Assigned Risk: Payment Plan & Cancellation

Describes procedure to require payment in full after second notice of non-pay.

Indiana law requires the ICRB and WC Board to approve cancellation of assigned risk policies (IC 27-7-2-31 and IC 27-7-2-37). Premium or a noncompliance matters must be outstanding for at least thirty days before the ICRB will consider a cancellation request. The servicing carrier must issue an original notice with at least two follow-up notices during that time (a total of 3 notices). The servicing carrier can submit this documentation to the ICRB requesting cancellation. Upon ICRB and WC Board approval, the carrier can then issue its cancellation.‚Äč

Indiana’s Basic Manual Rule 4-l-6-b provides information regarding premium installments and billing applicable to assigned risk policies. The Rule stipulates that once the servicing carrier has issued a second cancellation notice during the policy period, the employer’s payment plan privileges are forfeited for the balance of the policy period and payment of the entire outstanding balance of the premium is required to continue coverage.

b. Premium Installment Basis

(4) Upon issuance of a second nonpayment cancellation notice during the policy period, the installment plan privileges are forfeited for the balance of that policy period. To continue coverage, the entire outstanding balance of the premium owed must be paid prior to the cancellation date.