SAN FRANCISCO, CA, Nov. 21, 2018 -- ACORD is working to revise its Form 130, used by insurers and producers as an application for workers’ compensation insurance coverage, to conform to a California Department of Insurance (CDI) Notice issued last week, CDI attorneys said.

The CDI Notice, released Nov. 14, concluded that two questions on the ACORD form--#10 (“ANY EMPLOYEES UNDER 16 OR OVER 60 YEARS OF AGE?”) and #13 (“ANY EMPLOYEES WITH PHYSICAL HANDICAPS?”)– if used for rating purposes would violate various provisions of California law.

Some insurers, notably including the State Compensation Insurance Fund, had previously disabled those questions on its electronic applications, but software applications utilized by other insurers still require a response to those questions—even if the information isn’t used in underwriting or rating—in order for the applications to be electronically accepted.

IIABCal General Counsel Steve Young suggested that until ACORD releases its modified, California-only Form 130, producers should contact their workers’ compensation insurers to determine how best to comply with the Commissioner’s Notice.   CDI attorneys believe ACORD might be able to release the revised form before year end, but that is solely within ACORD’s discretion and control. CDI does not approve its forms.

Young said members have asked whether they should simply answer “No” to questions 10 and 13 until such time as the form is modified, even if that answer was not accurate.  He urged producers not to make—or let applicants make—any untruthful statements on applications, even in cases where the information being provided could not be used for underwriting or rating purposes.

 View The CDI Notice Here.