Employer's entire liability to be covered, self-insurer or approved carrier
Employers in Missouri who have to follow workers' compensation law must have insurance to cover what they owe injured workers. They can get this through a regular insurance company or, if they can prove they have enough money, they can cover it themselves — this is called self-insuring. A group of employers can also team up to self-insure together. If an employer skips out on getting coverage and a worker gets hurt, that worker has extra options to get money, including suing the employer directly without the usual defenses the employer could normally use.
287.280. Employer's entire to be covered, or approved — — group of employers may qualify as , requirements — s — confidential records. — 1. Every employer subject to the of this chapter shall, on either an individual or group basis, insure their entire liability under the law; and may insure in whole or in part their employer liability, under a policy of insurance or a , except as hereafter provided, with some to insure such liability in this state, except that an employer or group of employers may themselves carry the whole or any part of the liability without insurance upon satisfying the of their ability to do so. If an employer or group of employers have qualified to their liability under this chapter, the may, if it finds after a that the employer or group of employers are and intentionally violating the provisions of this chapter with their employees of their right to , or the right of the employer or group of employers to self-insure their liability. If the employer or group of employers fail to comply with this section, an injured employee or his or her may elect after the injury either to bring an against such employer or group of employers to recover for personal injury or death and it shall not be a that the injury or death was caused by the negligence of a , or that the employee had of the injury or death, or that the injury or death was caused to any degree by the negligence of the employee; or to recover under this chapter with the compensation payments and immediately payable; or, if the employee elects to do so, he or she may file a request with the division for payment to be made for medical expenses out of the as provided in 7 of section 287.220. If the employer or group of employers are carrying their own insurance, on the of any person entitled to compensation and on of in the payment of any installment, the division shall require the employer or group of employers to furnish for the payment of the compensation, and if not given, all other compensation shall be commuted and become immediately payable; provided, that employers engaged in the mining business shall be required to insure only their liability hereunder to the extent of the equivalent of the maximum liability under this chapter for ten deaths in any one accident, but the employer or group of employers may carry their own risk for any excess liability. When a group of employers enter into an agreement to pool their under this chapter, individual members will not be required to qualify as individual self-insurers.
2. Groups of employers qualified to insure their liability chapter 537 or this chapter shall utilize a by an approved . Such groups shall develop s for their members based on the plan. Nothing in this section shall relieve an employer from remitting, without any charge to the employer, the employer's history to an approved advisory organization.
3. For every qualified to group self-insure their liability pursuant to this chapter or chapter 537, each entity shall not authorize total discounts for any individual member exceeding twenty-five percent beginning January 1, 1999. All discounts shall be based on objective quantitative factors and applied ly to all trust members.
4. Any group of employers that have qualified to self-insure their liability pursuant to this chapter shall file with the division rates, based on data, adjusted for and as filed by the advisory organization with the of commerce and insurance pursuant to section 287.975, plus any estimated expenses and other factors or based on average rate classifications calculated by the department of commerce and insurance as taken from the premium rates filed by the twenty insurance companies providing the greatest volume of coverage in this state. The rate is if s equal to the full ultimate cost of anticipated losses and are not produced when the are applied to anticipated payrolls. The provisions of this subsection shall not apply to those of this state that have qualified to self-insure their liability pursuant to this chapter as authorized by section 537.620 on an plan. Any such group may file with the division a composite rate for all coverages provided under that section.
5. When considering applications for new trust self-insurers, as described under 8 CSR 50-3.010, the division shall require proof of payment by each member of not less than twenty-five percent of the estimated annual premium; except that, for new members who wish to join an existing trust self-insurer during the policy year rather than at the beginning of the policy year, the division shall require proof of payment of the lesser of the estimated premium of three months or the estimated premium for the balance of the policy year.
6. trusts, as described under 8 CSR 50-3.010, may invest from a prior trust year not needed for current obligations. any of law to the contrary, upon approval by the division, a self-insured trust may invest up to one hundred percent of surplus moneys in by the as acceptable to secure state under section 30.270.
7. Any finding or made by the division under this section may be reviewed as provided in sections 287.470 and 287.480.
8. If a group of employers who have been granted under this chapter or chapter 537 or a public sector individual employer granted self-insurance authority under this chapter is , determined to be insolvent, or files for bankruptcy, and fails to pay any of its obligations that are owed to an injured employee or an injured employee's or dependents pursuant to this chapter, whether based upon a approved pursuant to section 287.390 or based upon an issued pursuant to this chapter, the division shall call upon the entire security posted by the group of employers or public sector individual employer. The division may refer all known losses or cases of the group of employers or public sector individual employer to a or any such entity authorized in this state to the workers' compensation cases. The third-party administrator or entity to which the losses are transferred shall have the to receive the security from the division and use the proceeds, after deducting reasonable , to pay the owed pursuant to this chapter. The security proceeds shall not be considered state property and shall not be subject to by the . Any unused portion of the security proceeds shall be returned to the division. The group of employers or public sector individual employer may apply to the division for of the unused portion of the security proceeds as set forth in rules promulgated by the division. Neither the division nor any third-party administrator shall be or required to pay any obligations or moneys in an amount in excess of the security proceeds, and neither the division nor any third-party administrator shall be for any interest or penalties. The of the members of a group that is deemed insolvent, that is determined to be insolvent, or that files for bankruptcy shall continue and shall not be terminated by payment of benefits under this subsection.
9. No rule or portion of a rule promulgated under the authority of this section shall become effective unless it has been promulgated pursuant to the provisions of section 536.024.
10. Any records submitted pursuant to this section, and pursuant to any rule promulgated by the division pursuant to this section, shall be considered confidential and not subject to chapter 610. Any to a workers' compensation case involving the party that submitted the records shall be able to the records for use in a workers' compensation case, if the is otherwise relevant.
(RSMo 1939 § 3713, A.L. 1957 p. 560, A.L. 1965 p. 397, A.L. 1974 S.B. 417, A.L. 1980 H.B. 1396, A.L. 1981 S.B. 382, A.L. 1993 S.B. 251, A.L. 1995 S.B. 3, A.L. 1998 H.B. 1237, et al., A.L. 2013 S.B. 1, A.L. 2017 S.B. 66, A.L. 2021 S.B. 303)
Prior revision: 1929 § 3323
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