-Part 1 has everything to do with the State and Federal Laws. If the law says the company has to act in a certain manner, then they must follow the law. It also states that if the employer has to pay past those which is paid under the law, they must continue to pay or reimburse the insurance company for the payments made.
-Part 2 In the state of Michigan, if an employer purchased worker’s compensation insurance through the state’s fund, the policy may not include employer’s liability insurance. If this is the case, the employer can purchase a Stop-Gap Insurance
-Part 3 will have a list of every other state the company has operations in. The company is responsible to inform the insurance company in any changes regarding states they work in.
-Part 4 Your Duties if Injury Occurs and what the employer must do. They must provide immediate medical and other services, give the insurance company a list of their agents and information on the injured person and any witnesses, provide all legal documentation related to the injury, cooperate with all parties, and do not make any payments to the injured party.
Part 5 The premium calculated for a work comp policy is based on payroll, experience mod, and the job classification. However, this premium can change based on loss experience and the amount of the overall premium for the policy.
-Part 6 There is only one condition for a work comp policy and that is an inspection. The company can inspect the premises at any time they choose. The inspection is for the job classification and working conditions regarding underwriting.
-The Voluntary Compensation Endorsement will cover individuals that do not need coverage by law but choose to have coverage placed on them. This is typically the owners and/or their families.
-The Premium Calculations for work comp includes job classification, payroll, experience mods, and premium discount. Every job classification will be assigned a code that is 4 digits long. The insurance company will determine the classifications based on the information the company provides. Payroll is Payroll and this will be supplied by the company to the insurance company. The payroll will be broken down for each job classification and the appropriate amount will be determined. The experience mod is determined by the company’s loss history. After reviewing the loss history, the insurance company will decide if the risk is poor, standard, or an above average risk. This mod will either increase or decrease the overall premium. Premium discounts will come into play when the overall premium is high and the company builds in these discounts into the rate.