Workers Compensation and The Migrant Workers Act q

Workers Compensation and The Migrant Workers Act q. The webinar will begin shortly. q. There is no audio at this time. q. This presentation is being recorded for your viewing pleasure at a future date. q. The attendance and proctor forms are available under ‘Materials’ in the Webinar’s Console to the right. q. The Power. Point presentation is also q 100% Participation in available under ‘Materials’. Polling Questions is required to receive credit for this q. You will receive the course number for class. Even if you do not your state near the end of class. intend to receive credit, please participate in the q. Use the ‘chat’ window for questions polls. Insurance Community University on the content. 1

Welcome to your Insurance Community University Audio • All of you are currently on mute – Un-mute your own system – Telephone Option • Select Telephone on your screen • Dial in the PIN number so that your number becomes active – Microphone and/or Speaker Option • You can use this option if you have a headset Insurancethat you use with your computer Community University 2

Participation & Chat Window • You will receive information from the monitor via the ‘Chat’ window. – Please locate window in the control panel • Q & A is welcomed during the presentation and at the end of the presentation • You will find the question box on your control panel – Write your question in that box and send it to the presenter/organizer • The presenter will take those • questions in the order submitted Insurance Community University 3

DOI Requirements • When you see a slide with the hand up symbol, touch the “hand” icon on your control panel – Click ONCE only • If you do not raise your hand, the monitor will be in contact with you in the chat box • If you are in a group, the designated proctor is responsible to make certain you are all in attendance at all times = Hand is down Insurance Community University 4

Polling • Throughout the class we will be conducting periodic polls • We need 100% participation on the polls • The polls are intended to check participation but also to create discussion topics throughout the presentation Insurance Community University 5

Forms To Complete for CE • After class ends – Return attendance form – Proctors – return your form to email address • Email address is in chat window or in email sent to you today Insurance Community University 6

DOI Requirements • We will file your hours with the DOI after the completion of this webinar and we have received the attendance form. • You have 48 hours to return the form • You will be sent a Certificate of Attendance/Completion by email. Please retain this for your records for five years. Insurance Community University 7

Internet Disruption • If the presenter looses internet connection STAY ON THE LINE • The administrators will communicate with you Insurance Community University

Internet Failure • If the internet fails and all participants are kicked off line by Go To Training or other source then the seminar will be terminated • You will receive instructions by email as to how we will proceed • This is a precautionary notice, only Insurance Community University 9

This class is being recorded • Available in the University • This course is approved for CE in CA Only Insurance Community University

Disclaimer Insurance forms and endorsements vary based on insurance company; changes in edition dates; regulations; court decisions; and state jurisdiction. This instructional materials provided by Insight is intended as a general guideline and any interpretations provided by the instructor or the creator(s) of this material do not modify or revise insurance policy language. In providing these materials, the authors assume neither liability nor responsibility to any person or business with respect to any loss that is alleged to be caused directly or indirectly as a result of the instructional materials provided. Copyright 2010 – 2013 All Rights Reserved www. insurancecommunitycenter. com Insurance Community University 11

Your Instructor Today M Thomas Ruke, JR. , CIC, CPIA, CWIS, AFIS, TRS Insurance Business Consultants, Inc. P O Box 2030 Ft Myers, FL 33902 trs@ibci. net Insurance Community University 12

Polling Question #1 Insurance Community University

Overview on Workers Compensation Protection Insurance Community University 14

Workers Compensation Protection • State oversight – Rates – Plans – Service Insurance Community University 15

Workers Compensation Protection • State Provided Carrier – Monopolistic – Only provider in state • State competitive funds (plans) – State owned insurance company – Competes with volunteer market • Residual market – No matter how bad, required to market – Surcharges Insurance Community University 16

Polling Question #2 • Your insured has workers in more than one state and the worker gets hurt. What State laws could the worker choose from? Insurance Community University

The Insured Has Workers In More Than One State • State Differences – Compliance – Monetary, volunteer, elective – Waivers permitted -- Which employees can decide not to be covered? Insurance Community University 18

The Insured Has Workers In More Than One State – How many workers are required before coverage is mandated? – Coverage for certain type employment workers – Domestic, farm, real estate agent, professional athletes, missionaries – Providers of protection Insurance Community University 19

The Insured Has Workers In More Than One State • Benefits – All state laws require insurance companies to pay 100% of incurred medical – Some have managed care – All pay loss of wages but vary greatly (indemnity) Insurance Community University 20

The Insured Has Workers In More Than One State • How much indemnity (loss of wages) is payable? – Function of worker’s average weekly wage – Maximum and minimum – Impairment rating; condition at time of MMI – Other disfigurement, loss of body parts Insurance Community University 21

The Insured Has Workers In More Than One State • When collectible – Waiting period – Before indemnity is “due” – Days after injury before payments are payable • Burial allowance (death) Insurance Community University 22

Why Would The Insured Have Workers In More Than One State? • Multi-State Operations? • Take a Job in Another State? • Takes Workers to the New State? Insurance Community University 23

Why Would the Insured Have Workers In More Than One State? • Possible job types – Construction – Transportation – Consulting – Agricultural Insurance Community University 24

Why Would The Insured Have Workers In More Than One State? • Considerations: – Have worker who lives in the new state do all or part of the work? – Take worker to new state – How long is the job? – Is housing furnished? – Is transportation furnished? Insurance Community University 25

Injury Happens • Which state laws would the worker chose – State with maximum indemnity – Ag workers have low wages – Not a good consideration – Death benefits • More possible differences Insurance Community University 26

Injury Happens • Real World – Workers compensation carrier steps up and pays • All medical due to work related injury • Loss of wages – State law differences normally not a factor – Death • Selection of state law could make a difference Insurance Community University 27

Specific Concerns with Agricultural Workers Compensation Insurance Community University 28

Specific Concerns With Agricultural Employment • Workers (Pickers) Do Move (Follow the Crops) • Often Four State Possibilities Could Apply • Sometimes Their Place of “Residence” May Not Be in the U. S. Insurance Community University 29

Specific Concerns With Agricultural Employment • How Did They Get From One State to Another? • Transportation Exposure (Major Exposure) • Claims Jurisdiction • States Vary on Requirements to Provide Workers Compensation for Agricultural Workers • Employer (Insured) Still Liable for Injuries with or without Workers Compensation Insurance Community University 30

Workers In More Than One State Worker Just Passing Through Truck Driver Farm Laborer Just “Passing” Through Sales Representative Attending Meetings, Conference or Education • Seminar Speakers • • • Insurance Community University 31

Workers In More Than One State • Question – Will the State Accept the Worker Under Its Work Comp Law as a Worker in That State? • Extraterritorial Provisions of the State Workers Compensation Law Insurance Community University 32

Workers Compensation Coverage Considerations • The More States the Insured Has Workers in – The More Differences • Injured Worker Has Options of State Laws • Policy(ies) Must Be Written Properly to Access the Options Insurance Community University 33

Workers Compensation Coverage Considerations • To Cover All Employees and Provide Compensation for Work-Related Injuries and Disease • Part 3 A – Workers Compensation Insurance • List All States in Which Insured Has Operations (Known or Expected) at Policy Issuance • Cannot List Monopolistic States Insurance Community University 34

Workers Compensation Coverage Considerations • Agent Must Ask Before Writing First Policy for the Insured and at Least 45 Days Before Each Renewal – What state(s) do you currently have workers in? – What states did you have workers in in the last 12 months that are not listed? – Where do you have contracts to provide service in during the next policy term and where do you have recruiting offices? – What state(s) do your workers live in? – Must list in 3 A Insurance Community University 35

Workers Compensation Coverage Considerations • Part 3 C – Other States Insurance – Covers operations of an insured at new locations when the exposure develops after policy inception • Policy Only Covers Workers Compensation Obligations of States Listed in 3 A or 3 C – If Not Listed Here, There Is No Coverage to Meet the State Legal Requirements Insurance Community University 36

Workers Compensation Coverage Considerations • How “Other States” Insurance Applies – Applies only if shown in Item 3 C – Not monopolistic fund states (no private insurance allowed) – Applies if you begin work after policy issuance – Company will reimburse if they cannot directly pay Insurance Community University 37

Workers Compensation Coverage Considerations • Must notify within 30 days of the effective date of this policy for states where work already exists and that state is not listed in Item 3 A. This makes it imperative that the insured be contacted before renewal to list the correct states listed in 3 A Insurance Community University 38

Workers Compensation Coverage Considerations • Recap – Setting the policy up – Insured (the employer) – Tax ID holder • 3 A – States the insured has “known” places of employment at policy issuance – States where workers are currently – States where contracts for future work – States workers live in Insurance Community University 39

Workers Compensation Coverage Considerations • 3 C – All other states where works might be – Suggested wording – All states except monopolistic states and states listed in 3 A • Policy only addresses injuries in states listed in 3 A or 3 C Insurance Community University 40

Endorsements • Voluntary Compensation and Employers Liability Coverage (WC 00 03 11) • Alternate Employer (WC 00 03 01 A) • Employers’ Liability Coverage (WC 00 03 03 B) • Waiver of Our Right to Recover From Others (WC 00 03 13) • Domestic and Agricultural Workers Exclusion Endorsement (WC 00 03 15) Insurance Community University 41

Insureds’ Use Of • Non-Employees • Exempt Workers • Independent Contractors • Farm Workers Insurance Community University 42

Polling Question #3 What Are Reasons for Not Bringing Certain Employees Under Workers Compensation Laws? Insurance Community University

Not Bringing Certain Employees Under Workers Compensation Laws • No Comp Because State Does Not Require – Not Enough Employees • Waiver • Farm Labor • Good • Bad • Real Bad Insurance Community University 44

Business Uses Workers Even If They Are Exempt From Mandatory Coverage • The worker gets injured • The worker seeks payment for injury • Worker must prove negligence if business is not required to carry workers compensation insurance; just like nonworkers at insured’s location or job site Insurance Community University 45

Business Uses Workers Even If They Are Exempt From Mandatory Coverage • The user of the worker would get their common law defense • If user had to carry workers compensation and did not, then the injured worker would not have to prove negligence – User has no defense Insurance Community University 46

Business Uses Workers Even If They Are Exempt From Mandatory Coverage • No coverage in GL or AL because worker that is injured is an employee • Only exemption that possibly would work is if the workers own 100% of the business or all workers are happy family members of owner • Insurance Community University 47

Business Uses Workers Even If They Are Exempt From Mandatory Coverage • Remember, just because there is no workers compensation coverage required, it does not mean the injured worker cannot sue under tort • However, if workers compensation is provided even if not required by law, then injury falls under the workers compensation law (must pay premium) and worker could not sue (there are some extreme exceptions) Insurance Community University 48

Farm Labor • Each state sets definitions and mandatory coverage requirements • If not mandatory, could worker still sue? • If labor contractor does not have workers compensation, could “farm” become liable for injuries? Insurance Community University 49

Farm Labor • Workers compensation protects all • A farm liability policy has an endorsement to provide employee liability for farm labor that does not fall under workers compensation laws Insurance Community University 50

The Farm Worker • Multi-State Exposure • Worker – Normally has low wages – Hard to conform with information requirements to establish an “average weekly wage” – Normally has “no skills” except laborer Insurance Community University 51

The Farm Worker • Dangerous occupation • Worker not “legal” • Payments – Medical – Loss of wages • Migrant and Seasonal Agricultural Workers Protection Act – Federal requirement for “farm” operations to protect the “migrant and seasonal workers” Insurance Community University 52

The Farm Worker • People carrying units • Requirements of MSPA • Labor contractor registration unless the “farmer” • Permission to transport • Protection of workers in units – Major coverage concern Insurance Community University 53

The Farm Worker • Auto liability including protection of migrant passengers – Limits required • $1, 500, 000 (1 -15 seats) • $5, 000 (16+ seats) • Or workers compensation – Transportation considered job-related – Then AL limits to meet state FR requirements plus cargo to cover the workers’ property on the bus or van Insurance Community University 54

The Farm Worker • Workers compensation during transportation – Provided to owner of bus – Labor contractor – Provided for labor contractor by farmer they work for, by PEO or temporary service Insurance Community University 55

The Farm Worker • Considerations – User of the worker is joint and severally liable with labor contractor • Workers compensation (whose? ) • During transportation – Multi-state (3 A and 3 C considerations) • Transportation – Major cat exposure or AL Insurance Community University 56

The Farm Worker • Buses vs. vans • PIP, UM, MP • If work comp, why UM? Insurance Community University 57

OVERVIEW • Workers Compensation and MSAWPA • Where Can Worker Select State for Benefits? • What Would be a Consideration for Selection? Insurance Community University 58

OVERVIEW • • • How Will the Policy Respond? 3 A/3 C Farm Workers Low Wages Not Legal Insurance Community University 59

MSAWPA • Difference between seasonal and migrant workers • Concerns – Wages – Housing – Transportation Insurance Community University 60

MSAWPA • Difference between farm and labor contractor providing labor • Labor contractor considerations • Licenses • Permission to transport • Transportation vehicle inspections Insurance Community University 61

MSAWPA • • • Protection for workers Auto liability Workers compensation Permission to house Migrant/work comp exposure Insurance Community University 62

Upcoming Classes 2/11 2/13 2/20 Insight on Product Liability and Product Recall Tenant Improvements and Betterments Certificates and Additional Insureds 2/26 & Ethics. Privacy and Compliance 27 Insurance Community University