Important Worker’s Compensation News
Effective January 1, 2017 a new law (AB 2883) is being put into place by the California Department of Insurance. This law will affect all new, renewal and inforce policies related to the exclusion of officers, directors, partners and members. Please note, the following changes may apply to your Worker’s Compensation policy.
AB 2883 Changes:
· Entities not affected are Individuals/Sole Proprietors and spouse and family members.
· Any eligible individual (officer, director, general partner, and managing member) electing exclusion from workers’ compensation benefits must provide a signed waiver to the insurance carrier prior to January 1, 2017.
· For corporations, officers and directors (i.e., members of the Board of Directors) must now also meet a 15% ownership threshold in order to be eligible for exclusion.
· For partnerships, only general partners are eligible for exclusion.
· For LLCs, only managing members are eligible for exclusion.
· Grantors or revocable trusts are no longer deemed shareholders and will not qualify for exclusion.
· The requirement that 100% of the stock must be held by titled Officers/Directors in order for them to be eligible for exclusion has been eliminated.
With these changes coming, we are working to get a jump on the newly required filing procedures. In our efforts to update your ownership information, we ask that you assist us in completing the following information and return any requested documentation so we may notify your Workers’ Compensation carrier.
Each Workers’ Compensation carrier has their own response to the new law (AB2883) and their own forms to be completed and signed by any qualifying persons to request exclusion from coverage. You may or may not have already received notification from your carrier. Please respond soon to avoid the inclusion of all owners subject to the minimum/maximum payroll guidelines set for 2017.
Please do not hesitate to contact our office with any questions or concerns. We are ready to work through this process with you to make this filing process as seamless as possible.
In regards to the following insured, the ownership layout is as follows:
Please Fax the completed form to (209) 848-4931 or mail us at:
Basi Insurance Services, Inc.
1491 East G Street
Oakdale, CA 95391