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This page features news, information, and tips you can use to make intelligent insurance and risk management decisions. The insurance professionals at Financial Risk Solutions monitor industry publications and mainstream press vigilantly. We are dedicated to keeping you informed of the many issues that might affect your insurance coverages.
Please read our online newsletters for the latest developments in your particular areas of interest.
WORKERS’ COMPENSATION
FAQS
You will provide a copy to the person/company that you will be performing services for, and you should keep a copy for your records. You do not send a copy to the Oklahoma Insurance Department.
1. Is there a charge for using the affidavit and fact sheet?
No, there is no charge connected with the use of the affidavit and fact sheet documents. The only expense involved will be the cost to have the documents notarized.
2. Who do I contact regarding approval of Certified Workplace Medical Plans to provide managed care medical treatment?
You must contact the Oklahoma Department of Health at 1000 N.E. 10th, Oklahoma City, OK
73104 or by phone 4a5-271-6868 or http://www.health.state.ok.us.
3. Who do I contact regarding information on workers’ compensation fraud?
You must contact the Office of Attorney General, State Capitol Building or by phone 405-522-3403 or Oklahoma WATS 877-800 -8764 or http : I lwww. oag. state. ok.us.
No – Individuals who are not employees under the Workers’ Compensation Act (e.g. sole proprietors, partnerships, stockholder employees owning l0 percent or more of stock in the corporation, and limited liability company owners holding 10 percent or more of the capital in the LLC) are specifically excluded from the Act. However, those individuals may choose to obtain coverage for themselves.
4. can an employee waive his or her rights to be covered by workers’ comp?
No – An employee is prohibited from waiving his or her rights to be covered by workers’ compensation insurance. Any waiver agreement is invalid. Further, any employer who deducts the cost of workers’ compensation insurance from an employee’s wages is in violation of the Act and could face misdemeanor charges.
5. Are employers fined for failing to provide workers’ comp. coverage?
Yes – An employer cited for violating the Workers’ Compensation Act is liable for a maximum civil penalty of $250 per employee for a first offense and a maximum civil penalty of $1,000 per employee for a second or subsequent violation.
6. can employers just obtain an accident policy for their employees instead?
No – An employer must provide a valid workers’ compensation insurance policy or an approved workers’ compensation equivalent policy issued by an insurance carrier authorized by the Oklahoma Insurance Commissioner and the State Board for Property and Casualty Rates.
7. Are truck drivers who drive a leased truck considered an employee?
Not Necessarily – The definition of an employee does not include a truck driver (owner/operator) if the driver owns the truck being driven or if the individual drives a leased truck, as long as the business contracting with the truck driver is not the lessor of the truck.
8. What should you do if you believe an employer doesn’t have coverage?
If you or someone you know suspects an employer is failing to provide workers’ compensation coverage, please call the Workers’ Compensation Enforcement Division at the Oklahoma Department of Labor in Oklahoma City at (405) 528-1500 or toll-free statewide at (SS8) 269-5353. You will be asked to provide the name and address of the employer suspected of not complying with the Act. You may remain anonymous.
9. Are employers required to post an Oklahoma Workers’ Comp Act notice?
Yes – State law requires each employer to post a notice (Form lA) advising employees that they are covered by the Workers’ Compensation Act and that workers’ compensation counselor services are available at the Oklahoma Workers’ Compensation Court. The Form 1A notice can be obtained from the Court by calling (405) 522-8600 in Oklahoma City or toll-free statewide at (800) s22-8210.
10. How can I tell if my sub contractor really is defined as an employee?
Three Criteria Should be Considered
1. The worker is free from the presumed employer’s control and direction in performing the service. This standard is similar to those of the IRS and FLSA. Activities must be carried out with autonomy and independence. Contractors provide their own tools and materials and use their own approach without instruction or supervision. They determine their own hours.
3. The worker must be customarily engaged in an independent trade, occupation, profession or business of the same type. The contractor must be in an independent business enterprise, working for others, truly working on his own.
2.The service provided by the worker must be outside the employer’s usual course of business. In other words, if the “independent” contractor is in the same trade as the employer’s own workers, there can be no determination of independence! Hence, overflow rti*r are not independent unless you can document that they carry their own insurance.
Workers’ Compensation Enforcement Questions Answered
1. Are all employers required to obtain workers’ compensation insurance?
Yes – The law requires employers to provide workers’compensation insurance for all their employees, even if the employer only has one part-time employee. However, an exemption exists for an employer with five or fewer total employees, all of whom are related to the employer either by blood or marriage.
2. How are workers’ compensation insurance premiums calculated?
Premiums for workers’ compensation insurance are based on factors such as the amount of wages paid by the employer and the classification of the company’s employees (e.g. secretaries, mechanics, truck drivers, etc.). Every business will develop an Experience Modification Factor which will adjust your premium in relation to your claims experience compared to your industry average. We excel at managing this for you in order to save as much premium as possible.
3. Must business owners obtain workers’ comp. coverage for themselves?
exercise control over most of the details of the work? Do you create plans or specifications for the job? Do you set your own work hours?
4. You are engaged in a distinct occupation or business for others. For example: Do you work for companies or individuals other than the Contractor? Do you work for competitors of the Contractor? Does your business have a logo or uniform?
5. Your job is the kind of occupation where the work is usually performed by a specialist without supervision, and not under the direction of the contractor. For example: Is your work supervised by the Contractor?
6. Your occupation requires special skills, license, education or training.
7. The contractor does not supply the things needed to perform your job such as the tools and the place of work. For example: Do you supply any of the materials or tools for the work? Do you operate a vehicle owned by the contractor? Was the work performed at your business or the contractor’s business location or job site? Do you wear a uniform supplied by the contractor?
8. The length of the lob and how long you have worked for the Contractor does not show that you are really an employee. For example: Is this a one-time job, or will you be doing this for the contractor regularly?
9. You are paid as a separate contractor, not as an employee. For example: Do you invoice the Contractor for your services? Are you paid by the job? Do you file a federal income tax return for your business? Do you expect to receive an IRS Form 1099 from the Contractor? Does the Contractor pay your expenses?
10. Your work is not the regular business of the employer. For example: Is your work customarily done in the Contractor’s line of business or as part of the Contractor’s daily work? Have you ever been an employee of the Contractor? Do you work with other people hired by the Contractor on the work you perform?
11. You do not consider yourself an employee of the contactor. For example: Will the
Contractor withhold taxes or monies from your placement? Have you ever been an employee of the Contractor? Have you or your employees ever filed an insurance claim against the Contractor?
12. You do not have the right to terminate the relationship without liability. For example: If you quit before the job is finished, is there a penalty?
Based upon these factors, do you believe that you are an independent contractor? If so, please click onto link below to print off a copy of the document you need to complete and give to your general contractor.
By law, all states offer UM and UIM policies, including no-fault states. ln fact, some states require all motor is* to carry this coverage in order to gain protection from inadequate insurance coverage of other drivers.
INDEPENDENT CONTRACTOR FACT SHEET
An independent contractor is defined by law as one who engages to perform certain services for another, according to his own manner, method, free from control and direction of his contractor in all matters connected with the performance of the service, except as to the result or product of the work.
Below are statements to help you decide if you are an independent contractor. No one statement is controlling, and your status is based on all the facts in your situation. If a statement describes your situation, then check the box. You are not an independent contractor if at least six (6) of the statements below do not describe your business.
l. The nature of the contract between you and the contractor shows you are independent from the contractor. For example: Is there a written contract where you agree that you are are independent contractor? Are you a corporation or limited liability company? Do you maintain commercial general liability insurance or other business insurance?
2.The contractor exercises very little control over your work. For example: By the agreement,can the contractor exercise control on the details of the work or your independence?
Where can I order forms such as Employer’s First Notice of Injury, Notice and Instruction to Employers and Employees (required to be posted in conspicuous places)? Who can answer questions regarding rights and benefits such as when payment is due after being injured on the job, disability and death benefits? If I have a question about fee schedules, utilization review or self-insured groups who do I contact?
For any of the above contact the Workers’ Compensation Court, 1815 N. Stiles, Oklahoma City, OK 73105. The phone number is 405-522-8600 or Oklahoma WATS 800-522-8210 and the website is
http://www.owcc.state.ok.us/.
Where can I get a Certificate of Non-Coverage if I am an individual exempt from the definition of employee under Section 3 of Title 85?
Senate Bill lX repealed the Sections of Title 40 which created the Certificate of Non-Coverage Form. This form was issued by the Oklahoma Department of Labor for those individuals who were not required to be covered under a workers’ compensation insurance policy or other plan for the payment of workers’ compensation. In response to the passage of SB1X and as a result of the joint effort of Oklahoma legislators, regulators and insurance industry, a new Affidavit and Fact Sheet were developed. See below at the RED paragraph and click on link to the form.
To whom do I provide copies of the completed affidavit and fact sheet?
If I am an Executive Officer, Partner, or Sole Proprietor and wish to carry workers’ compensation insurance, what would be the payroll determination used in the computation of my workers’ compensation premium?
Maximum payroll applicable for the Executive Officers” would be $2,300.00 Minimum payroll applicable for “Executive Officers” would be $300.00 Premium Determination for Partners and Sole Proprietors would be $30,000.00
- Auto Insurance
- Homeowners Insurance
- Renters Insurance
- Business Insurance
- Student/Recent Graduate Insurance
Why do I need to buy insurance?
- Protects your assets against attachment as a result of a court award.
- Provides for cost of defense when you are sued.
- Allows you to purchase such high value items as a car or a home by insuring the collateral on behalf of the financial institution that lent you the money.
- Provides financial security for your family in the event of your death.
- Provides for the health care of you and your family through systematic payments.
- Allows you to save for retirement while defending interest payments to a time when your income is lower, thus reducing your tax payments.
- Allows you to remain financially solvent when you’re ill and can’t work.
What factors affect the insurance premiums I pay?
- Claims activity including such costs as medical cars, auto body repair, construction, legal defense, jury awards, claims adjustment, and insurance fraud.
- Overhead including rent, utilities, employee salaries and benefits, office supplies, equipment, and furniture.
AUTO INSURANCE
Jackson Barton, Oklahoma City Insurance, car insurance, auto insurance,OKC insurance quote,How does where I live affect my premium?
Do all states require some kind of Liability insurance?
Where you keep your car directly affects your chances of having an accident or becoming a victim of theft or vandalism. The likelihood of encountering these problems increases in larger, more densely populated cities, while such incidents remain relatively low in rural areas. Additionally, the time and efficiency of police response and law enforcement, local road and traffic conditions, and the quality of local medical services can affect regional insurance rates.
Some insurers even factor in the litigation rates in a given area (how many lawsuits are filed, go to trial, out of court settlements, and their amounts). No’ Although not every state requires Auto insurance, some have “financial responsibility,, laws mandating all drivers to be able to pay for any damage or injury they might cause. However, Liability insurance is still the best way for you to meet your state’s financial responsibility requirements.
Usually, insurers that refuse to cover a claim have astrong legal reason for doing so – even if you disagree. First, contact us if you feel you’re being treated unfairly. Your agent is your strongest advocate in insurance matters. But if it’s a legal problem, you might have to hire a lawyer.
Who decides on the type of insurance, the mortgage company or me?
The mortgage company collects a set amount from you each month in order to protect their investment. This money is put in escrow and covers your insurance and taxes. However, the policy is still yours and you might select the insurance you feel offers the best coverage at the best rates.
What exactly does a Homeowners policy cover?
‘Exact” coverage is impossible to define because there are different policies and about 900 insurance companies writing Property/Casualty business in the United States. However, 80% of Homeowners policies are based on a standard form. All Homeowners policies cover two important areas: Property and Liability.
Property insurance covers your structures and possessions. Personal Liability, as its name implies, means you’re legally obligated to pay money to another person for actions caused by you, your family, or your property. That liability extends to medical payments to others for injuries caused by you or your family.
Are floods, earthquakes, and other natural disasters covered?
Most catastrophes are covered. Flood and earthquake damage, however, are not covered by a
standard policy and both perils are more common than many people rcalize. We can advise you
on such normally excluded conditions as floods and earthquakes.
Are there exclusions I should know about?
Exclusions listed and defined in yoru policy might include neglect, intentional loss,’,earth movement,” general power failure, and even damage caused by war. If you fail to take care of your property (e.g., a leaky roof), you might not be covered. Obviously, if you intend to lose an object or damage your property, there’s no coverage.
One other exclusion that can be costly is the Ordinance or Law exclusion. Building codes established by governmental bodies that drive up the cost of rebuilding or repairing after a loss occurs might not be covered by your insurance policy. Thus, if you discover when replacing damaged property that current law demands higher grade or more expensive materials than those you’re replacing, the new materials might not be covered fully.
How expensive is renters insurance?
Renters insurance is typically available for as little as $250 a year.
Does my landlord’s insurance protect me?
Generally, no. The property owner’s insurance covers the building itself and seldom a tenant’s possessions or liability. Clarify this with yow landlord before signing a lease.
I’m just getting my business started. Do I need insurance immediately?
Yes. Your chance of suffering a loss begins with the first day of business. If you suffer a loss and have no insurance or have improper or insufficient coverage, your insurance agent can do little, if anything, to help you.
Also, many states and local jurisdictions require businesses to have insurance to begin operating. And if you rent space for your business, your landlord probably requires you to obtain uaequut” insurance.
I don’t have any major business assets. Why do I need insurance?
Every business has some property. When you think about it, your business is your property. Just like your home and your car, your business needs to be protected from loss, damage, or liability. In addition, your business is your source of income, so you need protection from the potential loss of that income.
Does insurance coverage vary for different businesses?
It can. Many small businesses opt for package policies that cover the major Property and Liability exposures as well as for a loss of income. A common package policy used by many small businesses is called the Business Owners policy (BOP).
Generally, BOPs provide more complete coverage at a lower price than separate policies for each type of insurance needed. We can help you decide which policy or policies are right for your business’ You can also purchase additional coverage for perils or conditions otherwise excluded (e.g., flood protection) as endorsements to a standard policy or as a separate, second policy called a Difference in Conditions (DIC) policy. We can advise you of the best policy (or policies) to protect you and your business.
STUDENT/RECENT GRADUATE INSURANCE
I’m a college student. Am I still covered by my parents’ policies?
It depends on the policy and its terms. For example, most Health insurance policies cover insureds’ children up to age 18, or up to 22 if the child continues as a full-time student. If you’re over l8 and not a fuIl-time student, you’ll need your own Health insurance policy.
What kinds of risks do college students face?
College students face many new risks as they head off to school: theft of personal property, auto
accidents due to driving long distances, and risks related to attending and giving parties.
How do I keep my insurance company from canceling my policy?
Besides maintaining a clean driving record, consider investing in special safety and security features for your car. If you’ve been in an accident, consider taking a defensive driving course.
What happens when I loan my car to someone? Is that person covered by my policy? Am I still covered?
Yes. Liability and coverage for Physical Damage (i.e. Comprehensive and Collision) always follow your car. Plus, if the driver of your car is insured, his/her policy will also be available to cover the cost of damages and injuries.
The same rules apply when you borrow someone else’s vehicle; your own insurance follows you no matter whose car you’re driving. But the vehicle owner’s policy is the key coverage in the event of an accident.
Am I covered for natural disasters or “Acts of God”?
Comprehensive insurance, which covers you for fire and theft, generally covers you against damage by flood, earthquake, hail, and other natural perils, except when your car is overturned (which is technically considered a collision). If you have specific concerns about the safety of your vehicle in natural disasters, contact us for information on catastrophic coverage.
How can I challenge my insurers if they refuse to cover a claim?
How extensive are these risks?
College and university campuses aren’t immune to property crime. A 1995 FBI study reported that there were more than 100,000 property crimes on college nationwide, including burglary, theft, motor vehicle theft, and arson. Thieves took an average of $1,251 of property per offense that same year.
At least one in 10 college students revealed that they had caused an auto accident in the last two years. One in four had a speeding ticket or other moving violation. These and other offenses contribute to higher Auto insurance premiums for students.
