Policy
Name:
|
Successorship
|
Policy #:
|
EP-19-02
|
Code/Rule
Reference
|
ORC 4123.32(B)
and OAC 4123-17-02.
|
Effective
Date:
|
January 1,
2016
|
Approved:
|
Ronald L.
Suttles, Interim Chief Employer Services
|
Origin:
|
Employer
Policy
|
Supersedes:
|
Successorship
Liability policy issued September 16, 2007, revised May 3, 2008. Experience
Combine Complaint Policy issued June 1, 2008, last revised October 17, 2011.
|
History:
|
New policy
issued May 7, 2018.
|
Review
Date:
|
January 1,
2021
|
I. Policy Purpose
BWC
will transfer experience, rights and obligations, and workers’ compensation
coverage to succeeding employers in accordance with all applicable laws and
rules.
II. Applicability
This
policy applies to all BWC business units responsible for the review and
processing of successions, employers, and their authorized representatives.
III. Definitions
A.
De facto: Actually, or in reality.
B.
Experience period
data: Payroll and
claims history used to calculate an employer’s experience modification (EM).
C.
Experience
modification (EM): As defined
in OAC 4123-17-03(D).
D.
Experience period: As defined in OAC 4123-17-03(A)(1).
E.
Predecessor: The employer associated with the
business prior to the succession.
F.
Successor: The employer associated with the
business after the succession.
G.
True-up: Annual reconciliation of estimated
payroll and actual payroll. All employers must file annual payroll after the
conclusion of the policy year. BWC will calculate any premium obligation or
credit for the completed policy year.
IV. Policy
A.
Responsibilities.
1.
The successor must
notify BWC if it succeeds another employer, in whole or in part, in the
operation of a business.
2.
The successor must
preserve the predecessor’s payroll records for the five years preceding the
effective date of the succession.
3.
BWC will provide the
parties to a transfer the Notification of Business Acquisition/Merger or
Purchase/Sale (U-118)
form and instructions to complete the transfer of the appropriate payroll and
claims. If the successor filed an Application for Ohio Workers’ Compensation
Coverage (U-3) and
completed the Business purchase/Associated policy information section, a U-118
may not be needed.
a.
BWC will review the
completed form and, if questions arise, conduct a premium audit of each party’s
workers’ compensation policy.
b.
BWC may not require
a U-118 if sufficient supporting documentation is received from both parties.
B.
Experience
modification (EM) data transfer.
1.
BWC will transfer
the predecessor’s experience period data under the workers’ compensation law to
the successor, regardless of whether the predecessor’s transfer to the
successor was voluntary or through an intermediary bank or receivership, if any
of the following criteria are met:
a.
The successor
expressly or impliedly agrees to assume such obligations.
b.
The succession
transaction amounts to a de facto consolidation or merger.
c.
The successor is
merely a continuation of the predecessor.
d.
The succession
transaction is entered into for the purpose of escaping obligations under the
workers’ compensation law.
2.
BWC will not
transfer the predecessor’s experience period data to the successor if the
following three conditions are met:
a.
There is a material
change in ownership;
i.
There must be an
outright sale (no association between seller and buyer).
ii.
In the case of a
continuation in ownership, such as a change in partnership, the owner’s
interest must have been less than 1/3 ownership before the change or less than
1/2 ownership after the change.
iii. If there is a family relationship or
other connection between the predecessor and successor, BWC does not consider
the sale of the entity to be a material change in ownership.
b.
There is a change in
governing classification; and
c.
There is a change in
process and hazard.
i.
There must be a
total change in operations or industrial pursuit, or a totally new way of
performing the work, such as providing the service or handling the material,
that dramatically changes the degree of hazard under the successor. An
evaluation by BWC’s Underwriting Department, a rating inspection by BWC’s Audit
Department, or a consultation with BWC’s Division of Safety & Hygiene may
be required.
ii.
There is the
possibility to meet the “change in governing classification” requirement and
not meet the change in process and hazard. This situation could occur if BWC
applies a new manual classification due to changes implemented by the
successor; but, the successor uses the same processes, machinery, equipment,
and tools as the predecessor. In this situation, the same degree of hazard
exists.
iii. The successor must provide documentation
to support a substantial modification in process and hazard.
3.
In addition to
section IV.B.2, BWC will not transfer the predecessor’s experience period data
to the successor if all the following conditions are met:
a.
The time between the
predecessor ceasing all operations and ceasing as an active entity and the
effective date of purchase is greater than six months. The predecessor or
successor must prove the date all operations ceased.
b.
There is no family
relationship or other connection between the predecessor and the successor.
4.
BWC will establish
the successor’s appropriate premium rate:
a.
Where one legal
entity, not having coverage in the most recent experience period, wholly
succeeds another legal entity in the operation of a business the successor’s
rate will be based on the predecessor’s experience period data within the most
recent experience period.
b.
Where a legal entity
having established coverage, or having had experience in the most recent
experience period, wholly succeeds one or more legal entities having
established coverage or having had experience in the most recent experience
period and at least one of the entities involved has a merit rating experience,
the successor’s rate will be based on the combined experience period data of
all the involved entities.
c.
A legal entity that
succeeds in the operation of a portion of a business of one or more legal entities
having established coverage or having had experience in the most recent
experience period, the successor’s rate will be based on the portion of the
predecessor’s experience period data acquired by the successor.
5.
BWC will determine
the effective date of the transfer of experience.
a.
When any combination
or transfer of experience is indicated, the effective date of such combination
or transfer will be the beginning date of the following policy year.
b.
If an entity
initiates coverage on the same date it wholly succeeds another entity, or in
cases where the date of succession is January 1 for a public employer taxing
district (PEC), or July 1 for a private employer (PA), the effective date of
the combination or transfer of experience will be the actual date of succession.
6.
BWC will transfer
claims from the predecessor’s policy to the successor’s policy. BWC systems
will identify the successor as the employer of record on the effective date of
the claims transfer.
7.
If an out of state
employer purchases an existing Ohio operation, BWC may use the out of state
experience of the employer as a factor in determining the employer’s experience.
C.
Rights and
obligations.
1.
BWC will transfer
the predecessor’s rights and obligations under the workers’ compensation law to
the successor where the successor wholly succeeds the predecessor in the
operation of the business. BWC will transfer the rights and obligations
regardless of whether the predecessor’s transfer to the successor was voluntary
or through an intermediary bank or receivership, if any of the following
criteria are met:
a.
The successor
expressly or impliedly agrees to assume such obligations.
b.
The succession
transaction amounts to a de facto consolidation or merger.
c.
The successor is
merely a continuation of the predecessor.
d.
The succession
transaction is entered into for the purpose of escaping obligations under the
workers’ compensation law.
2.
BWC will not
transfer the predecessor’s rights and obligations to the successor if the
following three conditions are met:
a.
There is a material
change in ownership;
i.
There must be an
outright sale (no association between seller and buyer).
ii.
In the case of a
continuation in ownership, such as a change in partnership, the owner’s
interest must have been less than 1/3 ownership before the change or less than
1/2 ownership after the change.
iii. If there is a family relationship or
other connection between the predecessor and successor, BWC does not consider
the sale of the entity to be a material change in ownership.
b.
There is a change in
governing classification; and
c.
There is a change in
process and hazard.
i.
There must be a
total change in operations or industrial pursuit, or a totally new way of
performing the work, such as providing the service or handling the material,
that dramatically changes the degree of hazard under the successor. An
evaluation by BWC’s Underwriting Department, a rating inspection by BWC’s Audit
Department, or a consultation with BWC’s Division of Safety & Hygiene may
be required.
ii.
There is the
possibility to meet the “change in governing classification” requirement and
not meet the change in process and hazard. This situation could occur if BWC
applies a new manual classification due to changes implemented by the
successor, but, the successor uses the same processes, machinery, equipment,
and tools as the predecessor. In this situation, the same degree of hazard
exists.
iii. The successor must provide documentation
to support a substantial modification in process and hazard.
3.
In addition to
section IV.C.2, BWC will not transfer the predecessor’s rights and obligations
to the successor if all the following conditions are met:
a.
The time between the
predecessor ceasing all operations and ceasing as an active entity and the
effective date of purchase is greater than six months. The predecessor or
successor must prove the date all operations ceased.
b.
There is no family
relationship or other connection between the predecessor and the successor.
4.
Effective September
1, 2006, BWC will credit the successor with any credits of the predecessor
where the successor wholly succeeds the predecessor.
D.
Estimated annual
premium (EAP), installment payments, and true-up.
1.
EAP for successor.
a.
BWC will prorate the
predecessor’s estimated payroll to determine the amount of payroll to add to
the successor from the date of succession to the end of the current policy year.
b.
BWC will recalculate
the EAP and installment payments for the successor based on the additional
estimated payroll.
c.
If the successor is
a new employer and the date of combination is the same as the effective date of
coverage, BWC will ensure, at a minimum, that the successor’s estimated payroll
is at least the predecessor’s prorated estimated payroll from date of
succession to the end of the current policy year. BWC will use the estimated
payroll on the successor’s U-3 if that estimate is higher.
2.
BWC will void the
predecessor’s installment payments that are due after the date of combination.
3.
True-up.
a.
The predecessor is
required to true-up within thirty (30) days of receiving notice from BWC.
i.
The predecessor must
report payroll from the first day of the policy year through the last date it
had employees.
ii.
BWC will prorate
predecessor’s payroll for the coverage period and increase the EAP by ten
percent (10%) if the predecessor fails to true-up by the due date.
b.
Successor’s true-up
must include payroll from predecessor from the date of combination to the end
of the policy year.
4.
Partial transfers.
a.
BWC will transfer
estimated payroll to the successor based on the portion of predecessor that was
purchased.
b.
BWC will recalculate
the EAP and installment payments for the successor based on the additional
estimated payroll.
c.
True-up is due after
the conclusion of the policy year.
i.
Predecessor must
report payroll for the portion of the business that it owned for the entire
policy year and for the portion of the business it owned up to the date it was
sold to the successor.
ii.
Successor must
report payroll for its existing business for the entire policy year and for the
portion of the business bought from predecessor from the date of purchase.
5.
Successions that
occur after BWC has issued the successor an EAP letter but, before the end of
the current policy year.
a.
Both predecessor and
successor must true-up for the current policy year.
b.
BWC will add
estimated payroll to the successor for the renewal year based on the
predecessor’s reported payroll. BWC will recalculate the EAP and installment
payments for the successor.
E.
Policy combinations
and workers’ compensation coverage transfers.
1.
Where the successor
wholly succeeds the predecessor, BWC will determine the date the predecessor’s
policy is combined into the successor’s policy as follows.
a.
Where the successor
has workers’ compensation coverage prior to the date of succession, BWC will
combine the predecessor’s policy into the successor’s policy effective the date
of succession.
b.
Where the successor
does not have worker’s compensation coverage prior to the date of the
succession, BWC will combine the predecessor’s policy into the successor’s
policy effective:
i.
The date of
succession, if the original effective date of the successor’s policy is equal
to the succession date.
ii.
The original
effective date of the successor’s policy, if the original effective date of the
successor’s policy is later than the succession date.
2.
BWC will use the Application
for Coverage policy to determine the coverage effective date for
a successor’s new policy.
3.
BWC will not grant
retroactive coverage to the successor except as provided in OAC 4123-14-03.
4.
BWC will assign only
one policy to a legal entity. If a legal entity succeeds one or more risks, BWC
will combine policies to ensure the successor is assigned one workers’
compensation policy. BWC may grant an exception to:
a.
A temporary agency.
See the Temporary
Labor Services policy for additional information.
b.
An employer with
multiple locations where there is no interchange of labor between the locations.
5.
BWC will deny
requests by a predecessor to retain its workers’ compensation policy number.
The predecessor must submit a U-3 and the non-refundable application fee to
apply for coverage for its new or future business operation.
F.
BWC determination of
a succession.
1.
BWC will use
multiple criteria and a preponderance of the facts to determine whether a
successor wholly succeeded a predecessor. Criteria BWC will use includes, but
is not limited to:
a.
Business ownership.
b.
Continuity of
business operations.
c.
Real estate, plant,
equipment, material inventories, and other assets or property.
d.
Customer profiles.
e.
Industrial pursuit.
f.
Employee roster.
g.
Business location.
2.
The records BWC will
examine to determine whether a successor wholly succeeded a predecessor
includes, but is not limited to:
a.
Purchase or sales
agreements.
b.
Federal tax and Ohio
Department of Jobs and Family Services (ODJFS) records, including W-2s and
1099s.
c.
Receipts, invoices
or transfer documents relating to real estate, equipment, vehicles, material
inventory, and other assets or property.
d.
List of customers
and supporting invoices.
e.
Accounts receivable
ledgers.
f.
Payroll records.
3.
Where the successor
wholly succeeds the predecessor, BWC has the right to transfer the
predecessor’s EM data and liabilities to the successor without either party’s
signature or approval.
4.
BWC will not use
this policy to address the impacts of alternative rating programs in which an
employer may be participating. The rules for the specific rating plans apply.
G.
Bankruptcy and
receivership.
1.
Bankruptcy:
a.
BWC will issue a new
policy with the status of debtor in possession (DIP) when an employer enters
into bankruptcy and continues to operate.
i.
The experience
period data from the original policy will transfer to the DIP policy to develop
the DIP’s rate. However, the liabilities will remain with the original policy.
ii.
If the employer
emerges from bankruptcy and continues to operate, BWC will update the policy to
remove the DIP status. The employer retains the experience period data.
b.
When an employer
enters into bankruptcy and sells the business, there is no transfer of
experience period data or liabilities to the buyer.
2.
Receivership: When a
receiver is responsible to liquidate the assets of an entity, BWC considers the
receiver a third party intermediary; no liabilities or experience transfers to
the succeeding employer.
H.
Request for information.
1.
Pursuant to
executing the Request for Business Transfer Information (AC-4) a
potential successor may request information from BWC concerning:
a.
The premium rates to
be applied where one employer takes over the occupation or industry of another,
and
b.
The portion of the
account assumed by the successor.
2.
The information
released to the successor and/or its authorized representative will only
include the following:
a.
Employer demographic
information.
b.
Account receivable
balance.
c.
Payroll history.
d.
EM history.
e.
Most recent
quarterly claim cost summary.
f.
If a current audit
is pending.
3.
The information
released by BWC is current as of the date of its release only and does not
reflect any changes, adjustments, or audits that may be in process. BWC cannot
guarantee the accuracy of the information beyond the date of production.
I.
Resolution of
complaints.
1.
An employer that BWC
determines to be a successor may file a complaint.
2.
BWC has identified
certain “extenuating circumstances” that allow BWC to grant the employer’s
request for relief. There must be a direct correlation between the extenuating
circumstance and the employer’s request. The extenuating circumstances are
outlined in section IV.J below.
3.
BWC will investigate
the employer’s complaint.
a.
BWC will ascertain
the reasons the employer is requesting relief.
b.
BWC will request
documentation from the employer, including, but not limited to:
i.
BWC records.
ii.
Application for Ohio
Workers’ Compensation Coverage (U-3).
iii. Notification of Business
Acquisition/Merger or Purchase/Sale (U-118).
iv.
Copy of purchase,
lease, or management agreement.
4.
BWC will approve or
deny the employer’s request for relief.
5.
The following do
not qualify as extenuating circumstances:
a.
Successions accomplished
under a lease agreement.
b.
Successions accomplished
under a “lease-purchase” agreement.
c.
Successions accomplished
through a “management contract” agreement.
d.
Successions accomplished
through a “purchase agreement.”
6.
BWC staff who process
an employer’s complaint must obtain management level sign-off on each
recommendation to approve or deny the employer’s request for relief.
J.
Circumstances that
qualify as extenuating circumstances.
1.
Bankrupt employer.
This circumstance is intended to include all experience combine situations
involving a bankrupt employer.
2.
BWC error. This
circumstance is intended to cover all instances where BWC has made material
errors in transfer. If the error was due to incomplete or inaccurate
information provided by the predecessor or successor, BWC error does not apply.
3.
Employer acquires
equipment through auction to use in its existing business and has acquired
nothing else from the former employer.
4.
Involuntary transfer
through an intermediary bank. This circumstance is intended to cover instances
where the successor acquires its interest in the predecessor’s business by
means of an involuntary transfer through an intermediary bank.
a.
The following two
conditions must be present:
i.
The transfer from
the predecessor must be involuntary.
ii.
The acquisition by
the ultimate transferee/successor must be through an intermediary bank. BWC
may require appropriate documentation to support the involuntary transfer.
b.
In addition to the
above two conditions, for successions that occur on or after July 5, 2010, NONE
of the following criteria can exist:
i.
The successor
expressly or impliedly agreed to assume such obligations.
ii.
The succession
transaction amounts to a de facto consolidation or merger.
iii. The successor is merely a continuation
of the predecessor.
iv.
The succession
transaction was entered into for the purpose of escaping obligations under the
workers’ compensation law.
v.
The transfer was
through an entity other than an intermediary bank.
c.
If one or more of
the above five criteria is met, BWC will transfer the predecessor’s experience,
rights and obligations.
K.
Scenarios.
1.
Successor applies
for coverage on the date of succession.
a.
Employer B, not
having established coverage wholly succeeds Employer A which has established
Ohio workers’ compensation coverage. U-3 and U118 forms returned to BWC
indicate Employer B wholly succeeded Employer A on October 4. Employer B
applied for coverage and paid the application fee on October 4.
b.
BWC action:
Preponderance of the facts show that Employer B wholly succeeded Employer A.
Successor Employer B’s coverage is effective October 4.
i.
Predecessor Employer
A’s existing policy is combined into Successor Employer B’s policy effective
October 4.
ii.
All workers’
compensation rights and obligations of Predecessor Employer A are transferred
to Successor Employer B. Successor Employer B will receive all future
invoice/statements associated with Predecessor A’s policy.
iii. Experience of Predecessor Employer A is
transferred to Successor Employer B effective October 4.
iv.
Correspondence sent
to Predecessor Employer A and Successor Employer B advising of actions taken by
BWC.
v.
Successor Employer B
reports payroll and pays premium under its new workers’ compensation policy.
Employer A is responsible for reporting payroll for the period July 1 through
October 3. Employer B becomes responsible for paying the premium for the July 1
through October 3 period if the premium is not paid by Employer A. Employer B
is responsible for reporting and paying the premium for the October 4 through
June 30 period and subsequent periods.
2.
Successor applies
for coverage after date of succession.
a.
Employer B, not
having established coverage wholly succeeds Employer A which has established
Ohio workers’ compensation coverage. U-3 and U-118 forms returned to BWC indicate
Employer B wholly succeeded Employer A on October 4. Employer B applied for
coverage and paid the application fee on December 1, after the effective date
of the succession.
b.
BWC action:
Preponderance of the facts show that Employer B wholly succeeded Employer A.
i.
Successor Employer
B’s coverage is effective December 1.
ii.
Predecessor Employer
A’s existing policy is combined into Successor Employer B’s policy effective
December 1.
iii. All workers’ compensation rights and
obligations of Predecessor Employer A are transferred to Successor Employer B.
Successor Employer B will receive all future invoice/statements associated with
Predecessor A’s policy.
iv.
Experience of
Predecessor Employer A is transferred to Successor Employer B effective the
following July 1 (first day of the policy year).
v.
Correspondence sent
to Predecessor Employer A and Successor Employer B advising of actions taken by
BWC.
vi.
Successor Employer B
reports payroll and pays premium under its new workers’ compensation policy.
Employer A is responsible for reporting payroll for the period July 1 through
October 3. Employer B becomes responsible for paying premium for the July 1
through October 3 period if the premium is not paid by Employer A. BWC will
charge Employer B a no coverage penalty for the period October 4 through
November 30. Employer B is responsible for paying the premium for the December
1 through June 30 period and subsequent periods.
3.
Business transaction
effective first day of a policy year.
a.
Employer B having
established coverage wholly succeeds Employer A which has established Ohio
workers’ compensation coverage. U-118 form returned to BWC indicates Employer B
wholly succeeded Employer A on July 1 (effective first day of a policy year).
b.
BWC action:
Preponderance of the facts show that Employer B wholly succeeds Employer A.
i.
Predecessor Employer
A’s existing policy is combined into Successor Employer B’s existing policy
effective July 1.
ii.
All workers’
compensation rights and obligations of Predecessor Employer A are transferred
to Successor Employer B. Successor Employer B will receive all future
invoice/statements associated with Predecessor A’s policy.
iii. Correspondence sent to Predecessor
Employer A and Successor Employer B advising of actions taken by BWC.
iv.
Successor Employer B
reports payroll and pays premium under its existing workers’ compensation
policy. Employer B is responsible for reporting payroll and paying the premium
for the July 1 through June 30 period and subsequent periods.
4.
Business transaction
between employers with established coverage.
a.
Employer B, having
established coverage wholly succeeds Employer A which has established Ohio
workers’ compensation coverage. U-118 form returned to BWC indicates Employer B
wholly succeeded Employer A on October 1.
b.
BWC action: Preponderance
of the facts show that Employer B wholly succeeds Employer A.
i.
Predecessor Employer
A’s existing policy is combined into Successor Employer B’s existing policy
effective October 1.
ii.
All workers’
compensation rights and obligations of Predecessor Employer A are transferred
to Successor Employer B. Successor Employer B will receive all future
invoice/statements associated with Predecessor A’s policy.
iii. Experience of Predecessor Employer A is
transferred to Successor Employer B effective the following July 1 (first day
of the policy year).
iv.
Correspondence sent
to Predecessor Employer A and Successor Employer B advising of actions taken by
BWC.
v.
Successor Employer B
reports payroll and pays premium under its existing workers’ compensation
policy. Employer A is responsible for reporting payroll for the period July 1
through September 30. Employer B becomes responsible for paying the premium for
the July 1 through September 30 period if the premium is not paid by Employer
A. Employer B is responsible for reporting and paying the premium for the
October 1 through June 30 period and subsequent periods.
5.
Partial transfer.
a.
Employer B not
having established Ohio workers’ compensation coverage takes over a portion of
the operations of Employer A which has established Ohio workers’ compensation
coverage. U-3 and U-118 forms returned to BWC indicate Employer B took over a
portion of the operations of Employer A on April 1. Employer B applied for
coverage and paid the application fee on April 1.
b.
BWC action:
Preponderance of the facts show that Employer B took over a portion of the
operations of Employer A on April 1.
i.
Successor Employer
B’s coverage is effective April 1.
ii.
Predecessor Employer
A retains its existing BWC policy number.
iii. Partial Transfer Audit assignment
generated to determine what portion of the payroll and claims transfer to
Successor Employer B for premium rate making purposes.
iv.
Partial transfer
adjustment completed upon submission of audit findings.
v.
Successor Employer B
reports payroll and pays premium under its new workers’ compensation policy.
Employer A is responsible for reporting payroll and paying premium for the July
1 through March 31 period. Successor Employer B is responsible for reporting
and paying the premium for the April 1 through June 30 period for the portion
of Employer A’s business operation Employer B took over on April 1.
vi.
Correspondence sent
to Predecessor Employer A and Successor Employer B advising of actions taken by
BWC.
6.
Multiple
successions.
a.
Employer A having
established Ohio workers’ compensation coverage was combined into Employer B
having established Ohio workers’ compensation coverage effective June 10, 2008.
Employer B sells entire business operation to Employer C not having established
coverage. U-3 and U-118 forms returned to BWC indicate 100% of business
operation purchased by Employer C on March 8 of this year. Employer C applied
for coverage and paid the application fee on February 15 of this year.
b.
BWC action:
Preponderance of the facts concludes that Employer C wholly succeeds Employer B.
i.
Successor Employer
C’s coverage is effective February 15.
ii.
Predecessor Employer
B’s existing policy is combined into Successor Employer C’s new policy
effective March 8.
iii. All workers’ compensation related rights
and obligations of Predecessor Employers A and B are transferred to Successor
Employer C. Successor Employer C will receive all future invoice/statements
associated with Predecessor A and B’s policy.
iv.
Experience of
Predecessor Employer B is transferred to Successor Employer C effective the following
July 1. (First day of the following policy year).
v.
Correspondence sent
to Employers B and C advising of actions taken by BWC.
vi.
Successor Employer C
reports payroll and pays premium under its new workers’ compensation policy.
(Employer B is responsible for reporting payroll for the period July 1 through
March 7. Employer C becomes responsible for paying the premium for the July 1
through March 7 period if the premium is not paid by Employer B. Employer C is
responsible for reporting the payroll and paying the premium for the March 8
through June 30 period and subsequent periods).
7.
Employer applies for
coverage without submitting Notification of Business Acquisition/Merger or
Purchase/Sale (U-118).
a.
Employer A having
established Ohio workers’ compensation coverage sells entire business operation
to Employer B not having established Ohio workers’ compensation coverage. No
U-118 form sent to BWC. Employer B submits U-3 to BWC indicating startup date
of August 17. BWC received information indicating Employer B might have
succeeded in the business operation of Employer A.
b.
BWC action:
i.
New application for
coverage of Successor Employer B reviewed by BWC. U-118 form is forwarded to
Successor Employer B requesting information regarding business transaction.
ii.
Application for
Successor Employer B is held in pending status until all required information
is received or supervisor determines it is appropriate to finalize the
application and proceed with the combine/transfer.