by endorsement The following information, while not mandatory, may be shown on the Information Page: Insurer ID number(s); intrastate/interstate risk ID number; producer information; estimated payroll by classification; estimated annual premium by classification; and the date the policy is issued or countersigned Each insurer may use its own method of execution and place the execution clause at the end of the Information Page, at the end of the standard policy, or on a policy jacket. A copy of every Information Page must be submitted to the Bureau within 60 days after the inception date of a policy if the policy provides workers compensation coverage in the State of California.

4 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC B (Ed ) INFORMATION PAGE Blank Insurance Company Insurer ID No(s). Policy No. Prior Policy No. 1. Named Insured: Individual LLC Mailing Address: Address: Corporation LLP FEIN: Partnership Other: Intra/Interstate Risk ID No. Other workplaces not shown above: 2. The policy period is from to 12:01 A.M. standard time at the insured s mailing address. 3. A. Workers Compensation Insurance: Part One of the policy applies to the Workers Compensation Law of the states listed here: B. Employers Liability Insurance: Part Two of the policy applies to work in each state listed in Item 3A. The limits of our liability under Part Two are: Bodily Injury by Accident $ each accident Bodily Injury by Disease $ policy limit Bodily Injury by Disease $ each employee C. Other States Insurance: Part Three of the policy applies to the states, if any, listed here: D. This policy includes these endorsements and schedules: 4. The premium for this policy will be determined by our Manual of Rules, Classifications, Rates and Rating Plans. All information required below is subject to verification and change by audit. Premium Basis Rate Per Estimated Code Estimated Annual $100 of Annual No. Classifications Remuneration Remuneration Premium See Information Page Notes on reverse. Experience Modification Total Estimated Annual Premium $ Minimum Premium $ Deposit Premium $ Premium Adjustment Period: Countersigned By Producer Information: Servicing/Issuing Office Date

5 Information Page Notes Information Page Form WC A has been designed to accommodate the requirements of all jurisdictions, including California. An insurer may file Information Page Form WC A for approval by the Department of Insurance, provided it meets the specifications contained herein. Information Page Form WC A reflects several items that are required to be shown in California, but are not necessary in other jurisdictions, and omits several items that are not required in California, but may be required in other jurisdictions. 1. The name of the insurer is to be shown prominently on the Information Page. This is especially critical for multi-company groups that use a single policy form for all or several companies within the group. 2. The policy number, including prefix and suffix, must be shown in the space reserved above Item 1 on the Information Page. It must be a unique number applying only to one policy and shall remain constant throughout the policy period. The policy number shall be used on all endorsements and relevant documents issued subsequent to the policy. 3. The prior policy number must be shown on the renewal policy Information Page. New business must be designated as new in the space provided for the prior policy number. A rewritten policy must show the prior policy number on the Information Page preceded by the phrase rewrite of or the acronym R/W. 4. The insurer ID number(s) may include the insurer s 3-digit California ID number and/or the 5-digit NCCI number. 5. The complete legal name and complete address of all the insureds, including postal zip code, must be shown in Item 1. Instructions for reporting the named insured are contained in Instructions for Reporting the Names of Insured on Workers Compensation Policies Supplement to the California Workers Compensation Uniform Statistical Reporting Plan. 6. The insured s address must be included if the insurer intends to electronically transmit an offer of renewal for a workers compensation insurance policy to the insured. (California Insurance Code 38.5 (b)). 7. The type of entity insured, such as individual, corporation, partnership, LLC, or LLP, must be shown on the Information Page. (See Instructions for Reporting the Names of Insured on Workers Compensation Policies Supplement to the California Workers Compensation Uniform Statistical Reporting Plan for additional instructions.) 8. The FEIN for each insured may be shown in Item 1. If an insured does not have a FEIN assigned, report The California Bureau number, if known, may be inserted in the space provided for the intrastate/interstate risk ID number. 10. The inception date and hour and expiration date and hour of coverage must be shown in Item 2. The hour of inception and expiration must be 12:01 A.M. 11. List in Item 3A all states in which Workers Compensation Insurance coverage is to be provided. 12. With respect to employers liability, the limits of liability must be shown separately for bodily injury by accident and bodily injury by disease in Item 3B. 13. The state for which Other States Insurance coverage is provided may be shown in Item 3C, either by name or by designation. An insurer may not designate or name a state listed in 3A, a monopolistic state fund state, or a state where the insurer will not provide Other States Insurance coverage. If California is shown in Item 3C and the insurer learns that the insured is conducting operations in California, then the insurer must delete California from Item 3C and, in the event the insurer is providing Workers Compensation Insurance coverage in California, add California to Item 3A. 14. The form number of every endorsement that is not attached to the daily submitted to the Bureau must be listed in Item 3D. It is only permitted to list a form number in lieu of submitting the endorsement if the entire endorsement is preprinted. (See Part 2, Section II, Rule 3, of the California Workers Compensation Uniform Statistical Reporting Plan.) 15. Each classification applicable to the insured s operations, the classification phraseology and the company rates for each classification must be shown in Item 4 or by endorsement. If operations are conducted at two or more locations and the classifications, other than Standard Exceptions, applicable at each location are not identical, then the classification assignments must be shown by location. 16. The Bureau-published experience modification must be clearly identified on the Information Page or by endorsement. 17. The total estimated annual premium and the California estimated annual premium may be shown on the Information Page or by endorsement. 18. The total deposit premium and the California deposit premium may be shown on the Information Page or by endorsement. 19. The premium adjustment period may be shown on the Information Page or by endorsement. 20. The minimum premium may be shown on the Information Page or by endorsement. 21. The location of the servicing/issuing office must be shown on the Information Page. 22. Other premium charges, including company surcharge, must be clearly identified on the Information Page or by endorsement. 23. The following information, while not mandatory, may be shown on the Information Page: Insurer ID number(s); intrastate/interstate risk ID number; producer information; estimated payroll by classification; estimated annual premium by classification; and the date the policy is issued or countersigned. 24. Each insurer may use its own method of execution and place the execution clause at the end of the Information Page, at the end of the standard policy, or on a policy jacket. A copy of every Information Page must be submitted to the Bureau within 60 days after the inception date of a policy if the policy provides workers compensation coverage in the State of California.

6 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC BC (Ed ) POLICY AMENDATORY ENDORSEMENT CALIFORNIA It is agreed that, anything in the policy to the contrary notwithstanding, such insurance as is afforded by this policy by reason of the designation of California in Item 3 of the Information Page is subject to the following provisions: 1. Minors Illegally Employed Not Insured. This policy does not cover liability for additional compensation imposed on you under Section 4557, Division IV, Labor Code of the State of California, by reason of injury to an employee under sixteen years of age and illegally employed at the time of injury. 2. Punitive or Exemplary Damages Uninsurable. This policy does not cover punitive or exemplary damages where insurance of liability therefor is prohibited by law or contrary to public policy. 3. Increase in Indemnity Payment Reimbursement. You are obligated to reimburse us for the amount of increase in indemnity payments made pursuant to Subdivision (d) of Section 4650 of the California Labor Code, if the late indemnity payment which gives rise to the increase in the amount of payment is due less than seven (7) days after we receive the completed claim form from you. You are obligated to reimburse us for any increase in indemnity payments not covered under this policy and will reimburse us for any increase in indemnity payment not covered under the policy when the aggregate total amount of the reimbursement payments paid in a policy year exceeds one hundred dollars ($100). If we notify you in writing, within 30 days of the payment, that you are obligated to reimburse us, we will bill you for the amount of increase in indemnity payment and collect it no later than the final audit. You will have 60 days, following notice of the obligation to reimburse, to appeal the decision of the insurer to the Department of Insurance. 4. Application of Policy. Part One, Workers Compensation Insurance, A, How This Insurance Applies, is amended to read as follows: This workers compensation insurance applies to bodily injury by accident or disease, including death resulting therefrom. Bodily injury by accident must occur during the policy period. Bodily injury by disease must be caused or aggravated by the conditions of your employment. Your employee s exposure to those conditions causing or aggravating such bodily injury by disease must occur during the policy period. 5. Rate Changes. The premium and rates with respect to the insurance provided by this policy by reason of the designation of California in Item 3 of the Information Page are subject to change if ordered by the Insurance Commissioner of the State of California pursuant to Section of the California Insurance Code. 6. Long Term Policy. If this policy is written for a period longer than one year, all the provisions of this policy shall apply separately to each consecutive twelve-month period or, if the first or last consecutive period is less than twelve months, to such period of less than twelve months, in the same manner as if a separate policy had been written for each consecutive period. 7. Statutory Provision. Your employee has a first lien upon any amount which becomes owing to you by us on account of this policy, and in the case of your legal incapacity or inability to receive the money and pay it to the claimant, we will pay it directly to the claimant. 8. Part Five, Premium, E, Final Premium, is amended to read as follows: The premium shown on the Information Page, schedules, and endorsements is an estimate. The final premium will be determined after this policy ends by using the actual, not the estimated, premium basis and the proper classifications and rates that lawfully apply to the business and work covered by this policy. If the final premium is more than the premium you paid to us, you must pay us the balance. If it is less, we will refund the balance to you. The final premium will not be less than the highest minimum premium for the classifications covered by this policy. If this policy is canceled, final premium will be determined in the following way unless our manuals provide otherwise: a. If we cancel, final premium will be calculated pro rata based on the time this policy was in force. Final premium will not be less than the pro rata share of the minimum premium. b. If you cancel, final premium may be more than pro rata; it will be based on the time this policy was in force, and may be increased by our short-rate cancelation table and procedure. Final premium will not be less than the pro rata share of the minimum premium. 9. The Insured s Address. The insured s address must be included in Item 1 of the Information Page if the insurer intends to electronically transmit an offer of renewal for a workers compensation insurance policy to the insured (California Insurance Code 38.5 (b). 1 of 2

7 WC BC WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY (Ed ) It is further agreed that this policy, including all endorsements forming a part thereof, constitutes the entire contract of insurance. No condition, provision, agreement, or understanding not set forth in this policy or such endorsements shall affect such contract or any rights, duties, or privileges arising therefrom. Note: 1. This endorsement may be used to amend the Workers Compensation and Employers Liability Insurance Policy, WC BC, to comply with California law. 2. The insured s address is required on Page 1 of the Information Page only if the insurer intends to electronically transmit an offer of renewal for a workers compensation insurance policy to the insured. (California Insurance Code 38.5 (b)). This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective Policy No. Endorsement No. Insured Insurance Company Countersigned By 2 of 2

8 WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC C (Ed ) POLICY AMENDATORY ENDORSEMENT CALIFORNIA It is agreed that, anything in the policy to the contrary notwithstanding, such insurance as is afforded by this policy by reason of the designation of California in Item 3 of the Information Page is subject to the following provisions: 1. Minors Illegally Employed Not Insured. This policy does not cover liability for additional compensation imposed on you under Section 4557, Division IV, Labor Code of the State of California, by reason of injury to an employee under sixteen years of age and illegally employed at the time of injury. 2. Punitive or Exemplary Damages Uninsurable. This policy does not cover punitive or exemplary damages where insurance of liability therefor is prohibited by law or contrary to public policy. 3. Increase in Indemnity Payment Reimbursement. You are obligated to reimburse us for the amount of increase in indemnity payments made pursuant to Subdivision (d) of Section 4650 of the California Labor Code, if the late indemnity payment which gives rise to the increase in the amount of payment is due less than seven (7) days after we receive the completed claim form from you. You are obligated to reimburse us for any increase in indemnity payments not covered under this policy and will reimburse us for any increase in indemnity payment not covered under the policy when the aggregate total amount of the reimbursement payments paid in a policy year exceeds one hundred dollars ($100). If we notify you in writing, within 30 days of the payment, that you are obligated to reimburse us, we will bill you for the amount of increase in indemnity payment and collect it no later than the final audit. You will have 60 days, following notice of the obligation to reimburse, to appeal the decision of the insurer to the Department of Insurance. 4. Application of Policy. Part One, Workers Compensation Insurance, A, How This Insurance Applies, is amended to read as follows: This workers compensation insurance applies to bodily injury by accident or disease, including death resulting therefrom. Bodily injury by accident must occur during the policy period. Bodily injury by disease must be caused or aggravated by the conditions of your employment. Your employee s exposure to those conditions causing or aggravating such bodily injury by disease must occur during the policy period. 5. Rate Changes. The premium and rates with respect to the insurance provided by this policy by reason of the designation of California in Item 3 of the Information Page are subject to change if ordered by the Insurance Commissioner of the State of California pursuant to Section of the California Insurance Code. 6. Long Term Policy. If this policy is written for a period longer than one year, all the provisions of this policy shall apply separately to each consecutive twelve-month period or, if the first or last consecutive period is less than twelve months, to such period of less than twelve months, in the same manner as if a separate policy had been written for each consecutive period. 7. Statutory Provision. Your employee has a first lien upon any amount which becomes owing to you by us on account of this policy, and in the case of your legal incapacity or inability to receive the money and pay it to the claimant, we will pay it directly to the claimant. 8. Part Five, Premium, E, Final Premium, is amended to read as follows: The premium shown on the Information Page, schedules, and endorsements is an estimate. The final premium will be determined after this policy ends by using the actual, not the estimated, premium basis and the proper classifications and rates that lawfully apply to the business and work covered by this policy. If the final premium is more than the premium you paid to us, you must pay us the balance. If it is less, we will refund the balance to you. The final premium will not be less than the highest minimum premium for the classifications covered by this policy. If this policy is canceled, final premium will be determined in the following way unless our manuals provide otherwise: a. If we cancel, final premium will be calculated pro rata based on the time this policy was in force. Final premium will not be less than the pro rata share of the minimum premium. b. If you cancel, final premium may be more than pro rata; it will be based on the time this policy was in force, and may be increased by our short-rate cancelation table and procedure. Final premium will not be less than the pro rata share of the minimum premium. 9. The Insured s Address. The insured s address must be included in Item 1 of the Information Page if the insurer intends to electronically transmit an offer of renewal for a workers compensation insurance policy to the insured (California Insurance Code 38.5 (b). 1 of 2

9 WC C WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY (Ed ) It is further agreed that this policy, including all endorsements forming a part thereof, constitutes the entire contract of insurance. No condition, provision, agreement, or understanding not set forth in this policy or such endorsements shall affect such contract or any rights, duties, or privileges arising therefrom. Note: 1. This endorsement may be used to amend the Workers Compensation and Employers Liability Insurance Policy, WC C, to comply with California law. 2. The insured s address is required on Page 1 of the Information Page only if the insurer intends to electronically transmit an offer of renewal for a workers compensation insurance policy to the insured. (California Insurance Code 38.5 (b)). This endorsement changes the policy to which it is attached and is effective on the date issued unless otherwise stated. (The information below is required only when this endorsement is issued subsequent to preparation of the policy.) Endorsement Effective Policy No. Endorsement No. Insured Insurance Company Countersigned By 2 of 2