§ 48-2709 — Workers' compensation coverage; allocation of responsibility; information to administrator of Nebraska Workers' Compensation Court; notice; posting; contents; notice of cancellation, nonrenewal, or termination; rights of client

Nebraska § 48-2709

• Jurisdiction: Nebraska
• Ch. 48: Labor

Text

(1) The responsibility to obtain workers' compensation coverage
for employees covered by the professional employer agreement and for other
employees of the client shall be allocated in the professional employer agreement
to the client, the professional employer organization, or both, in accordance
with this section. If any such responsibility is allocated to the professional
employer organization, the professional employer organization shall:
(a) Advise
the client of the provisions of subdivisions (9) and (10) of section 48-115 ;
(b) Advise
the client of its obligation to obtain an additional workers' compensation
insurance policy if the professional employer organization's policy limits
coverage to co-employees as specified in the professional employer agreement;
and
(c) Provide the client with the name of the insurer providing coverage,
the policy number, claim notification instructions, and any itemized charges
that are to be made for workers' compensation coverage within ten days after
enrollment.
(2)(a) If all employees of the client are not covered employees
under the professional employer agreement, then a workers' compensation insurance
policy obtained by the professional employer organization to cover employees
of the client may be written to limit coverage to those employees who are
co-employees of the professional employer organization and the client. If
a professional employer organization's policy limits coverage to co-employees
as specified in the professional employer agreement, then the client shall
obtain an additional workers' compensation insurance policy. The policy obtained
by the client shall be written to cover any and all employees not covered
by the professional employer organization's policy, including any potential
new or unknown employees. All insurance policies issued pursuant to this subsection
shall be subject to and shall comply with the requirements of this subsection
and any rule or regulation adopted by the Department of Insurance.
(b) If all
employees of the client are covered employees under the professional employer
agreement, then a workers' compensation insurance policy obtained by the professional
employer organization to cover employees of the client must be written to
cover any and all employees of the client, including potential new or unknown
employees that may not be covered employees under the agreement.
(c) A professional
employer organization shall not split coverage that it obtains for a client
between two or more policies.
(d) A professional employer organization
shall not split coverage for its direct-hire employees between two or more
policies.
(e) The Department of Insurance may adopt and promulgate rules
and regulations to implement this subsection.
(3) If the professional
employer agreement allocates responsibility to the professional employer organization
to obtain workers' compensation coverage only for co-employees, then the professional
employer organization shall provide the following information to the administrator
of the Nebraska Workers' Compensation Court. Such information shall be provided
for any such professional employer agreement in effect on January 1, 2012,
and prior to the effective date of any new professional employer agreement
or any amendment of an agreement adding such a provision after January 1,
2012, and shall be provided in a form and manner prescribed by the administrator:
(a) The names
and addresses of the client and the professional employer organization;
(b) The effective
date of the professional employer agreement;
(c) A description of
the employees covered under the professional employer agreement;
(d) Evidence
that any and all other employees of the client are covered by a valid workers'
compensation insurance policy; and
(e) Any other information the administrator
may require regarding workers' compensation coverage of the professional employer
organization, the client, or the covered employees.
(4) If workers' compensation
coverage for a client's employees covered by the professional employer agreement
and for other employees of the client is not entirely available in the voluntary
market, then assigned risk workers' compensation coverage written subject
to section 44-3,158 may only be written on a single policy that covers all
employees and co-employees of the client. Assigned risk workers' compensation
insurance for the professional employer organization may also be written,
but only on a basis that covers its direct-hire employees and excludes employees
and co-employees of its clients. The Department of Insurance may adopt and
promulgate rules and regulations to implement this subsection.
(5) If a master
policy or multiple coordinated policy providing coverage to a client is obtained
by a professional employer organization, then the professional employer organization
shall provide the client with a notice that the client shall conspicuously
post at its workplace. Such notice shall provide the name and address of the
workers' compensation insurer and the individual to whom claims shall be directed.
If more than one workers' compensation insurer provides coverage for employees
and co-employees of the client, the client shall post such information for
all such workers' compensation insurers.
(6) Both the client and the professional
employer organization shall be considered the employer for purposes of coverage
under the Nebraska Workers' Compensation Act. The protection of the exclusive
remedy provision of the act shall apply to the professional employer organization,
to the client, and to all covered employees and other employees of the client
regardless of which co-employer obtains such workers' compensation coverage.
(7) If a client
receives notice of the cancellation, nonrenewal, or termination of workers'
compensation coverage obtained by the professional employer organization,
then the client may withdraw from the professional employer agreement without
penalty unless the client is notified by the professional employer organization
of replacement coverage within fifteen days after the notice.
(8) A professional
employer organization shall not impose any fee increase on a client based
on the actual or anticipated cost of workers' compensation coverage without
giving the client at least thirty days' advance notice and an opportunity
to withdraw from the professional employer agreement without penalty.
(9) The professional
employer organization shall not make any materially inaccurate, misleading,
or fraudulent representations to the client regarding the cost of workers'
compensation coverage. If the professional employer organization charges the
client an itemized amount for workers' compensation coverage, the professional
employer organization shall provide the client with an accurate and concise
description of the basis upon which it was calculated and the services that
are included. A professional employer organization shall not charge a client
an itemized amount for workers' compensation coverage that is materially inconsistent
with the actual amounts that the professional employer organization is charged
by the insurer, given reasonably anticipated loss-sensitive charges, if applicable,
reasonable recognition of the professional employer organization's costs,
and a margin for profit.

Legislative History

Source: Laws 2010, LB579, § 9. Cross References: Nebraska Workers' Compensation Act, see section 48-1,110.