31A-22-1011 - Workers' compensation coverage waivers. - Utah Statutes

31A-22-1011. Workers' compensation coverage waivers.
(1) As used in this section:
(a) "Business entity" means:
(i) a sole proprietorship;
(ii) a corporation;
(iii) a partnership;
(iv) a limited liability company; or
(v) an entity similar to one described in Subsections (1)(a)(i) through (iv).
(b) "Waiver" means a workers' compensation coverage waiver issued under this section.
(2) (a) Notwithstanding Section 31A-21-104, if the information required by Subsection(3) is provided, an insurer authorized under this title to issue a workers' compensation policy mayissue a workers' compensation coverage waiver to a business entity that:
(i) elects not to include an owner, partner, or corporate officer or director as an employeeunder a workers' compensation policy in accordance with Section 34A-2-103 and Subsection34A-2-104(4); and
(ii) employs no other employee on the day on which the insurer issues the waiver to thebusiness entity.
(b) As of the day on which a business entity described in Subsection (2)(a) employs anemployee other than an owner, partner, or corporate officer or director described in Subsection(2)(a):
(i) the business entity's waiver is invalid; and
(ii) the business entity is required to provide workers' compensation coverage for thatemployee in accordance with Section 34A-2-201.
(3) To obtain a waiver, a business entity shall submit to the insurer that issues the waiver:
(a) a copy of two or more of the following:
(i) the business entity's federal or state income tax return that shows business income forthe complete taxable year that immediately precedes the day on which the business entity submitsthe information;
(ii) a valid business license;
(iii) a license to engage in an occupation or profession, including a license under Title59, Occupations and Professions; or
(iv) documentation of an active liability insurance policy that covers the business entity'sactivities; or
(b) a copy of an item listed in Subsection (3)(a) and a copy of two or more of thefollowing:
(i) proof of a bank account for the business entity;
(ii) proof that for the business entity there is:
(A) a telephone number; and
(B) a physical location; or
(iii) an advertisement of services in a newspaper of general circulation or telephonedirectory showing the business entity's:
(A) name; and
(B) contact information.
(4) (a) An insurer that issues a waiver shall report to the Labor Commission for eachbusiness entity to which the insurer issues a waiver:

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(i) the name, address, and telephone number of the business entity;
(ii) a name of an individual who can be contacted on behalf of the business entity; and
(iii) other information required by the Labor Commission, by rule made in accordancewith Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(b) The Labor Commission, by rule made in accordance with Title 63G, Chapter 3, UtahAdministrative Rulemaking Act, shall determine how frequently an insurer shall make a reportrequired by Subsection (4)(a), except that the Labor Commission shall require that a report besubmitted at least monthly.
(5) (a) The Labor Commission may investigate a business entity to determine whetherthe business entity validly elects to not cover an owner, partner, or corporate officer or director asan employee under a workers' compensation policy in accordance with Section 34A-2-103.
(b) If the Labor Commission determines that a business entity's election as provided inthis section is invalid, the Labor Commission may:
(i) prohibit a business entity from using a waiver obtained under this section; and
(ii) take any action provided for under Title 34A, Chapter 2 or 3 for failure to obtainworkers' compensation coverage for an employee.

Enacted by Chapter 263, 2008 General Session