Acord Workers Compensation Application

Should Workers Compensation insurance companies be allowed to ask on their application whether employers have any employees over 60 or any employees with physical disabilities? To my knowledge every workers  compensation insurance company ask these questions except State Fund.

The application goes on to  say

“Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance containing any material false information or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects that person to criminal and civil penalties.”

The only purpose I can see to ask these questions is that answers saying  an employer has employees over 60 or with disabilities  can effect a workers  compensation insurance companies underwriting and pricing of  the employers  workers compensation insurance.

What makes this more interesting is that I think an employer cannot ask these question of an employee.  I do understand that an employer will have information on an employee’s age but should they be forced to divulge that  to the insurance company?

Small Business California is looking to introduce a bill requiring insurance companies to not require the answer to these two questions. To State Funds credit that is what they have done and  they have told me the questions are not necessary for underwriting

Interestingly  enough we are getting resistance from some insurance companies

I don’t know how many of you have signed an Acord Workers Compensation application where you have answered no to these question. It is quite possible you have not signed the an application but your broker has and probably  answered no. Has your broker asked you these questions?

What do you think?

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
415-680-2188