40-5403.Rules and regulations;requirements.The commissioner by rules and regulations, shall requirethat:
(a) Controlled insurance programs shall:
(1) Establish a method for quarterly reporting of the participant'srespective claims details and loss information to that participant;
(2) provide that cancellation of any or all of the coverage provided to aparticipant prior to completion of work on the applicable project, shallrequire the owner or contractor who establishes a controlled insurance programto either replace the insurance or pay the subcontractor's cost to do so;
(3) not charge enrolled participants who are not the sponsoring participants,a deductible in excess of $2,500 per occurrence or a per claim assessment bythesponsor;
(4) keep self-insured retentions fully funded or collateralized by the owneror contractor establishing the controlled insurance program. This paragraphshall not apply to deductible programs;
(5) disclose specific requirements for safety or equipment prior to acceptingbids from contractors and subcontractors on a construction project; and
(6) allow monetary fines for alleged safety violations to be assessed only bygovernment agencies.
(b) If a controlled insurance program includes general liabilitycoverage for the participants, then:
(1) Coverage for completed operations liability shall not, after substantialcompletion of a construction project, be canceled, lapse or expire before thelimitation on actions has expired as established by subsection (b) of K.S.A.60-513, and amendments thereto, but in no case greater than 10 years, and ifanother carrier takes responsibility for completed operations liabilitycoverage, any and all prior completed operation liability carriers will bereleased from completed operations liability unless specified otherwise insubsequent policies;
(2) general liability coverage shall not be required of project participantsexcept for liabilities not arisingon the site or sites of the construction project. Any coverage maintained bytheparticipants shall cover liabilities not arising on the site or sites of theconstruction project;
(3) the general liability coverage provided to participants shall provide forseverability of interest, except with respect to limits of liability, so thatparticipants shall be treated as ifseparately covered under the policy;
(4) participants shall be given the same shared limits of liability coverageas applies to the sponsoring participant under the controlled insuranceprogram; and
(5) participants shall not be required to waive rights of recovery for claimscovered by the controlled insurance program against another participant in thecontrolled insurance program covered by general liability insurance provided bythe controlled insurance program.
(c) If a controlled insurance program includes coverage for theworkers compensation liabilities of the participants, then:
(1) Workers compensation coverage shall include all workers compensation forwhich payroll attributable to the contractual agreement has been reported andthe premiums collected covering all services performed incidental to, arisingout of or emanating from the construction site or sites and the coming or goingto or from the site or sites; and
(2) participants shall not be required to provide employment to a worker whohas been injured on the job unless:
(A) The worker's treating health care provider certifies that the worker isfit toperform the participant's work on the job site consistent with the treatingphysician's limitations; and
(B) the employer has the pre-injury job or modified work available.
Nothing in this subsection or any rules and regulations adopted pursuant to thecontrolled insurance program act shall affect any rights, remedies or dutiesunder the workers compensation act or any other state or federal employmentlaw.
40-5403.Rules and regulations;requirements.The commissioner by rules and regulations, shall requirethat:
(a) Controlled insurance programs shall:
(1) Establish a method for quarterly reporting of the participant'srespective claims details and loss information to that participant;
(2) provide that cancellation of any or all of the coverage provided to aparticipant prior to completion of work on the applicable project, shallrequire the owner or contractor who establishes a controlled insurance programto either replace the insurance or pay the subcontractor's cost to do so;
(3) not charge enrolled participants who are not the sponsoring participants,a deductible in excess of $2,500 per occurrence or a per claim assessment bythesponsor;
(4) keep self-insured retentions fully funded or collateralized by the owneror contractor establishing the controlled insurance program. This paragraphshall not apply to deductible programs;
(5) disclose specific requirements for safety or equipment prior to acceptingbids from contractors and subcontractors on a construction project; and
(6) allow monetary fines for alleged safety violations to be assessed only bygovernment agencies.
(b) If a controlled insurance program includes general liabilitycoverage for the participants, then:
(1) Coverage for completed operations liability shall not, after substantialcompletion of a construction project, be canceled, lapse or expire before thelimitation on actions has expired as established by subsection (b) of K.S.A.60-513, and amendments thereto, but in no case greater than 10 years, and ifanother carrier takes responsibility for completed operations liabilitycoverage, any and all prior completed operation liability carriers will bereleased from completed operations liability unless specified otherwise insubsequent policies;
(2) general liability coverage shall not be required of project participantsexcept for liabilities not arisingon the site or sites of the construction project. Any coverage maintained bytheparticipants shall cover liabilities not arising on the site or sites of theconstruction project;
(3) the general liability coverage provided to participants shall provide forseverability of interest, except with respect to limits of liability, so thatparticipants shall be treated as ifseparately covered under the policy;
(4) participants shall be given the same shared limits of liability coverageas applies to the sponsoring participant under the controlled insuranceprogram; and
(5) participants shall not be required to waive rights of recovery for claimscovered by the controlled insurance program against another participant in thecontrolled insurance program covered by general liability insurance provided bythe controlled insurance program.
(c) If a controlled insurance program includes coverage for theworkers compensation liabilities of the participants, then:
(1) Workers compensation coverage shall include all workers compensation forwhich payroll attributable to the contractual agreement has been reported andthe premiums collected covering all services performed incidental to, arisingout of or emanating from the construction site or sites and the coming or goingto or from the site or sites; and
(2) participants shall not be required to provide employment to a worker whohas been injured on the job unless:
(A) The worker's treating health care provider certifies that the worker isfit toperform the participant's work on the job site consistent with the treatingphysician's limitations; and
(B) the employer has the pre-injury job or modified work available.
Nothing in this subsection or any rules and regulations adopted pursuant to thecontrolled insurance program act shall affect any rights, remedies or dutiesunder the workers compensation act or any other state or federal employmentlaw.
40-5403.Rules and regulations;requirements.The commissioner by rules and regulations, shall requirethat:
(a) Controlled insurance programs shall:
(1) Establish a method for quarterly reporting of the participant'srespective claims details and loss information to that participant;
(2) provide that cancellation of any or all of the coverage provided to aparticipant prior to completion of work on the applicable project, shallrequire the owner or contractor who establishes a controlled insurance programto either replace the insurance or pay the subcontractor's cost to do so;
(3) not charge enrolled participants who are not the sponsoring participants,a deductible in excess of $2,500 per occurrence or a per claim assessment bythesponsor;
(4) keep self-insured retentions fully funded or collateralized by the owneror contractor establishing the controlled insurance program. This paragraphshall not apply to deductible programs;
(5) disclose specific requirements for safety or equipment prior to acceptingbids from contractors and subcontractors on a construction project; and
(6) allow monetary fines for alleged safety violations to be assessed only bygovernment agencies.
(b) If a controlled insurance program includes general liabilitycoverage for the participants, then:
(1) Coverage for completed operations liability shall not, after substantialcompletion of a construction project, be canceled, lapse or expire before thelimitation on actions has expired as established by subsection (b) of K.S.A.60-513, and amendments thereto, but in no case greater than 10 years, and ifanother carrier takes responsibility for completed operations liabilitycoverage, any and all prior completed operation liability carriers will bereleased from completed operations liability unless specified otherwise insubsequent policies;
(2) general liability coverage shall not be required of project participantsexcept for liabilities not arisingon the site or sites of the construction project. Any coverage maintained bytheparticipants shall cover liabilities not arising on the site or sites of theconstruction project;
(3) the general liability coverage provided to participants shall provide forseverability of interest, except with respect to limits of liability, so thatparticipants shall be treated as ifseparately covered under the policy;
(4) participants shall be given the same shared limits of liability coverageas applies to the sponsoring participant under the controlled insuranceprogram; and
(5) participants shall not be required to waive rights of recovery for claimscovered by the controlled insurance program against another participant in thecontrolled insurance program covered by general liability insurance provided bythe controlled insurance program.
(c) If a controlled insurance program includes coverage for theworkers compensation liabilities of the participants, then:
(1) Workers compensation coverage shall include all workers compensation forwhich payroll attributable to the contractual agreement has been reported andthe premiums collected covering all services performed incidental to, arisingout of or emanating from the construction site or sites and the coming or goingto or from the site or sites; and
(2) participants shall not be required to provide employment to a worker whohas been injured on the job unless:
(A) The worker's treating health care provider certifies that the worker isfit toperform the participant's work on the job site consistent with the treatingphysician's limitations; and
(B) the employer has the pre-injury job or modified work available.
Nothing in this subsection or any rules and regulations adopted pursuant to thecontrolled insurance program act shall affect any rights, remedies or dutiesunder the workers compensation act or any other state or federal employmentlaw.
