CA Workers’ Compensation
“AB 2883 provides that all business workers’ comp insurance policies, including in-force policies, will be required to cover certain officers and directors of private corporations and working members of partnerships and limited liability companies that may have been previously excluded from coverage beginning on Jan. 1, 2017.Beginning January 1, 2017, in order for any of these individuals to be excluded from coverage the following requirements must be met:”
www.insurancejournal.com/news/west/2016/10/17/429540.html
Specifically, the exclusions for corporate officers have tightened… These are the new rules….
- Corporations: An officer or member of the board of directors must own at least 15% of the outstanding stock of the corporation and must sign a written waiver of workers’ compensation benefits under penalty of perjury that he or she is a qualifying officer or director.
- Partnerships/LLCs: For general partners of a general partnership and managing members of a limited liability company, the individual must sign a written waiver of workers’ compensation benefits under penalty of perjury that he or she is a qualifying general partner or managing member.
Not sure what this means to rate going forward as it opens the door to a class of potential claimant previously not understood in setting loss costs. California comp not getting easier…
-Paul R Hughes
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