DWD 80.61 DWD 80.61 Divided-insurance and partial-insurance requirements under s. 102.31 (1) and (6), for all employers, including contractors working on a wrap-up project.

DWD 80.61(1) (1) Definitions. In this section:

DWD 80.61(1)(a) (a) “Divided-insurance” means consent to the issuance of 2 or more policies, as provided in s. 102.31 (1), Stats.

DWD 80.61(1)(b) (b) “Partial-insurance” means self-insurance of a part of the liability and consent to the issuance of one or more policies on the remainder of the liability, as provided in ss. 102.28 (2) (b) and 102.31 (1), Stats.

DWD 80.61(2) (2) Requirements.

DWD 80.61(2)(a) (a) The requirements for partial-insurance and divided-insurance by 2 or more insurance companies are as follows:

DWD 80.61(2)(a)1. 1. Submission of an application on department forms available from the department. If the application is approved, the department shall permit partial-insurance or divided-insurance by written order. In the application, the employer shall agree to assume full responsibility to immediately make all payments of compensation and medical expense as the department may require, pending a final determination as to liability between the insurance carriers under divided-insurance or between the employer and the insurance carrier under partial-insurance, if a dispute should arise as to which insurance company or whether the employer or insurance company is responsible for a particular injury or illness sustained during the time the written order is in effect.

DWD 80.61(2)(a)2. 2. If the applicant is a political subdivision of the state, it shall submit a certified statement by an officer or the attorney for the political subdivision which cites the legal authority for executing the application and agreement when the initial application is submitted.

DWD 80.61(2)(a)3. 3. If the employer is a corporation, it shall submit a certified copy of the resolution adopted by the board of directors authorizing the execution of the initial application. Applications by organizations other than corporations shall be signed by person(s) possessing authority to execute such application. Partnerships must submit a consent by all the partners that the individual(s) executing the application has the authority to act for the applicant partnership.

DWD 80.61(2)(a)4. 4. Partial-insurance or divided insurance shall not be permitted when the portion of the entity to be insured is unable to obtain coverage under voluntary markets. Otherwise,

DWD 80.61(2)(a)4.a. a. The department shall permit divided-insurance to municipalities which have ownership of nursing homes in order that the nursing homes may be separately insured and develop a separate experience rate.

DWD 80.61(2)(a)4.b. b. Subdivision 4. a. does not apply after December 31, 1992.

DWD 80.61(2)(b) (b) Renewal applications shall be submitted to the department on a department form no later than 3 months prior to the expiration date of the department’s order. Partial-insurance and divided-insurance shall expire on the date specified in the order unless continued in force by further order, as the department deems necessary.

DWD 80.61 Note Note: To obtain a renewal application form, contact the Department of Workforce Development, Worker’s Compensation Division, 201 East Washington Avenue, P.O. Box 7901, Madison, Wisconsin 53707 or call [phone].

DWD 80.61(3) (3) Divided-insurance for designated carrier wrap-up construction projects.

DWD 80.61(3)(a) (a) Definitions. In this subsection:

DWD 80.61(3)(a)1. 1. “Bureau” means the Wisconsin compensation rating bureau.

DWD 80.61(3)(a)2. 2. “Designated wrap-up carrier” means the designated carrier or insurance company which insures the wrap-up project under ch. 102, Stats.

DWD 80.61(3)(a)3. 3. “Job site” means the premises and vicinity upon which the operations covered under the contract with the contractor or subcontractor are to be performed.

DWD 80.61(3)(a)4. 4. “Material supplier” means vendors, suppliers, material dealers, and others whose function is solely to supply or transport material, equipment, or parts to or from the construction site.

DWD 80.61(3)(a)5. 5. “Owner” means the person, firm, corporation or municipality having lawful possession of the construction project.

DWD 80.61(3)(a)6. 6. “Regular carrier” means the insurance company which insures all operations of a contractor or subcontractor under ch. 102, Stats., except for work done on the wrap-up project.

DWD 80.61(3)(a)7. 7. “Subcontractor” means a person who contracts with a contractor and also includes any subcontractor of a subcontractor.

DWD 80.61(3)(a)8. 8. “Wrap-up project” means a construction project wherein the owner selects a carrier, and this carrier issues a separate worker’s compensation policy to each contractor and subcontractor scheduled to work on the project for work which will be done on the project, and where the owner pays for each such policy.

DWD 80.61(3)(b) (b) Minimum wrap-up project requirements. Wrap-up projects shall comply with the following:

DWD 80.61(3)(b)1. 1. The estimated project cost of completion shall be equal to at least $25 million. The estimated project cost of completion shall be the estimate of the costs of the total construction contracts to be awarded by the owner on the wrap-up project.

DWD 80.61(3)(b)2. 2. The estimated standard worker’s compensation manual premium shall be equal to $250,000 or more.

DWD 80.61(3)(b)3. 3. The project shall be confined to a single location except that in connection with the building of a road, bridge, pipeline, tunnel, waterway, or 2 or more concurrent wrap-up projects involving the same owner and the same insurance carrier the entire job or the concurrent projects are considered as a single project location.

DWD 80.61(3)(b)4. 4. The project shall have a definite completion date involving work to be performed continuously until completion and may not be extended to include maintenance work following completion.