DOLI changes cancellation rule

The Minnesota Department of Labor and Industry has changed workers' compensation policy rules effective Aug. 1.

According to these changes, an insurer must send all cancellation, termination and non-renewal notices 60 days in advance. This includes sending notices for non-payment of premiums to a policyholder 60 days, rather than 30 days before the date coverage will cease.

Also, DOLI is requiring the 60-day advance notice to say: "You must maintain workers' compensation insurance, or obtain permission to self-insure for workers' compensation from the Minnesota Department of Commerce. Failure to maintain workers' compensation coverage is a violation of Minnesota Statute, Section 176.181, and could result in criminal prosecution and civil penalties of up to $1,000 per week per uninsured employee."

DOLI no longer will send a follow-up notice. Notice is in the form of the language added to the advance notices sent by the insurer.