What is the definition of statutory limits on a wc policy?

by cliffking » Tue Aug 18, 2009 09:18 pm

A workers comp policy typically states in the limits section: "Statutory Limits." What does that mean?

Thank you.

Total Comments: 8

Posted: Wed Aug 19, 2009 09:26 am Post Subject:

Hi, you've to understand something quite clearly over here- WC is governed by the state legislation. The WC benefits may vary from one state to another. If you sustain an injury at your workplace, then you may be entitled to receive the WC benefits.

But such benefits are subject to statutory limits (limitations set by the state legislation) which may again vary from state to state. Roddick

Posted: Thu Oct 15, 2009 06:32 pm Post Subject: Certificate of Insurance showing Statutory Limits on WC?

In Texas, there is no governing statute defining work comp limits as it is not required in the state. So how should one address the requesting entity when they require that the box on the certificate "Statutory Limits" be checked. Technically the term "statutory limits" is undefined in Texas, so by checking this box, what is or is not being accomplished?

Posted: Tue Nov 02, 2010 10:03 pm Post Subject: wc statutory limits for California

Where do I find out what the required coverage is for wc insurance for California?

Posted: Wed Nov 03, 2010 01:11 am Post Subject:

The CA Dept of Industrial Relations . . . http://www.dir.ca.gov/dwc/dwc_home_page.htm

The required coverage is: If you have one employee, you must provide the WC insurance. Claims are specified under state law: Medical Benefits without time or dollar limit, 2/3 weekly wage up to a defined maximum weekly benefit (a bit over $900 max in 2010), death and survivors' benefits based on the employee's wage base, and rehabilitation benefit voucher for job retraining (voucher amount based on wage base).

California has "open competition" for WC insurance, and there are about 1000-1100 insurers admitted in CA to transact WC. You can also apply with State Compensation Insurance Fund ("State Fund"). Your rate is based on occupational risk class and is assessed as $$ per $100 of gross payroll.

Failure to provide the required insurance = WC insurance fraud. Underreporting payroll to reduce WC premiums = WC premium fraud. Don't make either mistake. It is also unlawful to obtain WC insurance in CA from a NONADMITTED insurer.

When you get a policy, be sure to call the insurance company to verify your coverage. There have been at least half a dozen arrests in CA in 2009-10 of persons who have "sold" WC policies, taken money, given "binders" -- and pocketed the money, leaving the employers uninsured. The employer is still at fault for not having the insurance. You can read the press releases on the CA Dept of Insurance website: www.insurance.ca.gov

Posted: Wed Nov 03, 2010 10:59 am Post Subject:

Hi
Workers compensation Insurance policy that covers medical and rehabilitation costs and lost wages for employees injured at work.Almost every business that has employees has to handle the problem of worker's compensation.They essentially require employers to purchase an insurance policy to handle their statutory obligations to workers who are injured or made ill due to a work place exposure.Wheather your business is small or large,handling the expense and effort of meeting those statutory obligations is an ever present challenge.

Auto Insurance

Posted: Thu Nov 04, 2010 01:13 am Post Subject:

Statutory limits is the required level of coverage that must be offered.

I find it kind of funnythat this post was placed here in auto insurance, since WC typically falls under Property and Casaulty insurance and not Life, Accident, Health. I bet the OP had no idea how seeminly appropriate it was to post this here.

Posted: Thu Nov 04, 2010 05:37 am Post Subject:

I find it kind of funnythat this post was placed here in auto insurance



Not everyone discovers the list of forums in the drop down menu their first attempt. Since auto is at the top of the list, it gets the most posts -- appropriate for the forum or not.

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