69O-189.011. Cancellation - Workers' Compensation Insurance

A worker’ compensation insurer is required to give thirty days notice of cancellation except when cancellation is for the following reasons:

(1) The policy has been rewritten by the same company, with the same effective date; or

(2) Prior to the effective date of the policy, the employer had sold his business or otherwise was out of business and thereafter had no employees; or

(3) The Division of Worker’ Compensation, Department of Financial Services (hereinafter referred to as the “Division”) and the employer were given such notice of termination prior to the effective date of the policy.

(4) When the employer sells his business or otherwise goes out of business during the effective period of the policy and thereafter has no person in his employment covered by the provisions of such policy, same may be terminated as of the date the employer ceased having any person in his employment by filing such notice of termination with the “Division” stating therein the reason for termination, and serving a copy thereof upon the employer in person or by mail.

(5) When duplicate or dual coverage exists by reason of two (2) different insurers having issued policies to the same employer, effective the same date, securing the same liability, as evidenced by certificates of insurance on file with the “Division” one (1) of the policies may be cancelled as of the date the notice of termination is filed with the “Division” and a copy thereof served upon the employer; provided that the terminating insurer may effect retroactive cancellation by filing with the “Division” a written statement from the other insurer that it assumes full liability in connection with the insured from the cancellation date of the policy which is to be terminated.

(6) Where duplicate or dual coverage exists by reason of two (2) different insurers having issued policies of insurance with different effective dates to the same employer, covering the same liability, the insurer which was first on the risk may terminate its coverage upon the effective date of the later coverage of the other insurer by giving notice to the “Division” and to the employer. Where the policy with the later effective date has already been terminated by filing official notice of termination, it will be presumed that the employer is without coverage in the absence of a replacement certificate of insurance.

(7) When an employer is not (no longer) required by the Workers’ Compensation Law to secure the payment of compensation to his employee(s) and the employer has so advised the insurer in writing that such coverage is not required by the Act, nor desired, during the remainder of the policy period, the insurer may terminate said coverage effective upon filing notice of such termination with the “Division” stating therein the reason for termination and serving a copy thereof upon the employer in person or by mail.

(8) When 45 days notice otherwise is required pursuant to Section 627.4133, F.S., and the policy has been in effect for 90 days, no such policy shall be cancelled by the insurer except when there has been a material misstatement, a nonpayment of premium, a failure to comply with underwriting requirements established by the insurer within 90 days of the date of effectuation of coverage, or a substantial change in the risk covered by the policy or when the cancellation is for all insureds under such policies for a given class of insureds.

Specific Authority 624.308(1) FS. Law Implemented 440.42(2), 624.307(1), 627.4133(2)(b) FS. History–New 6-4-92, Formerly 4-189.011.