Barkley Newsletter – September 2018
Legislative Updates & Introductions to the Barkley Team
In this legislatve brief, we alert you to changes created by SB 189 which will take effect on July 1, 2018.
APPLICABLE TO POLICIES THAT ARE ENTERED INTO OR RENEWED ON OR AFTER JULY 1, 2018:
1. Officers/Directors Exclusion: Stock Ownership Interest Reduced from 15% to 10% (CHANGE)
Beginning July 1, 2018, any corporate officer or member of a board of directors of a quasi-public or private corporation who owns at least 10% of the issued and outstanding stock may elect to be excluded from coverage by executing a written waiver. This is a change from the current law which requires 15% stock ownership interest for a corporate officer or board member to be excluded from coverage.
If you qualify to be excluded from coverage under the new legislative provisions, you must execute a written waiver if you wish to be excluded from coverage. If you provide us with an executed waiver, the exclusion will appear on your policy if the effective date is on or after July 1, 2018.
2. Officers/Directors Exclusion: Family Members Serving as Officers and Directors (NEW)
Beginning July 1, 2018, a corporate officer or member of a board of directors of a quasi-public or private corporation who is covered by health insurance or a health care service plan and who owns at least 1% of the issued and outstanding stock may elect to be excluded from coverage by executing a written waiver if his or her parent, grandparent, sibling, spouse or child owns at least 10% of the issued and outstanding stock.
If you qualify for exclusion under this new category, you must execute a written waiver if you wish to be excluded from coverage. If you provide us with an executed waiver, the exclusion will appear on your policy if the effective date is on or after July 1, 2018.
3. Officers/Directors Exclusion: Cooperative Corporations (NEW)
Beginning July 1, 2018, a corporate officer or member of a board of directors of a cooperative corporation organized pursuant to the Cooperative Corporation Law as set forth in Part 2 (commencing with Section 12200) of Division 3 of Title 1 of the Corporations Code who is covered by health or a health care service plan and also covered by a disability insurance policy that is comparable in scope and coverage, as determined by the Insurance Commissioner, to a workers’ compensation policy may elect to be excluded from coverage by executing a written waiver.
FEEL FREE TO CONTACT YOUR BARKLEY SERVICE TEAM TO DISCUSS THIS NEW LEGISLATION AND HOW YOU MAY BE IMPACTED.
