48-2709 Workers' compensation coverage; allocation of responsibility; information to administrator of Nebraska Workers' Compensation Court; notice; posting; contents; notice of cancellation, n - Nebraska Statutes

48-2709. Workers' compensation coverage; allocationof responsibility; information to administrator of Nebraska Workers' CompensationCourt; notice; posting; contents; notice of cancellation, nonrenewal, or termination;rights of client.(1) The responsibility to obtain workers' compensation coveragefor employees covered by the professional employer agreement and for otheremployees of the client shall be allocated in the professional employer agreementto the client, the professional employer organization, or both, in accordancewith this section. If any such responsibility is allocated to the professionalemployer organization, the professional employer organization shall:(a) Advisethe client of the provisions of subdivisions (9) and (10) of section 48-115;(b) Advisethe client of its obligation to obtain an additional workers' compensationinsurance policy if the professional employer organization's policy limitscoverage to co-employees as specified in the professional employer agreement;and(c) Provide the client with the name of the insurer providing coverage,the policy number, claim notification instructions, and any itemized chargesthat are to be made for workers' compensation coverage within ten days afterenrollment.(2)(a) If all employees of the client are not covered employeesunder the professional employer agreement, then a workers' compensation insurancepolicy obtained by the professional employer organization to cover employeesof the client may be written to limit coverage to those employees who areco-employees of the professional employer organization and the client. Ifa professional employer organization's policy limits coverage to co-employeesas specified in the professional employer agreement, then the client shallobtain an additional workers' compensation insurance policy. The policy obtainedby the client shall be written to cover any and all employees not coveredby the professional employer organization's policy, including any potentialnew or unknown employees. All insurance policies issued pursuant to this subsectionshall be subject to and shall comply with the requirements of this subsectionand any rule or regulation adopted by the Department of Insurance.(b) If allemployees of the client are covered employees under the professional employeragreement, then a workers' compensation insurance policy obtained by the professionalemployer organization to cover employees of the client must be written tocover any and all employees of the client, including potential new or unknownemployees that may not be covered employees under the agreement.(c) A professionalemployer organization shall not split coverage that it obtains for a clientbetween two or more policies.(d) A professional employer organizationshall not split coverage for its direct-hire employees between two or morepolicies.(e) The Department of Insurance may adopt and promulgate rulesand regulations to implement this subsection.(3) If the professionalemployer agreement allocates responsibility to the professional employer organizationto obtain workers' compensation coverage only for co-employees, then the professionalemployer organization shall provide the following information to the administratorof the Nebraska Workers' Compensation Court. Such information shall be providedfor any such professional employer agreement in effect on January 1, 2012,and prior to the effective date of any new professional employer agreementor any amendment of an agreement adding such a provision after January 1,2012, and shall be provided in a form and manner prescribed by the administrator:(a) The namesand addresses of the client and the professional employer organization;(b) The effectivedate of the professional employer agreement;(c) A description ofthe employees covered under the professional employer agreement;(d) Evidencethat any and all other employees of the client are covered by a valid workers'compensation insurance policy; and(e) Any other information the administratormay require regarding workers' compensation coverage of the professional employerorganization, the client, or the covered employees.(4) If workers' compensationcoverage for a client's employees covered by the professional employer agreementand for other employees of the client is not entirely available in the voluntarymarket, then assigned risk workers' compensation coverage written subjectto section 44-3,158 may only be written on a single policy that covers allemployees and co-employees of the client. Assigned risk workers' compensationinsurance for the professional employer organization may also be written,but only on a basis that covers its direct-hire employees and excludes employeesand co-employees of its clients. The Department of Insurance may adopt andpromulgate rules and regulations to implement this subsection.(5) If a masterpolicy or multiple coordinated policy providing coverage to a client is obtainedby a professional employer organization, then the professional employer organizationshall provide the client with a notice that the client shall conspicuouslypost at its workplace. Such notice shall provide the name and address of theworkers' compensation insurer and the individual to whom claims shall be directed.If more than one workers' compensation insurer provides coverage for employeesand co-employees of the client, the client shall post such information forall such workers' compensation insurers.(6) Both the client and the professionalemployer organization shall be considered the employer for purposes of coverageunder the Nebraska Workers' Compensation Act. The protection of the exclusiveremedy provision of the act shall apply to the professional employer organization,to the client, and to all covered employees and other employees of the clientregardless of which co-employer obtains such workers' compensation coverage.(7) If a clientreceives notice of the cancellation, nonrenewal, or termination of workers'compensation coverage obtained by the professional employer organization,then the client may withdraw from the professional employer agreement withoutpenalty unless the client is notified by the professional employer organizationof replacement coverage within fifteen days after the notice.(8) A professionalemployer organization shall not impose any fee increase on a client basedon the actual or anticipated cost of workers' compensation coverage withoutgiving the client at least thirty days' advance notice and an opportunityto withdraw from the professional employer agreement without penalty.(9) The professionalemployer organization shall not make any materially inaccurate, misleading,or fraudulent representations to the client regarding the cost of workers'compensation coverage. If the professional employer organization charges theclient an itemized amount for workers' compensation coverage, the professionalemployer organization shall provide the client with an accurate and concisedescription of the basis upon which it was calculated and the services thatare included. A professional employer organization shall not charge a clientan itemized amount for workers' compensation coverage that is materially inconsistentwith the actual amounts that the professional employer organization is chargedby the insurer, given reasonably anticipated loss-sensitive charges, if applicable,reasonable recognition of the professional employer organization's costs,and a margin for profit. SourceLaws 2010, LB579, § 9.Operative Date: January 1, 2012 Cross ReferencesNebraska Workers' Compensation Act, see section 48-1,110.