D.C. Mun. Regs. tit. 7, r. 7-216

Current through Register 71, No. 45, November 7, 2024

Rule 7-216 - TERMINATION OF COVERAGE

216.1

Termination of coverage shall be accomplished in the manner provided by § 39(b) of the Act [§ 36 -338(b), D.C. Code, 1981 ed.] and this section.

216.2

Carriers shall notify the Office whenever they intend to cease providing coverage to an employer on the Termination Notice.

216.3

Carriers shall file by certified mail, return receipt requested. The receipt shall identify the establishment whose coverage shall be subject to termination.

216.4

Carriers shall serve a copy of the Termination Notice upon the employer when termination is for one (1) of the following reasons:

(a) Request of carrier or agency;

(b) No employees; or

(c) Change of carrier.

216.5

No termination shall take effect prior to thirty (30) days after the date of filing Termination Notice with the Office.

216.6

Notice of termination refers to coverage, not policies. Therefore, no notice shall be filed with the Office in the absence of a bona fide intent to terminate coverage.

216.7

Carriers, upon filing Termination Notice, shall retain the copy labeled "Reinstatement" in their file. If at a later date they reinstate coverage they shall file this Reinstatement Notice with the Office.

216.8

The reason for termination of coverage shall be indicated on the form as follows:

(a) The term "Change of Carrier" means the substitution of one (1) carrier for another at the option of an agent or insured;

(b) The term "Out of Business" means the definitive conclusion of the operation of an establishment, including the activities required to close down;

(c) The term "Business Sold" means the substitution of one (1) employer for another by reason of change in ownership;

(d) The term "No Employees" means the discharge of all employees;

(e) The term "Non-Payment of Premium" means the absence of full payment of premium by covered employer; except that, the term does not apply to an employer no longer in business; and

(f) The term "Request of Carrier and/or Agency," means a termination which serves the purposes of a carrier or agency.

D.C. Mun. Regs. tit. 7, r. 7-216