The national Workers Compensation guide covers the standard workers compensation and employers liability policy and how it is rated. This guide covers the West Virginia rules under Chapter 23 of the West Virginia Code:

• the move from a monopolistic state fund to a private, competitive market
• who must be covered
• elections out
• notice rules for carriers
• the employer's immunity

From state fund to private market (W. Va. Code 23-2C-1)

• West Virginia used to have a state-run monopolistic workers compensation system. The legislature found it in a funding crisis.
• An employers' mutual took over on January 1, 2006.
• The state opened to a private, competitive market on July 1, 2008.
• West Virginia is no longer monopolistic. Today the monopolistic states are North Dakota, Ohio, Washington and Wyoming.

How employers get coverage (23-2C-15)

• An employer buys coverage from a private carrier licensed in West Virginia, or self-insures if it qualifies.
• Carriers may sell through licensed agents, and they are fully subject to Chapter 33 and the Insurance Commissioner.
• Workers compensation insurance provides all compensation and benefits required by Chapter 23 (33-1-10(e)(14)).
• Every employer must post a notice naming its workers compensation insurer, with its address and phone number and whom to contact about a claim.

Who must be covered (23-2-1)

Coverage applies to the state, its subdivisions, volunteer fire departments and anyone regularly employing another person, unless an exemption applies.

Employers not required to carry coverage include:

• employers of domestic workers
• agricultural employers with five or fewer full-time employees, who may elect coverage
• casual employers: no more than three employees doing temporary, sporadic work for no more than 10 days in a calendar quarter
• churches, among others

Elections out (23-2-1(d)):

• A partnership, sole proprietorship or association may choose not to cover its partners or owner.
• A corporation may choose not to cover board members and its president, vice president, secretary and treasurer. Other officers who actually work as employees can't be excluded just because of a title.
• An LLC may exclude no more than four managers, officers or members in total.

The employer's immunity

• A complying employer that isn't in default is immune from damage suits by employees for work injuries (23-2-6).
• A defaulting employer must post a notice that it is liable to employees for both workers compensation benefits and common-law or statutory damages (23-2-5).

Carrier notice rules (23-2C-15)

The claims-handling rule for other lines (CSR 114-14) doesn't apply to workers compensation.

Guaranty protection

The West Virginia Insurance Guaranty Association has a separate workers compensation account and pays covered workers compensation benefits in full. Claims for deliberate intent are capped at $300,000 (33-26-8).

Common exam traps

• West Virginia was monopolistic but opened to private carriers on July 1, 2008. It isn't monopolistic now.
• Private carriers are regulated by the Insurance Commissioner under Chapter 33.
• WC cancellation is 30 days, or 10 for nonpayment or audit refusal. Nonrenewal is 60 days.
• Small farms with 5 or fewer full-time workers are exempt.
• An LLC may exclude no more than four people.
• A defaulting employer loses its immunity and can be sued for damages too.