With the passage of House Bill (HB) 207 in 2016, if an employer can establish that a claim from their employee is a result of a non-at-fault motor vehicle accident involving a third party, BWC may exclude the cost of the claim from the employer’s experience.
The law requires that either the third party at-fault driver have active insurance coverage or the employer must have active uninsured motorist’s insurance coverage to apply for the claim cost exemption.
This change in legislation may impact an employer’s experience modification in premium development and to the experience used in premium development for an employer participating in a retrospective rating plan.
This provision of HB 207 became effective for accidents occurring on or after July 1, 2017.
For more information, see the Non-At-Fault Motor Vehicle Accident Claims - Surplus Fund Charge fact sheet.