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Required legal notices for workers' compensation

Each of the following administrative rules and statutes include a provision that we are required to notify policyholders each policy year. To ensure compliance, we are including them in their entirety. However, other portions of our website have summarized the parts that are important to you.

If you have questions about any aspect of these required legal notices, please contact SAIF's assistant general counsel.

Oregon Administrative Rule 436-050-0055

Extraterritorial coverage 

(1) For the purposes of determining whether a worker is temporarily in or out of state under ORS 656.126, the director will use criteria including, but not limited to, the following: 

(a) The extent to which the worker’s work within the state is of a temporary duration; 

(b) The intent of the employer regarding the worker’s employment status; 

(c) The understanding of the worker regarding the employment status with the employer; 

(d) The permanent location of the employer and its permanent facilities; 

(e) The circumstances and directives surrounding the worker’s work assignment; 

(f) The state laws and regulations to which the employer is otherwise subject; 

(g) The residence of the worker; 

(h) The extent to which the employer’s work in the state is of a temporary duration, established by a beginning date and expected ending date of the employer’s work; and 

(i) Other information relevant to the determination. 

(2) Within 30 days after coverage of an Oregon employer is effective, the insurer providing the coverage must notify the employer in writing of the provisions of ORS 656.126 and this rule.

Oregon Revised Statute 656.126

Coverage while temporarily in or out of state; judicial notice of other state’s laws; agreements between states relating to conflicts of jurisdiction; limitation on compensation for claims in this state and other jurisdictions.

(1) If a worker employed in this state and subject to this chapter temporarily leaves the state incidental to that employment and receives an accidental injury arising out of and in the course of employment, the worker, or beneficiaries of the worker if the injury results in death, is entitled to the benefits of this chapter as though the worker were injured within this state. 

(2) Any worker from another state and the employer of the worker in that other state are exempted from the provisions of this chapter while that worker is temporarily within this state doing work for the employer: 

(a) If that employer has furnished workers’ compensation insurance coverage under the workers’ compensation insurance or similar laws of a state other than Oregon so as to cover that worker’s employment while in this state; 

(b) If the extraterritorial provisions of this chapter are recognized in that other state; and 

(c) If employers and workers who are covered in this state are likewise exempted from the application of the workers’ compensation insurance or similar laws of the other state. The benefits under the workers’ compensation insurance Act or similar laws of the other state, or other remedies under a like Act or laws, are the exclusive remedy against the employer for any injury, whether resulting in death or not, received by the worker while working for that employer in this state. 

(3) A certificate from the duly authorized officer of the Department of Consumer and Business Services or similar department of another state certifying that the employer of the other state is insured therein and has provided extraterritorial coverage insuring workers while working within this state is prima facie evidence that the employer carries that workers’ compensation insurance. 

(4) Whenever in any appeal or other litigation the construction of the laws of another jurisdiction is required, the courts shall take judicial notice thereof. 

(5) The Director of the Department of Consumer and Business Services shall have authority to enter into agreements with the workers’ compensation agencies of other states relating to conflicts of jurisdiction where the contract of employment is in one state and the injuries are received in the other state, or where there is a dispute as to the boundaries or jurisdiction of the states and when such agreements have been executed and made public by the respective state agencies, the rights of workers hired in such other state and injured while temporarily in Oregon, or hired in Oregon and injured while temporarily in another state, or where the jurisdiction is otherwise uncertain, shall be determined pursuant to such agreements and confined to the jurisdiction provided in such agreements. 

(6) When a worker has a claim under the workers’ compensation law of another state, territory, province or foreign nation for the same injury or occupational disease as the claim filed in Oregon, the total amount of compensation paid or awarded under such other workers’ compensation law shall be credited against the compensation due under Oregon workers’ compensation law. The worker shall be entitled to the full amount of compensation due under Oregon law. If Oregon compensation is more than the compensation under another law, or compensation paid the worker under another law is recovered from the worker, the insurer shall pay any unpaid compensation to the worker up to the amount required by the claim under Oregon law. [Amended by 1955 c.723 §1; 1957 c.474 §1; 1977 c.804 §4; 1989 c.684 §1; 1995 c.332 §10; 1997 c.234 §1]

Oregon Administrative Rule 436-060-0055

Payment of Medical Services on Nondisabling Claims; Employer/Insurer Responsibility

(1) General. Notwithstanding the choice made by the employer under this rule, the employer and insurer must process nondisabling claims in accordance with all statutes and rules governing claims processing. The employer, however, may reimburse the medical service costs paid by the insurer as prescribed in section (3) of this rule. 

(2) Notice to employers.Before the beginning of each policy year, the insurer must notify the insured or prospective insured employer of the employer’s right to reimburse medical service costs on accepted, nondisabling claims up to the maximum amount as published in Bulletin 345. The notice must advise the employer: 

(a) Of the procedure for making such payments as outlined in section (3) of this rule; 

(b) Of the general impact on the employer if the employer chooses to make such payments; 

(c) That the employer is choosing not to participate if the employer does not respond in writing within 30 days of receipt of the insurer’s notice; 

(d) That the employer’s written election to participate in the reimbursement program remains in effect, without further notice from the insurer, until the employer advises otherwise in writing or is no longer insured by the insurer; and 

(e) That the employer may participate later in the policy period upon written request to the insurer, however, the earliest reimbursement period is the first completed period, established under subsection (3)(a) of this rule, following receipt of the employer’s request. 

(3) Procedure for reimbursement.If the employer wishes to reimburse the medical service costs paid by the insurer, and has advised the insurer of their election to participate in the reimbursement program in writing under section (2) of this rule: 

(a) Within 30 days following each three month period after policy inception or a period mutually agreed upon by the employer and insurer, the insurer must provide the employer with a list of all accepted nondisabling claims for which payments were made during that period and the respective cost of each claim; 

(b) The employer, no later than 30 days after receipt of the list, must identify those claims and the dollar amount the employer wishes to pay for that period and reimburse the insurer accordingly. The employer and insurer may, by written agreement, establish a period in excess of 30 days for the employer to reimburse the insurer; 

(c) Failure by the employer to reimburse the insurer within the 30 days allowed by subsection (b) will be deemed notice to the insurer that the employer does not wish to make a reimbursement for that period; and 

(d) The insurer must continue to bill the employer for any payments made on the claims within 27 months of the inception of the policy period. Any further billing and reimbursement will be made only by mutual agreement between the employer and the insurer. 

(4) Records. The insurer must maintain records of amounts reimbursed by employers for medical services on nondisabling claims. For medical service costs reimbursed under this rule: 

(a) The insurer may not modify an employer’s experience rating or otherwise make charges against the employer based on the costs; and 

(b) If the employer is on a retrospective rated plan, the medical costs paid by the employer on nondisabling claims must be included in the retrospective premium calculation, but the insurer must apply the amount paid by the employer as credits against the resulting retrospective premium. 

(5) Reclassified claims.If a claim changes from a nondisabling to a disabling claim and the insurer has recovered reimbursement from the employer for medical costs billed by the insurer before the change, the insurer must exclude those amounts reimbursed from any experience rating, or other individual or group rating plans of the employer. If the employer is on a retrospective rated plan, the premium must be calculated as provided in section (4) of this rule. 

(6) Penalties.Insurers that do not comply with the requirements of this rule or in any way prohibit an employer from reimbursing the insurer under section (3) of this rule, may be subject to a penalty as provided by OAR 436-060-0200. 

(7) Self-insured employers. Self-insured employers must maintain records of all amounts paid for medical services on nondisabling claims under OAR 436-050-0220. When reporting loss data for experience rating, the self-insured may exclude costs for medical services paid on nondisabling claims in amounts not to exceed the maximum amount published in Bulletin 345. 

Oregon Administrative Rule 836-043-0120

Minimum Standards of Insured Education Program

(1) At or before policy issuance, an insurer shall make available to the insured information covering the matters identified in this section. This information may be delivered via electronic means, as provided for under ORS Chapter 84. 

(a) Which workers are subject to the Workers' Compensation Law for whom premiums must be paid; 

(b) What remuneration is subject to premium charges; 

(c) How to divide payroll between assigned classifications, as established in OAR 836-042-0060; 

(d) The requirements for verifiable records, as established in OAR 836-042-0060; 

(e) The existence and nature of premium audits and the appeal process afforded insureds by ORS 737.505; 

(f) The insured’s responsibility to notify the insurer of changes in the business structure and operations; and 

(g) The classification notice requirements prescribed by OAR 836-043-0175 to 836-043-0185. 

(2) When the insurer becomes aware of changes in the insured’s business that affect the reporting of payroll or other exposure basis, the insurer shall provide additional appropriate instruction to the insured. 

(3) When changes in statute, rules or rating system occur that affect reporting of payroll or other exposure basis, the insurer shall provide notification of such changes to insureds as soon as reasonably possible. 

Statutory/Other Authority: ORS 731.244, 737.310 & 737.318 
Statutes/Other Implemented: ORS 737.318 
ID 13-2012, f. 7-16-12, cert. ef. 1-1-13 
ID 1-1999, f. & cert. ef. 2-19-99 
ID 1-1988, f. & cert. ef. 1-20-88 

Oregon Administrative Rule 836-043-0185

Insurer Classification Notice

(1) When an insurer issues a workers' compensation insurance policy to an insured for the first time, an insurer shall provide each insured a written rate classification notice describing the work activities of each classification assigned. This information may be delivered via electronic means, as provided for under ORS Chapter 84. 

(2) The rate classification notice shall include the following information: 

(a) The complete description for each classification assigned as contained in the insurers' classification system filed with and approved by the director; 

(b) An adequate description of work activities for such classification as reviewed by the director; 

(c) One or more publications that include basic ratemaking and classification information and necessary records and reporting procedures for the division of payroll of an individual employee among classifications assigned as provided for under OAR 836-042-0060; 

(d) An amendatory endorsement to the policy for reclassification assignments during the policy year as provided for under ORS 737.310(13). 

(3) When an insurer provides the written rate classification notice required under ORS 737.310 (12) and (13), the notice must be given in the manner prescribed by section (2) of this rule. 

Oregon Revised Statute 737.310

(12) At the time an insurer issues a workers’ compensation insurance policy to an insured for the first time, the insurer shall give written notice to the insured of the rating classifications to which the insured’s employees are to be assigned and shall provide an adequate description of work activities in each classification. In the event an insurer recommences coverage following its termination, the notice required under this subsection must be given only if the gap in coverage exceeds six months. 

(13) If an insurer determines the workers’ compensation insurance policy of an insured needs reclassification, the insurer: 

(a) May bill an additional premium for the revised classification after the insurer has provided the insured at least 60 days’ written notice of the reclassification. 

(b) Shall bill retroactively to policy inception or date of change in insured’s operations for any reclassification that results in a net reduction of premium. 

(c) May, notwithstanding paragraph (a) of this subsection, retroactively bill an insured for reclassification during the policy year without prior notice of reclassification if the insurer shows by a preponderance of the evidence that: 

(A) The insured knew that the employees were misclassified, or the insured was adequately informed by the insurer of the proper classification for the insured’s employees; 

(B) The insured provided improper or inaccurate information concerning its operations; or 

(C) The insured’s operations changed after the date information on the employees was obtained from the insured.