7 CCR 1101-3-17-3 - Insurance Coverage
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.
Notes
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