Calif. exclusion change affects other states coverage
As of January 1, some corporate officers must now execute a written waiver of their rights to benefits.
A California law that becomes effective January 1, 2017, amends the requirements related to the exclusion of certain corporate officers, members of the board of directors, general partners of a partnership, and managing members of an LLC. (Though the change becomes effective January 1, it also applies to in-force policies.)
Specifically, certain officers and directors, general partners, and managing members who elect to be excluded must now execute a written waiver of their rights to benefits under the California Labor Code. These waivers must be signed, returned, and accepted by January 1, otherwise previously exempted employees will be covered until a waiver is received. If received after January 1, the exclusion will be effective on the date of receipt. This exclusion will remain in effect until a written withdrawal is received by us.
Please note that most of the officers, partners, and LCC members on our Zurich other states coverage policies are Oregon subject, and therefore this law does not apply to them. However, there will be a handful of policies affected.
In late November, Zurich sent a notice of this change, along with a cover letter and the two waiver forms, to all of our customers with operations in California. The cover letter directs the policyholder to return the signed forms to USIS, and to direct any questions to their broker.
Please contact your SAIF underwriter or the OSC work group if you have questions.