OhioBWC - Basics: Coverage Status
Throughout an employer’s relationship with BWC, the account record maintained will
reflect a particular coverage status based on the activity (or lack of activity)
in the employer’s policy account. When coverage is initialized the coverage status
will be “active”. If an employer’s payment is not received timely the status of the
account will become “lapsed”. If the employer sends the payment and the payroll report
in after the due
date, the coverage status will become “reinstated” effective the date the payment was
Below is a list that defines each of the possible coverage statuses and a brief
explanation of each one.
Employers with questions or needing more information regarding coverage status
should contact the employer contact center at 1-800-OHIOBWC, and listen to the
Active - Employer has maintained continuous, uninterrupted coverage
from the policy’s original effective date of coverage.
Bankrupt Cancel - When the BWC Law Department receives notice of
a bankruptcy filing, the policy is placed into a “bankrupt canceled” status,
utilizing the bankruptcy filing date as the cancellation date.
Bankrupt Combine - If a Debtor in Possession (DIP) policy exists, the bankrupt policy
is combined into the DIP policy for rate making purposes. The policy reflects a bankrupt
combine coverage status once the two polices are combined.
Cancel Effective Date - BWC cancels the policy on the date the policy became
effective for several possible reasons i.e., a duplicate policy exists; employer no
longer needs coverage; or employer decides to transfer coverage to another policy
he or she purchased. Coverage, in effect, never existed under this policy.
Cancel Pending Final Review - When the cancellation request is received
and the final payroll report has not been processed, the coverage status
is updated to notify BWC that a cancellation request was received.
This coverage status is used until the final payroll is processed.
BWC does not refund the premium security deposit until we process the final payroll
report and premium payment. Once we process the final payroll report
we update the coverage status to Final Cancel.
Combined - BWC has transferred a workers' compensation policy to a successor
The successor becomes liable for the experience rating, and any and all
existing and future liabilities or credits of the predecessor.
Debtor in Possession - If an employer continues to operate after
filing for bankruptcy, BWC establishes a Debtor in Possession policy,
effective the day after the bankruptcy filing. When the bankruptcy plan
is confirmed, or the bankruptcy case is dismissed, discharged or closed,
the DIP coverage status is changed to Active.
Final Cancel - BWC cancels workers’ compensation coverage after
receiving a request from the employer. BWC changes the coverage status
to Final Cancel once the outstanding payroll report has been processed.
BWC applies the premium security deposit to any outstanding debits
and refunds any remaining credit balance.
Lapsed - Employer no longer has workers' compensation coverage due
to non-payment of premium. Coverage lapses the day after the payroll
reporting due date.
BWC charges the employer dollar for dollar any claims costs incurred
while the employer has a lapsed coverage status. Additionally, BWC assesses
the employer penalties. For BWC to reinstate coverage after a lapse, the
employer must file missing payroll report(s) and pay the premium and penalties owed.
Reinstated - BWC will reinstate an employer's coverage after a lapse period on the date we receive any missing payroll report(s) and premium due.
Total Experience Only Transfer - For all successions taking place
prior to Sept. 1, 2006, the policy is placed in this status
when one policyholder takes over the entire Ohio operations from another
policyholder and does not wish to retain the predecessor's policy number.
The experience of the predecessor is merged into that of the successor.