Section 7-214. INSURANCE COVERAGE

 

214.1The provisions of this section set forth the policies and procedures which apply to the administration and enforcement of the coverage provisions of the Act.

 

214.2Under §35 of the Act [§36-334, D.C. Code, 1981 ed.], all employers subject to the Act shall secure the payment of compensation for their employees.

 

214.3The Office shall prescribe standardized forms to be utilized by employers and insurers.

 

214.4Employers and insurers shall provide the Department with all information required to determine the availability of and the adequacy of insurance coverage.

 

214.5Employers shall exercise their responsibility to secure the payment of compensation for their employees by maintaining insurance coverage; Provided, that an employer may apply for authorization to be a self-insurer as set forth in §217 of this Chapter.

 

214.6The duty to maintain insurance coverage shall continue until such time as an employer actually qualifies as a self-insurer.

 

214.7New employers shall obtain coverage prior to hiring any employee.

 

214.8After an employer has made a bona fide application for coverage which has been accepted on behalf of a carrier, carriers shall share in coverage responsibility.

 

214.9A bona fide application for coverage may be verbal or written.

 

214.10Carrier responsibility for coverage shall extend until coverage is actually provided the employer.

 

214.11Notice of coverage provided an employer shall be given to the Office by insurers.

 

214.12Notice of termination shall be given to the Office by insurers.

 

214.13Upon receipt of a valid termination notice from a carrier, the employer has the responsibility to apply for and obtain new coverage.

 

214.14Agencies or carriers who refuse to provide coverage on a voluntary basis shall advise the employer concerning the availability of coverage under the existing Workers' Compensation Insurance Plan of the National Council on Compensation Insurance and provide the application form to the employer.

 

214.15The Council shall provide the Office with the following information:

 

(a)A copy of the assignment letter;

 

(b)A copy of the letter relieving carrier of assignment;

 

(c)Annually, the total number of new assignments, total number of renewals, and estimated total premium dollars; and

 

(d)Any other information that the Office may require.

 

214.16The Office shall assess a penalty of not less than $1,000 and not more than $10,000 for failure to maintain the insurance required by the Act.

 

source

Notice of Final Rulemaking published at 41 DCR 3213 (June 3, 1994).