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Election/Rejection of Coverage Under
State Law: |
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Generally, executive officers of a
corporation are included under a state’s workers compensation act
unless they file for an exemption of coverage. Partners and sole
proprietors are generally exempt from coverage under a state act,
but may often elect to bring themselves under the act.
It is the responsibility of the
employer and/or its representative to determine, prior to applying
for coverage, the options available under a specific state’s act.
Further, it should be noted that action taken either to elect or
reject coverage under a state’s act does not eliminate the
need for such action in additional states where the employer has
exposure.
If a person elects or rejects the
act, certain forms are usually required to be filed with and may
even have to be approved by the appropriate state agency. If such an
exemption or election is desired, the effective form or
appropriate documentation must be forwarded to the Plan
Administrator via the agent upon application for coverage, or must
be forwarded to the assigned carrier if such action is desired after
policy issuance. Otherwise, the payrolls for the parties will be
treated as if no election or rejection is made in accordance with
state law, and premium will be charged.
Producers and employers can avoid
additional premium charges by the assigned carrier by supplying
these documents with the application for insurance. Without the
forms, assigned carriers may charge premium even if the intent was
to elect or reject.
No one is currently allowed to
exclude him or herself from the provisions of federal compensation
acts. The State Fund provides coverage to those employers that are
required by state law to obtain it. Federal coverage offered through
the State Fund must be written in conjunction with the state act.
Therefore, any person subject to federal law is required to obtain
or able to elect state act coverage to obtain federal coverage under
the Plan or Fund.
Click Here to find state specific information regarding
Owners Election/Rejection of Workers' Compensation Coverage.
Additional Links and Information:
The Basics of Workers' Compensation
Workers' Compensation Laws
Workers' Compensation Claims
Workers' Compensation Benefits
Workers' Compensation Classification Codes
State Fund Workers' Compensation
Workers' Compensation Forms
Workers' Compensation Audit Information
Workers' Compensation Commission
Workers' Compensation Information by State
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