The cancellation process for Indiana assigned risk policies requires that the servicing carrier receive approval from the ICRB and the Workers Compensation Board of Indiana (WCBI) before they may send cancellation notice. When assigned risk employers chronically fail to pay their premiums by the due date, this results in servicing carriers issuing multiple requests for cancellation to the ICRB and WCBI in one policy period.
Filing PLAN-IN-2014-01 RM, effective 1/1/2015, establishes a new rule on assigned risk premium installments.
Basic Manual Rule 4-l-6-b provides information regarding premium installments and billing applicable to assigned risk policies. The Rule stipulates that once the servicing carrier has issued a second cancellation notice during the policy period, the employer's payment plan privileges are forfeited for the balance of the policy period and payment of the entire outstanding balance of the premium is required to continue coverage.
b. Premium Installment Basis
(4) Upon issuance of a second nonpayment cancellation notice during the policy period, the installment plan privileges are forfeited for the balance of that policy period. To continue coverage, the entire outstanding balance of the premium owed must be paid prior to the cancellation date.