STATUS OF SUBMISSION
The Status of Submission has 4 check boxes. These are not mutually exclusive.
QUOTE: Check this if all you are asking for is a quote.
ISSUE POLICY: This is telling your underwriter to go ahead and issue the policy even before they tell you the cost. If you show a policy status of BOUND, you should also check the ISSUE POLICY box.
BOUND: Check this if you have bound the policy. Be certain your agency has binding authority for this line of business with the carrier on whom you are binding the coverage. If you are uncertain, call, email or text your underwriter. Binding a policy means you have legally put coverage in force. Even if the carrier does not give you this authority, the carrier is likely now on this risk and will have to issue notice of cancellation to get off this risk.
ASSIGNED RISK: Notice, if you check this box you also need to complete the ACORD 133 form. States provide Assigned Risk pools to provide workers compensation to businesses insurance carriers do not wish to write on a voluntary basis. Since Workers Compensation laws require businesses with 4 or more employees to carry Workers Compensation insurance, each state provides the Assigned Risk pool as a market of last resort. The price charged to a business insured in the assigned risk pool is higher than the price charged to the same business if they found insurance coverage outside of the assigned risk pool.
BILLING / AUDIT INFORMATION
BILLING PLAN:
The Agency Bill option means your agency is responsible to the carrier for the premiums and your customer is responsible to you for the premium. You will have to issue the invoices and collect the premium. If you cannot collect the premium, depending on your carrier / agency contract, you may just be out this money and receive no help from your carrier.
The Direct Bill option means the carrier bills the customer directly. They are responsible for invoicing and collecting. If the customer does not pay, your agency is not liable for that amount. In fact, you may even still get paid your commission on the policy.
PAYMENT PLAN:
Annual, Semi-annual, Quarterly are all mutually exclusive options. Check to box that applies.
The box with no text beside it is for you to enter any other billing plan. For example, some plans are monthly, some are monthly reporting, etc.
The % Down is asking for you to enter the percentage of the total estimated premium the customer is paying you upon the policy going into effect.
AUDIT:
Workers compensation premiums are based on payroll. Payroll is estimated when the policy is issued or quoted. But the carrier reserves the right to audit the actual payroll and revise the premium.
Check the box for the audit time period the carrier will use for this policy. For smaller policies this will mostly be AT EXPIRATION.
These boxes are mutually exclusive. Check only one.
The check box with no text next to it is for any other audit period not listed by the other check boxes.
I hope this helps you in learning how to complete the ACORD 130 Workers Compensation Application.
We all learn things for the first time at some point. Please share this as often as you wish.
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