Or. Admin. Code § 836-043-0050

Current through Register Vol. 63, No. 12, December 1, 2024

Section 836-043-0050 - Interstate Assignments

(1) Any employer assigned under this Plan and desiring workers' compensation insurance for operations for physical locations in states other than that covered by the Plan may request its servicing carrier to furnish such insurance in such additional states. If the servicing carrier is licensed in those additional states and will write workers' compensation insurance on a voluntary basis, the servicing carrier must do so on a voluntary basis and in accordance with the law, rates, rules, classifications, and regulations applicable to the voluntary workers' compensation market in those states.

(2) If the servicing carrier does not wish to provide the insurance on a voluntary basis, the servicing carrier may provide assigned risk coverage in such additional states subject to the following:

(a) Workers' compensation insurance may be provided only in accordance with OAR 836-043-0001 to 836-043-0091 in those states that have a Workers' Compensation Insurance Plan that is similar to this Plan and that allows employers applying for coverage under those Plans to obtain coverage for operations in Oregon;

(b) A servicing carrier providing such insurance shall collect all premiums due based on the exposure for the physical operations in those other states. The effective date of such insurance in such additional states shall be the day after premium is received; however, in the event coverage in such additional states is on an "if any" basis, the effective date of such coverage shall be the day following receipt of an acceptable request for such insurance by the servicing carrier. A copy of the policy Information Page and all endorsements, properly identified as a Plan or AR (Assigned Risk) policy, shall be submitted to the appropriate Plan Administrator having jurisdiction in the state where the coverage is effected;

(c) The rates, rating plans, classifications, and policy forms used to provide coverage in such additional states shall be those that are:

(A) Applicable to the assigned risk market;

(B) On file and have been approved by the regulators in those additional states; and

(C) Authorized for use in the assigned risk market by the Plan Administrator;

(d) The servicing carrier must be a signatory to an agreement providing reinsurance for workers' compensation insurance policies issued to assigned risk market employers under the organizing principles in each state where the coverage shall be provided; and

(e) A servicing carrier unwilling or unable to provide insurance for an employer in additional states shall refer the employer to the Plan Administrator or appropriate administrative organization for the states where coverage is needed for instructions and applications.

(3)

(a) An employer who applies for workers' compensation insurance under another state's workers' compensation insurance plan may purchase coverage for operations in Oregon without meeting the application requirements of this Plan, provided:

(A) The employer qualifies for such insurance under the other state's Plan;

(B) The employer is in good faith entitled to insurance under this Plan;

(C) The other state's Plan is similar to this Plan;

(D) That Plan also provides for interstate assignments; and

(E) The payroll for the employer's operation in Oregon is not greater than the payroll in the other state;

(b) The rates, rating plans, classifications and policy forms used to provide coverage in Oregon shall be those that are applicable to assigned risk market risks in Oregon and are on file and have been approved by the Insurance Commissioner and authorized for use in the assigned risk market by the Plan Administrator;

(c) The administrator of the other Plan is authorized to assign employers with operations in Oregon to the other Plan's servicing carriers, subject to the following conditions:

(A) The servicing carrier must be a signatory to the organizing principles in Oregon. In addition, if the payroll for the employer's operation in Oregon is greater than $250,000, the servicing carrier must also be a servicing carrier in Oregon. If there is no eligible servicing carrier in Oregon that is also an insurer in the state of assignment, then the Plan Administrator may remove the payroll limitation or may require the employer to submit a separate application for coverage in Oregon; and

(B) The other state's Plan must give the Plan Administrator in Oregon similar authority to make interstate assignments.

(d) With regard to interstate assignments and policies, this Plan shall have jurisdiction over all disputes resulting from the application of rules, programs, and procedures that are specific to Oregon. Disputes regarding application requirements shall be under the jurisdiction of the state's Plan where the application was filed.

(4) This section is not applicable for unknown or unanticipated operations or exposures for which coverage may be available under the Residual Market Limited Other States Coverage Endorsement.

Or. Admin. Code § 836-043-0050

ID 4-1994, f. & cert. ef. 4-19-94; ID 10-1996, f. 6-27-96, cert. ef. 7-1-96; ID 18-2008, f. 12-9-08, cert. ef. 1-1-09

Stat. Auth.: ORS 656.427, 656.730 & 731.244

Stats. Implemented: ORS 656.427, 656.730 & 737.265