Date: October 1, 2004
The Workers' Compensation Board is issuing this subject number to emphasize the need for carriers to electronically file all renewal transactions using the IAIABC format.
The Board adopted the IAIABC electronic standard for Proof of Coverage (POC) on December 1, 2001. The Board requires carriers to report policy information for specific contract terms in order to ensure that all active employers have up-to-date coverage. In the IAIABC format, all policy transactions are related to specific policy terms.
When a carrier attempts to cancel a policy whose term has not been reported to the Board as renewed, the cancellation is rejected because the cancellation falls outside the policy expiration date of the last term reported to the Board.
Therefore, carriers must submit all policy information associated with renewed terms of insurance for a workers' compensation policy. The Board notes that the failure to report renewal transactions has been particularly prevalent in those carriers who are using the Board's POC web site.
Carriers can find additional information regarding this standard in the IAIABC EDI Implementation Guide for Proof of Coverage, Release 2, May 1, 2002 edition.
David P. Wehner