State Codes and Statutes

State Codes and Statutes

Statutes > Nebraska > Chapter48 > 48-144_03

48-144.03. Workers'compensation insurance policy; masterpolicy obtained by professional employer organization; noticeof cancellation or nonrenewal; effective date.(1)Notwithstanding policy provisions that stipulate a workers' compensation insurancepolicy to be a contract with a fixed term of coverage that expires at theend of the term, coverage under a workers' compensation insurance policy shallcontinue in full force and effect until notice is given in accordance withthis section.(2) No cancellation of a workers' compensation insurancepolicy within the policy period shall be effective unless notice of the cancellationis given by the workers' compensation insurer to the Nebraska Workers' CompensationCourt and to the employer. No such cancellation shall be effective until thirtydays after the giving of such notices, except that the cancellation may beeffective ten days after the giving of such notices if such cancellation isbased 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 theinsurer for the employer, (c) failure of the employer to reimburse deductiblelosses 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, tocomply with sections 48-443 to 48-445.(3) No workers' compensation insurance policy shall expireor lapse at the end of the policy period unless notice of nonrenewal is givenby the workers' compensation insurer to the compensation court and to theemployer. No workers' compensation insurance policy shall expire or lapseuntil thirty days after the giving of such notices, except that a policy mayexpire or lapse ten days after the giving of such notices if the nonrenewalis 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 theinsurer for the employer, (c) failure of the employer to reimburse deductiblelosses 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, tocomply 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) Thissubsection applies to workers' compensation policies other than master policiesor multiple coordinated policies obtained by a professional employer organization.(b) No cancellationof a policy within the policy period shall be effective unless notice of thecancellation is given by the workers' compensation insurer to the compensationcourt and to the employer. No such cancellation shall be effective until thirtydays after giving such notices, except that the cancellation may be effectiveten 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) nonpaymentof premium due the insurer under any policy written by the insurer for theemployer, (iii) failure of the employer to reimburse deductible losses asrequired 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 complywith sections 48-443 to 48-445.(c) No policy shall expire or lapse atthe 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 policyshall expire or lapse until thirty days after giving such notices, exceptthat a policy may expire or lapse ten days after the giving of such noticesif the nonrenewal is based on (i) notice from the employer to the insurerto not renew the policy, (ii) nonpayment of premium due the insurer underany policy written by the insurer for the employer, (iii) failure of the employerto reimburse deductible losses as required under any policy written by theinsurer for the employer, or (iv) failure of the employer, if covered pursuantto section 44-3,158, to comply with sections 48-443 to 48-445.(6)(a) Thissubsection applies to workers' compensation master policies obtained by aprofessional employer organization.(b) No cancellation of a master policywithin the policy period shall be effective unless notice of the cancellationis given by the workers' compensation insurer to the compensation court andto the professional employer organization. No such cancellation shall be effectiveuntil thirty days after giving such notices.(c) No termination ofcoverage for a client or any employees of a client under a master policy withinthe policy period shall be effective unless notice is given by the workers'compensation insurer to the compensation court and to the professional employerorganization. No such termination of coverage shall be effective until thirtydays after giving such notices, except that the termination of coverage maybe effective ten days after the giving of such notices if such terminationis based on (i) notice from the client to the professional employer organizationor the insurer to terminate the coverage or (ii) notice from the professionalemployer organization of the client's nonpayment of premium.(d) No masterpolicy shall expire or lapse at the end of the policy period unless noticeof nonrenewal is given by the workers' compensation insurer to the compensationcourt and to the professional employer organization. No master policy shallexpire or lapse until thirty days after giving such notices.(e) Notice of the cancellationor nonrenewal of a master policy or the termination of coverage for a clientor the employees of a client under such a policy shall be given by the professionalemployer organization to the client within fifteen days after the cancellation,nonrenewal, or termination unless replacement coverage has been obtained.(7)(a) Thissubsection applies to workers' compensation multiple coordinated policiesobtained by a professional employer organization.(b) No cancellation ofa policy within the policy period shall be effective unless notice of thecancellation is given by the workers' compensation insurer to the compensationcourt, to the professional employer organization, and to the client employer.No such cancellation shall be effective until thirty days after giving suchnotices, except that the cancellation may be effective ten days after givingsuch notices if such cancellation is based on (i) notice from the client tothe professional employer organization or the insurer to cancel the policy,(ii) notice from the professional employer organization of the client's nonpaymentof premium or failure to reimburse deductibles for policies issued pursuantto section 48-146.03, (iii) failure of the client, if covered pursuant tosection 44-3,158, to comply with sections 48-443 to 48-445, or (iv) for policiesissued pursuant to section 44-3,158, nonpayment of premium or failure to reimbursedeductibles for policies issued pursuant to section 48-146.03.(c) No terminationof coverage for any employees of the client during the policy period shallbe effective unless notice is given by the workers' compensation insurer tothe compensation court, to the professional employer organization, and tothe client. No such termination of coverage shall be effective until thirtydays after giving such notices, except that the termination of coverage maybe effective ten days after the giving of such notices if such terminationis based on (i) notice from the client to the professional employer organizationor the insurer to terminate the coverage or (ii) notice from the professionalemployer organization of the client's nonpayment of premium or failure toreimburse deductibles for policies issued pursuant to section 48-146.03.(d) No policyshall expire or lapse at the end of the policy period unless notice of nonrenewalis given by the workers' compensation insurer to the compensation court, tothe professional employer organization, and to the client. No policy shallexpire or lapse until thirty days after giving such notices, except that apolicy may expire or lapse ten days after the giving of such notices if thenonrenewal is based on (i) notice from the client to the professional employerorganization or the insurer to not renew the policy, (ii) notice from theprofessional employer organization of the client's nonpayment of premium orfailure 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 complywith 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 policiesissued pursuant to section 48-146.03.(e) An insurer may refrain from sendingnotices required by this subsection to a professional employer organization'sclient based upon the professional employer organization's representationthat coverage has been or will be replaced. Such representation shall notabsolve the insurer of its responsibility to continue coverage if such representationproves inaccurate.(8) Notwithstandingother provisions of this section, if replacement workers'compensation insurance coverage hasbeen secured with another workers' compensation insurer, thenthe cancellation or nonrenewal ofthe policy or the termination of coverage for a client or employees of a clientunder the policy shall be effective as of the effective date ofsuch other insurance coverage.(9) The notices required bythis section shall state the reason for the cancellation or nonrenewal ofthe policy or termination ofcoverage for a client or employees of a client under a policy.(10) The notices requiredby this section shall be provided in writing and shall be deemed given uponthe mailing of such notices by certified mail, except that notices from insurersto the compensation court may be provided by electronic means if such electronicmeans is approved by the administrator of the compensation court. If noticeis provided by electronic means pursuant to such an approval, it shall bedeemed given upon receipt and acceptance by the compensation court. SourceLaws 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.AnnotationsSubsection (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).