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Proof of Coverage

Explanation of the proof of coverage program used by the WC Board since 1/1/98.;

Overview of NCCI POC
The following information is summarized from the NCCI website.

NCCI's Proof of Coverage (POC) service provides state industrial accident boards and commissions with access to workers compensation coverage information for employers in their state. The service provides key coverage information, including:

  • Policy number
  • Policy effective date
  • Name of insurance provider
  • Federal employer identification number (FEIN)
  • Notices of cancellation and reinstatement
Part of the mission of the workers compensation system is to ensure that all eligible employees are covered by a workers compensation policy. State accident boards are charged with the responsibility of enforcing the state workers compensation laws that have been enacted to ensure that this mission is accomplished. To enforce the workers compensation law, state accident boards require that insurance providers or employers report coverage information whenever a workers compensation policy is initiated, changed, or terminated in the state. The need for coverage information requires the accident boards to establish processes for the collection, entry, and storage of the information received from insurance providers.

Benefits of POC
In most instances, insurance providers submit coverage information to the state accident boards on hard copy, which is then keyed into the state's system. NCCI’s POC service eliminates the manual data entry process performed on a daily basis by the state accident board's staff. With POC, NCCI collects the information and sends it electronically to the state. The state can then deploy more of its staff to focus on compliance monitoring and enforcement activities.

Insurance providers are required to report coverage information to both NCCI and the state accident boards. NCCI’s POC service eliminates this redundant reporting by allowing the insurance provider to report the information one time to a single entity, thereby fulfilling multiple reporting responsibilities. Additionally, NCCI’s POC service allows the insurance provider to use a single format for reporting coverage information. NCCI provides the valuable service of converting the data to the format required by the accident board.

Carrier Reporting - Compliance Requirements
Source: NCCI website
  • Policies— Due immediately after the policy effective date. Renewals due within 10 days after expiration of prior policy.
  • Cancellation & Nonrenewal— Due 10 days prior to the cancellation effective date.
  • Reinstatements— Due within 10 days after the reinstatement effective date.
  • FEIN— Required
  • Fines— No fines are assessed for late reporting or missing data.

The rules and requirements for reporting policy data are contained in the NCCI Workers Compensation Policy Data Reporting Manual data.

Source Documents
Several sources document the carrier reporting requirements for policy and cancellation notices. Although there appear to be some inconsistencies among the documents, we follow the requirements stated above. Below is a summary of each source.

 
1. The Indiana statute requires:
  • notice of coverage within 10 days after the effective date of the policy [IC 22-3-5-2]
  • notice of cancellation given 10 days in advance of the cancellation date [IC 22-3-5-5 (c) (5)]

Here are the relevant statutes:
IC 22-3-5-2. Filing of proofs of insurance required - Fees. An employer required to carry insurance under IC 22-3-2-5 and section 1 of this chapter shall file with the worker's compensation board, in the form prescribed by it, within ten (10) days after the termination of the employer's insurance by expiration or cancellation, evidence of the employer's compliance with section 1...

IC 22-3-5-5 (c) (5) "Any termination of this policy by cancellation shall not be effective as to employees of the insured covered hereby unless at least ten (10) days prior to the taking effect of such cancellation, a written notice giving the date upon which such termination is to become effective has been received by the worker's compensation board of Indiana at its office in Indianapolis, Indiana."

The Indiana Code is available on the State of Indiana website at this address: http://www.state.in.us/legislative/ic/code/.

2. The NCCI Circular POC-98-01 dated February 13, 1998 mirrors the law and requires:
  • the policy information page "must be received by NCCI within (10) days after the effective date of the policy."
  • the cancellation notice "must be received by NCCI within (10) days prior to the cancellation or renewal effective date."

3. The WC Board issued a letter in January 1998 that states:
  • the policy information "is to be received by NCCI within thirty (30) days of procurement, renewal or reinstatement"
  • the cancellation and nonrenewals "are to be received at least ten (10) days prior to cancellation or termination..."

    Note on obsolete Form 18-A: Since 1998, the WC Board of Indiana subscribes to the NCCI Proof of Coverage System, therefore, carriers do not need to send coverage notices (Form 18-A) to the Board. 
4. The Basic Manual, Indiana Special Rules, Appendix A.II.B. requires the carrier to file a copy of each policy, endorsement, cancellation, and reinstatement with the ICRB. However, the rule does not specify a timeframe for reporting.
 

NCCI charges carriers fees, included in the affiliation invoicing, for processing POC data as follows (as of Feb 2011):

  • $1.50 for each new or renewal policy transaction (previously $1.50)
  • $0.00 for each endorsement to those policies, including cancellations, reinstatements, nonrenewals, and change endorsements (previously $0.50)
  • $2.50 for each USLHW policy reported to the USDOL

Delivery of Information to States
NCCI provides an online inquiry to a policy data base of POC information to the Workers Compensation Board of Indiana. The data base is in the IAIABC POC format. In addition, state accident boards may access the information via NCCI's POC Online Inquiry or the Coverage Verification Service.
The Coverage Verification Service can show up to 15 years of policy history.


States Using POC Service
Industrial accident boards and commissions in 37 states use NCCI's POC service as of October 2009. Indiana began January 1, 1998. You can see a list of states and requirements on NCCI's website page "

Proof of Coverage Compliance Guide."

 

How does the WC Board of Indiana process POC requests from the public?
The Board is responsible for proof of coverage in Indiana. It provides an online service from a link on its home page in upper right hand corner "Confirm Employer's Worker's Comp Coverage."

 
Indiana Certificate of Compliance 

Upon request in writing, the Workers Compensation Board of Indiana will issue a Certificate of Compliance, State Form 41321 (R2 6-95).


Policy Data Confidential
Effective July 1, 2013, House Enrolled Act 1320, Section 20 of the bill adds Indiana Code § 27-7-2-40 to treat ICRB policy data as confidential.
 

Related Files

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.