Changes (Clarification) to the Missouri Waiver of Subrogation Exception
The Missouri Department of Insurance approved NCCI Item Filing 01-MO-2017, revising – and clarifying - Missouri’s exception to Waiver of Right to Recover from Others (Subrogation) rule in the NCCI Basic Manual. Prior to this item filing, the exception stated the rule did not apply in Missouri. This was due to Missouri statute which holds the waiver of subrogation to be against public policy and void for employers in the construction industry. The statute applies to Missouri employers with multi-state exposures.
The filing, which became effective 7/1/2017 for new and renewal policies, amends the Missouri exception as follows:
“4. The endorsement does not apply to policies or exposure in Missouri where the employer is in the construction group of classifications. According to Section 287.150(6) of the Missouri statutes, a contractual provision purporting to waive subrogation rights is against public policy and void where one party to the contract is an employer in the construction group of code classifications. For policies or exposure in Missouri, the following must be included in the Schedule:
Any person or organization for which the employer has agreed by written contract, executed prior to loss, may execute a waiver of subrogation. However, for purposes of work performed by the employer in Missouri, this waiver of subrogation does not apply to any construction group of classifications as designated by the waiver of right to recover from others (subrogation) rule in our manual.
What does this mean to your Missouri employers with construction class codes? UBIC is revising, the Schedule on form WC 00 03 13 to include verbiage specifying that: for purposes of work performed in Missouri, this waiver of subrogation does not apply to employers assigned to classifications included in NCCI’s construction group of classifications.
Construction codes are identified in the Scopes® Manual by a bullet sign following the code (5645 •). If you have questions about this filing, or whether or not a code is considered a construction code by NCCI please give your underwriter a call!