Workers Compensation

Plain English Breakdown

The bill's effectiveness date is July 1, 2027.

Zero Estimated Exposure Policy Act

This bill requires construction service providers with a 'zero estimated exposure policy' to notify contractors about their total estimated exposure being zero and keep certain information confidential.

What This Bill Does

• Requires construction services providers who obtain a 'zero estimated exposure policy' to provide written notice to all entities they directly contract for building work, stating the provider's total estimated exposure is zero and providing a copy of the policy.
• Entities receiving this notification must keep it and the policy for three years unless the entity is a homeowner working on their single-family home or primary residence.
• Insurers must obtain signed statements from applicants applying for 'zero estimated exposure policies' confirming the accuracy of application information, including that they have no employees and an estimated exposure of zero.

Who It Names or Affects

• Construction services providers who obtain a 'zero estimated exposure policy'.
• Entities contracting directly with these providers for building work.
• Homeowners contracting for construction or improvements to their single-family residence or primary residence are exempt from retaining written notifications.
• Insurers providing 'zero estimated exposure policies' and state agencies inspecting public records.

Terms To Know

Zero Estimated Exposure Policy

An insurance policy that a construction service provider obtains to cover their liability for workers' compensation after reporting an estimated total exposure of zero.

Construction Services Provider

A company or individual providing services related to building construction or improvement.

Limits and Unknowns

• The bill does not specify what happens if a provider fails to comply with the notification requirements.
• It is unclear how this act will be enforced and what penalties might apply for non-compliance.

Official Summary Text

As of July 1, 2027, this bill requires, if a construction services provider obtains a zero estimated exposure policy, the provider to
provide written notification to all entities it directly contracts with to provide or perform building construction or improvement services of the provider's total estimated exposure of zero and provide a copy of the policy. As used in this bill, a "zero
estimated exposure policy" means a policy of insurance that a construction services provider obtains to cover the provider's liability to pay compensation under the Workers' Compensation Law after reporting the total estimated exposure is zero.

This bill requires, when an entity receives the notification described above, the entity to maintain the written notification and policy provided for three years from the date the notification and policy were received. However, a homeowner contracting f
or the construction of a single-family residence or improvements to the homeowner's primary residence is not required to retain the written notification.

This bill requires each insurer to require with, or as part of, each completed application for a zero estimated exposure policy a statement signed by the applicant attesting to the accuracy of the information on the application, including the applicant's
absence of employees and estimated exposure of zero. The attestation must also include the statement described in this bill.

EMPLOYERS' COMPENSATION INSURANCE

Present law authorizes the administrator of the bureau of workers' compensation to request and obtain information regarding employer workers
'
compensation insurance policies in order to ensure compliance with the Workers' Compensation Law. Generally, an
y information relating to such policies obtained by the administrator is deemed confidential and does not constitute a public record. However, such information may be used by any state agency, or vendor designated by the state, for the purpose of ensurin
g
compliance with the Workers' Compensation Law. Additionally, the following information obtained by the administrator does constitute a public record and must be open for personal inspection by any citizen of this state:



Employer name and business address.


Workers' compensation insurance carrier name and business address.


Workers' compensation insurance policy number, policy effective date, policy expiration date, policy cancellation date, and policy reinstatement date.

This bill adds to the above list, for construction services providers, the provider's total estimated exposure amount for a zero estimated exposure policy and the provider's reported classification codes for a zero estimated exposure policy.

Current Bill Text

HOUSE BILL 1685
By Hawk

SENATE BILL 1579
By Walley
SB1579
010413
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 50,
Chapter 6, relative to workers' compensation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 50, Chapter 6, Part 9, is amended by
adding the following as a new section:
(a) This section is known and may be cited as the "Zero Estimated Exposure
Policy Act."
(b) As used in this section, "zero estimated exposure policy" means a policy of
insurance that a construction services provider obtains to cover the construction services
provider's liability to pay compensation under this chapter after reporting the total
estimated exposure is zero (0).
(c)
(1) If a construction services provider obtains a zero estimated exposure
policy, the construction services provider must provide written notification to all
entities it directly contracts with to provide or perform building construction or
improvement services of the construction services provider's total estimated
exposure of zero (0) and provide a copy of the policy.
(2) When an entity receives the notification required by subdivision (c)(1),
the entity must maintain the written notification and policy provided for three (3)
years from the date the notification and policy were received.
(3) A homeowner contracting for the construction of a single-family
residence or improvements to the homeowner's primary residence is not required
to retain the written notification required by subdivision (c)(1).

- 2 - 010413

(d) Each insurer shall require with or as part of each completed application for a
zero estimated exposure policy a statement signed by the applicant attesting to the
accuracy of the information on the application, including the applicant's absence of
employees and estimated exposure of zero (0). The attestation must include the
following statement:
I attest that all information provided on this application is current, true, correct,
accurate, and complete to the best of my knowledge and belief. I further attest
that I have no employees and an estimated exposure of zero (0). If during the
policy period I employ any employees or otherwise have an exposure greater
than zero (0), I must provide within sixty (60) days of such change written
notification to my workers' compensation insurer that includes estimated payroll
and classification codes. I understand that omissions or misrepresentations with
intent to defraud on this application are a crime under Tennessee Code
Annotated, Section 56-47-103 and a violation of Tennessee Code Annotated,
Section 56-47-104.
SECTION 2. Tennessee Code Annotated, Section 50-6-421(b), is amended by adding
the following as a new subdivision:
(4) For construction services providers as defined in § 50-6-901, the construction
services provider's total estimated exposure amount for a zero estimated exposure
policy and the construction services provider's reported classification codes for a zero
estimated exposure policy.
SECTION 3. This act takes effect July 1, 2027, the public welfare requiring it.