Workers’ comp commission to hold hearing on 10-day cancellations

Workers’ comp commission to hold hearing on 10-day cancellations

By Michael Whitely, WorkCompCentral

Published September 27, 2010

The South Carolina Workers’ Compensation Commission (WCC) will hold a hearing Nov. 29 to consider a regulatory change allowing workers’ compensation carriers to cancel policies for nonpayment 10 days after notification to the National Council on Compensation Insurance (NCCI).

WCC Executive Director Gary Cannon said Friday that Regulation 66-405-CL currently prohibits cancellation of workers’ compensation policies less than 30 days after notification to NCCI that a premium payment was missed. He said laws governing the South Carolina Insurance Department allow cancellation 10 days after notification of nonpayment.

The Property and Casualty Insurance Association of America (PCI) requested the change at a Sept. 28 meeting of the commission.

Cannon said the commission is required to hold a public hearing on the request.

If approved, the change would be submitted to the South Carolina Legislature, which has 120 legislative days to deny it, approve it or allow it become official without legislative action.

Cannon said carriers argue about the 30-day notice requirement conflicts with state insurance law and differs from regulations in other states.

He said the commission will be notifying stakeholders of the hearing.

“The commission is very interested in getting all of the interested parties’ input on this,” Cannon said.

Frank Knapp, president and chief executive officer of the South Carolina Small Business Chamber of Commerce, said the group will oppose the change.

“This appears to be an effort by the industry to get rid of accounts they don’t really want or to write the business at a higher rate,” Knapp said.

The public hearing is scheduled for 10 a.m. (EST) and will be held at the WCC offices at 1333 Main St, Suite 500, in Columbia, S.C.