§ 48-144.03 — Workers' compensation insurance policy; master policy obtained by professional employer organization; notice of cancellation or nonrenewal; effective date

Nebraska § 48-144.03

• Jurisdiction: Nebraska
• Ch. 48: Labor

Text

(1)
Notwithstanding policy provisions that stipulate a workers' compensation insurance
policy to be a contract with a fixed term of coverage that expires at the
end of the term, coverage under a workers' compensation insurance policy shall
continue in full force and effect until notice is given in accordance with
this section.
(2) No cancellation of a workers' compensation insurance
policy within the policy period shall be effective unless notice of the cancellation
is given by the workers' compensation insurer to the Nebraska Workers' Compensation
Court and to the employer. No such cancellation shall be effective until thirty
days after the giving of such notices, except that the cancellation may be
effective ten days after the giving of such notices if such cancellation is
based on (a) notice from the employer to the insurer to cancel the policy,
(b) nonpayment of premium due the insurer under any policy written by the
insurer for the employer, (c) failure of the employer to reimburse deductible
losses as required under any policy written by the insurer for the employer,
or (d) failure of the employer, if covered pursuant to section 44-3,158 , to
comply with sections 48-443 to 48-445 .
(3) No workers' compensation insurance policy shall expire
or lapse at the end of the policy period unless notice of nonrenewal is given
by the workers' compensation insurer to the compensation court and to the
employer. No workers' compensation insurance policy shall expire or lapse
until thirty days after the giving of such notices, except that a policy may
expire or lapse ten days after the giving of such notices if the nonrenewal
is based on (a) notice from the employer to the insurer to not renew the policy,
(b) nonpayment of premium due the insurer under any policy written by the
insurer for the employer, (c) failure of the employer to reimburse deductible
losses as required under any policy written by the insurer for the employer,
or (d) failure of the employer, if covered pursuant to section 44-3,158 , to
comply with sections 48-443 to 48-445 .
(4) Subsections
(2) and (3) of this section terminate on January 1, 2012. Subsections (5),
(6), and (7) of this section apply beginning on January 1, 2012.
(5)(a) This
subsection applies to workers' compensation policies other than master policies
or multiple coordinated policies obtained by a professional employer organization.
(b) No cancellation
of a policy within the policy period shall be effective unless notice of the
cancellation is given by the workers' compensation insurer to the compensation
court and to the employer. No such cancellation shall be effective until thirty
days after giving such notices, except that the cancellation may be effective
ten days after the giving of such notices if such cancellation is based on
(i) notice from the employer to the insurer to cancel the policy, (ii) nonpayment
of premium due the insurer under any policy written by the insurer for the
employer, (iii) failure of the employer to reimburse deductible losses as
required under any policy written by the insurer for the employer, or (iv)
failure of the employer, if covered pursuant to section 44-3,158 , to comply
with sections 48-443 to 48-445 .
(c) No policy shall expire or lapse at
the end of the policy period unless notice of nonrenewal is given by the workers'
compensation insurer to the compensation court and to the employer. No policy
shall expire or lapse until thirty days after giving such notices, except
that a policy may expire or lapse ten days after the giving of such notices
if the nonrenewal is based on (i) notice from the employer to the insurer
to not renew the policy, (ii) nonpayment of premium due the insurer under
any policy written by the insurer for the employer, (iii) failure of the employer
to reimburse deductible losses as required under any policy written by the
insurer for the employer, or (iv) failure of the employer, if covered pursuant
to section 44-3,158 , to comply with sections 48-443 to 48-445 .
(6)(a) This
subsection applies to workers' compensation master policies obtained by a
professional employer organization.
(b) No cancellation of a master policy
within the policy period shall be effective unless notice of the cancellation
is given by the workers' compensation insurer to the compensation court and
to the professional employer organization. No such cancellation shall be effective
until thirty days after giving such notices.
(c) No termination of
coverage for a client or any employees of a client under a master policy within
the policy period shall be effective unless notice is given by the workers'
compensation insurer to the compensation court and to the professional employer
organization. No such termination of coverage shall be effective until thirty
days after giving such notices, except that the termination of coverage may
be effective ten days after the giving of such notices if such termination
is based on (i) notice from the client to the professional employer organization
or the insurer to terminate the coverage or (ii) notice from the professional
employer organization of the client's nonpayment of premium.
(d) No master
policy shall expire or lapse at the end of the policy period unless notice
of nonrenewal is given by the workers' compensation insurer to the compensation
court and to the professional employer organization. No master policy shall
expire or lapse until thirty days after giving such notices.
(e) Notice of the cancellation
or nonrenewal of a master policy or the termination of coverage for a client
or the employees of a client under such a policy shall be given by the professional
employer organization to the client within fifteen days after the cancellation,
nonrenewal, or termination unless replacement coverage has been obtained.
(7)(a) This
subsection applies to workers' compensation multiple coordinated policies
obtained by a professional employer organization.
(b) No cancellation of
a policy within the policy period shall be effective unless notice of the
cancellation is given by the workers' compensation insurer to the compensation
court, to the professional employer organization, and to the client employer.
No such cancellation shall be effective until thirty days after giving such
notices, except that the cancellation may be effective ten days after giving
such notices if such cancellation is based on (i) notice from the client to
the professional employer organization or the insurer to cancel the policy,
(ii) notice from the professional employer organization of the client's nonpayment
of premium or failure to reimburse deductibles for policies issued pursuant
to section 48-146.03 , (iii) failure of the client, if covered pursuant to
section 44-3,158 , to comply with sections 48-443 to 48-445 , or (iv) for policies
issued pursuant to section 44-3,158 , nonpayment of premium or failure to reimburse
deductibles for policies issued pursuant to section 48-146.03 .
(c) No termination
of coverage for any employees of the client during the policy period shall
be effective unless notice is given by the workers' compensation insurer to
the compensation court, to the professional employer organization, and to
the client. No such termination of coverage shall be effective until thirty
days after giving such notices, except that the termination of coverage may
be effective ten days after the giving of such notices if such termination
is based on (i) notice from the client to the professional employer organization
or the insurer to terminate the coverage or (ii) notice from the professional
employer organization of the client's nonpayment of premium or failure to
reimburse deductibles for policies issued pursuant to section 48-146.03 .
(d) No policy
shall expire or lapse at the end of the policy period unless notice of nonrenewal
is given by the workers' compensation insurer to the compensation court, to
the professional employer organization, and to the client. No policy shall
expire or lapse until thirty days after giving such notices, except that a
policy may expire or lapse ten days after the giving of such notices if the
nonrenewal is based on (i) notice from the client to the professional employer
organization or the insurer to not renew the policy, (ii) notice from the
professional employer organization of the client's nonpayment of premium or
failure to reimburse deductibles for policies issued pursuant to section 48-146.03 ,
(iii) failure of the client, if covered pursuant to section 44-3,158 , to comply
with sections 48-443 to 48-445 , or (iv) for policies issued pursuant to section 44-3,158 , nonpayment of premium or failure to reimburse deductibles for policies
issued pursuant to section 48-146.03 .
(e) An insurer may refrain from sending
notices required by this subsection to a professional employer organization's
client based upon the professional employer organization's representation
that coverage has been or will be replaced. Such representation shall not
absolve the insurer of its responsibility to continue coverage if such representation
proves inaccurate.
(8) Notwithstanding
other provisions of this section, if replacement workers'
compensation insurance coverage has
been secured with another workers' compensation insurer, then
the cancellation or nonrenewal of
the policy or the termination of coverage for a client or employees of a client
under the policy shall be effective as of the effective date of
such other insurance coverage.
(9) The notices required by
this section shall state the reason for the cancellation or nonrenewal of
the policy or termination of
coverage for a client or employees of a client under a policy.
(10) The notices required
by this section shall be provided in writing and shall be deemed given upon
the mailing of such notices by certified mail, except that notices from insurers
to the compensation court may be provided by electronic means if such electronic
means is approved by the administrator of the compensation court. If notice
is provided by electronic means pursuant to such an approval, it shall be
deemed given upon receipt and acceptance by the compensation court.

Legislative History

Source: Laws 1971, LB 572, § 13; Laws 1972, LB 1269, § 1; Laws 1986, LB 811, § 65; Laws 1994, LB 978, § 49; Laws 1994, LB 1222, § 61; Laws 1996, LB 1230, § 1; Laws 2005, LB 13, § 7; Laws 2005, LB 238, § 8; Laws 2007, LB117, § 33; Laws 2009, LB630, § 9; Laws 2010, LB579, § 15. Annotations: Under subsection (10) of this section, an insurer need only prove that it sent a notice of cancellation to an employer by certified mail; the insurer's record of the certified mail tracking number used to send the notice itself was not sufficient to prove certified mail service. Greenwood v. J.J. Hooligan's, 297 Neb. 435, 899 N.W.2d 905 (2017). Subsection (2) of this section applies only to an insurer's intent to nonrenew a policy and does not address either an employer's intent to not renew a policy for an additional term or nonrenewal by an employer through lapse at the end of the policy period due to the employer's nonpayment of a renewal premium. Brouilette v. DBV Enterprises, Inc., 9 Neb. App. 757, 619 N.W.2d 482 (2000).