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Coal Exposure, But Not a Coal Mine

The extra premium charge for this disease exposure is reported under Code 0164.

Liability Under MSHA
Guidance from the U.S. Department of Labor, Mine Safety and Health Administration, District 8 (includes Indiana) indicates that truckers who do not operate coal mines, but who have a coal exposure, are subject to the Mine Safety and Health Act of 1977 (MSHA).
 
Mines Subject to Act, Sec.4 states: Each coal or other mine, the products of which enter commerce, or the operations or products of which affect commerce, and each operator of such mine, and every miner in such mine shall be subject to the provisions of this Act. 
 
The definitions in the Mine Act under Sec.3, Item (d) states "operator" means any owner, lessee, or other person who operates, controls, or supervises a coal or other mine or any independent contractor performing services or construction at such mine." 
 
Therefore, trucking employers who do not operate coal mines, but who enter onto mine property to perform services are subject to the provisions of the Federal Mine Safety and Health Act of 1977. 
 
 
Training
Contractors who perform services on mine property are subject to required training provisions.
 
Contact for training requirements in Indiana (as of December 2008):
Leland Payne
Education Field Services
812-882-7617 Ext. 118
 
 
Premium Charge
An additional premium is charged for employers who do not operate coal mines, but who have a coal exposure under the Federal Mine Safety and Health Act of 1977 (MSHA).
 
The extra premium charge for this disease exposure is reported under:

Code 0164 "For reporting disease experience in connection with any classification other than coal mining where there is liability under the Federal Coal Mine Health & Safety Act."
The premium charge is equal to 10% of the nonratable disease element for Code 1005 "Coal Mining - Surface & Drivers."
 

Background
Code 0164 is typically used in Indiana for truckers who haul coal on contract. Code 0164 does not have a rate showing in the Indiana rate pages. However, the Residual Market Application Processing System (RMAPS) will calculate the rate.

The Basic Manual Rule 3.A.7.b., Disease Loading (old rule on page D1), permits the carrier to apply supplemental disease loading or portion thereof, based on the carrier's judgment after an evaluation of the insured's operations.

We are aware of situations where the insured is a sole proprietor who is not covered by the state act (did not elect to be covered). The person may still need federal coverage. In such cases, the person's payroll would only be applied to the rate for code 0164.

The 10% guideline was established in a 1973 item filing named "Specific Disease Premium- Determination Endorsement - Former Coal Mine Operator Charge - Flat charge for Coal Merchants and Employers with Coal Mine Exposure." It reads in part:

"Disease rates for coal mine risks contemplate coverage for the Federal Coal Mine Health and Safety Act. For non-coal mining risks with substantial underground coal mine exposure charge 10% of the applicable underground coal mine disease rate. For all other affected employers charge 10% of the applicable surface coal mine disease rate."

Rate History

Effective Date
Code 1005 Full Rate
Code 1005 Nonratable Disease Element
Code 0164 Rate
(10% of nonratable)

01/01/2013

7.00
3.21
0.32

01/01/2012

8.13
4.28
0.43

01/01/2011

7.29
4.28
0.43

01/01/2010

6.55
3.66
0.37

01/01/2009

7.30
4.28
0.43
01/01/2008
7.60
3.97
0.40
01/01/2007
7.19
3.95
0.40

01/01/2006

6.88

3.88

0.39

01/01/2005

6.98

4.15

0.42

01/01/2004

7.12

4.22

0.42

01/01/2003

7.01

4.12

0.41

01/01/2002

7.06
4.00
0.40

01/01/2001

5.46

2.10

0.21

07/01/2000

5.17

2.09

0.21

01/01/2000

5.04

2.07

0.21

07/01/1999

5.82

2.56

0.26

01/01/1999

5.71

2.54

0.25


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The material in this document has been prepared and shared for informational purposes only and should not be relied upon as legal advice on any particular situation.