I. Policy Purpose
Insurance
agents play a role in helping employers apply for workers’ compensation
coverage outside Ohio through the Other States Coverage Program (“OSC Program”).
To compensate for this service, insurance agents will be paid an application
services fee for each policy he or she places in BWC’s OSC Program. The
application fee is in lieu of a commission.
II. Applicability
This
policy applies to the BWC Other States Coverage Unit, and insurance agents who
assist employers with obtaining an OSC policy.
III. Policy
A.
An insurance agent
who assists an employer with completing the ACORD 130 and applying for OSC, is
eligible to receive an application services fee for each policy issued in BWC’s
OSC Program.
B.
The application
services fee will be paid on each new business policy issued and for any
renewed policy.
C.
To receive the
application services fee, an insurance agent must be involved in the
application or renewal process.
D.
The amount of the
application services fee will be tiered based on the initial premium.
1.
The tiered payment
amounts are as follows:
|
Tier
|
Premium Amount
|
|
$50
|
<$2,000
|
|
$100
|
$2,000 to $4,999
|
|
$250
|
$5,000 to $9,999
|
|
$500
|
$10,000 to $19,999
|
|
$1,000
|
$20,000 to $49,999
|
|
$2,500
|
$50,000 to $99,999
|
|
$5,000
|
>=$100,000
|
2.
The initial premium
amount will be the written premium at policy issuance including any taxes, fees
or assessments.
3.
The application
services fee will not be adjusted for policy endorsements, or at audit.
E.
After the policy is
issued, an insurance agent will receive compensation once BWC receives a
non-resident license in the state(s) coverage is being written, proof of errors
and omissions coverage, and an IRS W-9 form.
1.
If the insurance agent
does not participate in the application or renewal process, the OSC unit will
update the Agent Not Eligible for Application Services Fee checkbox in SharePoint.
2.
If the insurance agent
does assist with the application or renewal process, the OSC unit will review
the Application Services Fees Access Database to determine what information is
already on file and what documentation is still needed to process the
application services fee.
3.
The OSC unit will
send an email to each insurance agent requesting missing documentation.
4.
Insurance agents
should submit documents directly to BWC – bwcotherstatescoverage@bwc.state.oh.us or Kendra.depaul@bwc.state.oh.us.
5.
The OSC unit will
review the account to ensure documentation is submitted.
a.
If documentation is
not received, OSC staff will update SharePoint as Application Services Fee Waived.
b.
An insurance agent
may also waive the fee if they are not licensed in an individual state or do
not want to submit documentation.
6.
Once the documents
are received, OSC staff will work with United States Insurance Services (USIS)
to provide payment.
a.
USIS will pay an insurance
agent directly as a sub-agent.
b.
BWC will be
responsible for submitting insurance agent information to USIS and disbursing
checks to eligible insurance agents.
c.
Payments will be
processed quarterly.