CompWest Special Announcement
AB 2883 – Changes to California Workers’ Compensation Law effective January 1, 2017
Effective January 1, 2017, requirements for Exclusions are changing:
- Corporations: Requirement that 100% of stock be owned by Officers and/or Directors has been eliminated. However, only Officers or Directors who own 15% or more of the stock of the corporation can be excluded.
- Partnerships and Limited Liability Companies: Only General Partners of Partnership or Managing Members of a Limited Liability Company are eligible for exclusion if the entity is a Partnership or Limited Liability Company.
- Revocable Trusts: Grantors of Revocable Trusts are no longer deemed shareholders and are no longer eligible for exclusion.
- In order to exclude a Corporate Officer, Member of a Board of Directors, General Partner, or Managing Member of an LLC, each individual to be excluded must sign a written waiver of workers’ compensation benefits certifying under penalty of perjury that he/she is a qualifying Officer, Director, General Partner, or Managing Member of an LLC.
- The forms must be signed by the individual being excluded. Employer or employer representatives may not sign in place of the individual being excluded.
- Exclusions are effective as of the date we receive and accept properly completed and signed waiver forms.
- Once a waiver is accepted, new waivers will only be required if there is a change in status or individual wishes to change their status.
For policies in-force on January 1, 2017:
All policyholders with existing exclusions are being notified by mail of the changes no later than November 15, 2016. Communication includes copies of waiver forms and the guidelines for returning signed waivers to be received by us no later than December 31, 2016, in order to keep existing waivers in place without lapse.
For New Business effective January 1, 2017 and later:
Agents must upload properly completed and signed waivers to Media View prior to the effective date in order for exclusions to be effective upon inception.
For Renewals effective January 1, 2017 and later:
Agents must email properly completed and signed waivers to firstname.lastname@example.org prior to the effective date in order for exclusions to be effective upon inception.