760-201-0923   Fax 760-537-5595
1365 W Vista Way Suite 200 Vista, CA 92083

Pay Attention: New Workers Comp Officer Exclusion For 2017

In our prior post we discussed the coming changes to the officer exclusion for 2017 and just this past week we started seeing carriers begin to send notices to clients regarding officer exclusions.

Here is a sample of a letter that went out to a Travelers client and gives a good idea of what most carriers will probably be sending out to clients.


Below is the overview that we detailed a week or so ago:

Based on the scenarios that are coming we see significant disruption in the Work Comp marketplace for businesses, especially small businesses.

If you are not aware of the 2017 changes you need to get up to speed on the new “percentage of ownership” changes and how that impacts owner/officer exclusions.  You need to understand the new xMod formula and how frequency will be the driver of the mod calculation. There are some interesting changes that we learned about today that will take effect Jan 1, 2017.  Make sure you are educating yourself so you can advise your prospects and clients in a knowledgeable manner.  There is a review being done by the DOI and industry lobby groups to hopefully clean up the language of the AB 2883 bill that is changing the owner/officer exclusion.  The intent of the bill was to impact business written after Jan 1st, 2017.  However, the language in the bill was not drafted this way and leaves all Work Comp policies exposed which was not intended.  So industry groups, carriers, and the DOI are scrambling to figure out what to do.  In the near future we hope the carriers will start to give guidance and information about how premium audits will be handled, etc.

Here are some resources for your education:

IIABCAL Legislative Update October 14th 2016

AB 2883 Creates Problems For Agents With Large Workers’ Comp Books

Insurance Journal – Excluded Officer article

Sample Officer/Owner Waiver Form

Experience Rating Plan Changes in 2017

WCIRB Webinar: The Impact of the 2017 Variable Split Plan


Share with friends