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New Waiver Rules for Workers Compensation Effective January 2017

Dec 02, 2016

New Exclusion Rule Effective January 2017 

What's Changing? 

The recent passage of ​AB 2883 introduces a significant change to the exclusion rules governing Workers' Compensation policies. 

Currently, certain individuals are provided benefits under a Workers Compensation policy by election, but effective January 1, 2017, these same individuals will no longer be excluded from the Workers' Compensation policy unless a compliant waiver is signed and submitted to the Work Comp carrier. 

If waivers are not submitted to the carrier by the required deadline, the individuals listed below will be considered employees and premium will be charged for all new, renewing and inforce policies. 

IMPORTANT NOTE: officers or directors owning less than 15% of the issued and outstanding stock of a corporation are no longer eligible for Work Comp exclusion even if they sign and submit a waiver. These individuals will be considered employees and premium will be charged beginning January 1, 2017. 

Exclusion Requirements 

Should any of the above criteria apply, the individual(s) that wish to maintain their exclusion from Work Comp coverage must complete the following: 

Broker Recommendations 

We recommend that all brokers do the following, REGARDLESS if they write Work Comp policies as an added value service to their clients: 

Important Dates 

December 31, 2016 

January 1, 2017 

Should you have any questions regarding AB 2883 compliance, please contact ​Patrick Kim at 925-296-5478 for assistance.

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