RULE IX – SPECIAL CONDITIONS OR OPERATIONS AFFECTING COVERAGE AND PREMIUM

1. Definition
   Executive Officers of a corporation are the President, Vice President, Secretary, Treasurer or any other officer appointed or elected in accordance with the charter or by-laws of a corporation.
2. Law And Status
   a. Executive Officers of a corporation and members of a limited liability company, which corporation or limited liability company is not licensed under Title 30, Chapter 25 of the Delaware Code or shown to be conducting business in a manner in which they should be so licensed, are covered under the Delaware Workers’ Compensation Law. However, up to eight (8) executive officers who are stockholders of the corporation (except construction contractors – see below) or as many as eight (8) individuals who are members of a limited liability company, when executing a written agreement between the corporation and such executive officers or between the limited liability company and such members, may elect not to be subject to the law. To exclude such officers or limited liability company members, attach the Partners, Officers and Others Exclusion Endorsement WC 00 03 08.Note: As a general rule, executive officers may be excluded only on the effective date of the policy. Any exceptions to this general rule must be approved in writing by the carrier issuing the policy.b. Construction Contractors: Executive officers of a corporation and members of a limited liability company, which corporation or limited liability company is licensed under Title 30, Chapter 25 of the Delaware Code or shown to be conducting business in a manner in which they should be so licensed, are covered under the Delaware Workers’ Compensation Law. However, up to four (4) executive officers who are stockholders of the corporation or as many as eight (8) individuals who are members of a limited liability company, when executing a written agreement between the corporation and such executive officers or between the limited liability company and such members, may elect not to be subject to the law. To exclude such officers or limited liability company members, attach the Partners, Officers and Others Exclusion Endorsement WC 00 0308.Note: As a general rule, executive officers and individual members of a Limited Liability Company may be excluded only on the effective date of the policy. Any exceptions to this general rule must be approved in writing by the carrier issuing the policy.When executive officers are covered under the law they have the same status as employees under the policy.
3. Executive Officer – MULTIPLE CORPORATE ENTERPRISES
   An executive officer may either receive a salary from only one or from several corporations insured under one policy. In other instances several policies may be issued to cover several corporations and an executive officer may receive a salary from each of these corporations. The following procedure shall apply in these instances:Where it is permissible to include more than one corporation on a single policy and such corporations are insured by a single carrier whether under one or more policies, the several corporations shall be considered as a unit with respect to the application of the Executive Officers Rule. In all other cases the rule shall apply on a policy basis.
   
   
4.  Executive Officers Remuneration – TREATMENT OF:
   The remuneration of executive officers shall be treated in accordance with the following procedures:1. The remuneration of an executive officer shall not be included with the payroll of the employer for premium computation purposes, provided:
   (a) The executive officer is elected for the value of his or her name or because of stockholdings, has no duties and does not come on the premises, except perhaps to attend directors’ meetings.
   (b) The executive officer ceases to perform any duties and does not come on the premises, except perhaps to attend directors’ meetings.2. The remuneration of an executive officer shall be included with the payroll of the employer for premium computation purposes, subject to the minimum and maximum provisions of the Basic Manual, provided:
   (a) The executive officer ceases to perform any duties, but frequently visits the premises of the employer.
   (b) The officer frequently visits the premises of the employer for business conferences, directors’ meetings or similar duties, even if the officer is an employee or officer of another employer in the operations of which he/she takes an active interest.
   (c) The officer receives no salary; however, a regular salary is credited to him or her on thebooks. In this instance, the amount credited must be included in payroll.
   (d) The officer receives no salary or the audit records fail to disclose the salary. In this instance, the amount to be included in the payroll is the applicable corporate officer minimum.
5. Premium Determination
   Premium for executive officers, other than elected officers of Delaware or its political subdivisions, shall be based on their total payroll, subject to the following:
   a. The requirements of Rule V-E.
   b. The minimum individual payroll for an executive officer is $1,328 per week.
   c. The maximum individual payroll for an executive officer is $5,300 per week.
   d. These limitations apply to the weekly payroll of each executive officer for the number of weeks the officer was employed during the policy period.
   e. A part of a week shall be considered a full week in determining the weekly payroll.
6. Assignment of Payroll
   Payroll assignment shall be made in the same manner as for any employee. No executive officer’s payroll may be assigned to the standard exception classification unless that officer’s duties fulfill the definition ofeither Code 951 Salesperson – Outside, Code 953, Clerical Office Employees, or Code 822, Telecommuting Clerical Employees. See Rule IV.
   
   
7. Flight Duties
   Payroll of an executive officer who is a pilot or member of the lying crew of an aircraft used in the insured’s business shall be assigned as follows:a. For each week during which the executive officer did not perform flight duties, assign the officer’s payroll as provided in Rule IX –A. 4.
   b.  For each week during which the executive officer performed flight duties, assign the officer’s payroll for that week to Code 7421. If an executive officer’s non-flying duties in such a week are subject to a higher-valued – classification, that insuring carrier’s or the residual market’s higher valued classification shall be assigned in that week.Rules 5. a. and b. apply on the basis of the pilot’s log book required under Federal regulations or other verifiable records.If Code 7421, applies and verifiable records are not maintained to indicate those weeks during which flying is performed by executive officers, their payroll shall be assigned to the insuring carrier’s or the residual market’s highest-valued classification which applies to any of their operations.
8. Professional Employer Organization (PEO) – Corporate and Limited Liability Clients
   The full remuneration of an executive officer(s) or owner member(s) of a Limited Liability Company (LLC)shall be included in the payroll of the PEO without payroll limitation. Executive officers or member owners of an LLC may elect to not be subject to the Delaware Workers Compensation Law. Refer to Rule 2. – Law and Status of this section for officer exclusion procedure. The corporate entity or LLC may also obtain a separate policy of insurance for their officer(s) or LLC member owners.
9. Executive Officers of Unincorporated Associations
   Executive officers of an unincorporated association are the President, Vice President, Secretary, Treasurer or any other officer appointed or elected in accordance with the charter or by-laws of an unincorporated association. Executive Officers of an unincorporated association may not elect to be excluded under the law. Premium for an executive officer of an unincorporated association shall be based on their total payroll, subject to the minimum and maximums established for corporate executive officers.

1. Law & Status
   a. Sole proprietors or partners are not covered under Delaware Law.
   b. Sole proprietors or partners may elect to be covered in the State of Delaware. They then have the same status as employees under the policy.
   c. Immediate family members of sole proprietors or partners are covered under Delaware Law. Immediate family is defined as a parent, spouse, child or sibling of a sole proprietor or partner.
2. Coverage
   a. To provide coverage for a sole proprietor or partner, attach the Sole Proprietors, Partners, Officers and Others Coverage Endorsement, WC 00 03 10.b. To exclude coverage for Immediate Family members, attach the Partners, Officers and Others Exclusion Endorsement, WC 00 03 08.
3. Premium Determination
   a. Premium for sole proprietors, partners or members of their immediate family shall be based on their total payroll.
   b. Rules to set payroll for sole proprietors, partners, or LLC members are the same as for executive officers. (See Rule IX A. 5. for details.)
   c. If payroll information is not available use the corporate officer minimum in effect as of the inception date of the policy. Profit or loss amounts attributed to the individual’s interest in the business are not considered payroll.

1. No contractor or subcontractor shall receive compensation under the Delaware Workers Compensation Law, but shall be deemed to be an employer and all rights of compensation of the employees of any such contractor or subcontractor shall be against their employer and not against any other employer.
2. Lessees transporting passengers for hire in motor vehicles leased pursuant to written leases shall not receive compensation under the Delaware Workers Compensation Law but shall be deemed to be employers.
3. “Independent contractor” shall mean any person not excluded from mandatory coverage under provisions of Delaware Workers Compensation Law, Title 19 §2311, who performs work or provides services for a contractor, subcontractor or other “contracting entity” in return for remuneration and/or other valuable considerations but who is not an employee of the contractor, subcontractor or other “contracting entity” or any other person or entity with respect to the work performed or the services provided. “Contracting entity” shall mean any commercial entity that obtains work or services from a person not excluded from mandatory coverage under provisions of this law and who is not an employee of the “contracting entity” or any other commercial entity with respect to the work performed or services provided.Important Note
   Partners and sole proprietors, when working in an independent contractor role, shall be subject to the same requirements as outlined above and may not rely upon Title 19 §2308 to elect not to be subject to the law.
   
   Coverage
   Independent contractors shall have an option to purchase coverage to satisfy this requirement or alternatively shall be insured by the contractor, general contractor, subcontractor or other contracting entity for which they perform work or provide services.Up to four (4) executive officers who are stockholders of a corporation and up to four (4) individuals who are members of a limited liability company, which corporation or limited liability company is licensed under Title30, Chapter 25 of the Delaware Code or shown to be conducting business in a manner in which they should be so licensed, may be exempted from Title 19, Section 2311 (a) (4). Refer to Title 19 §2308 of the Delaware Code for more detail.

   Remuneration
   Actual remuneration of the independent contractor will be used to determine premium subject to the executive officer minimum and maximum payrolls approved by the Department of Insurance. (Refer to Section 1, Rule IX, A. 3. for more detail.)

   (a) The general contractor, subcontractor or other contracting entity shall furnish satisfactory evidence that the independent contractor had workers’ compensation insurance in force during the time within which the work was performed for the general contractor, subcontractor or other contracting entity. Foreach independent contractor for which such evidence is not furnished, additional premium shall be charged to the policy which insured the general contractor, subcontractor or other contracting entity as follows:

   i. The general contractor, subcontractor or other contracting entity shall provide a complete payroll record of each uninsured independent contractor. Premium on such payroll shall be based on the classification(s) which would have applied if the independent contractor had been an employee of the general contractor, subcontractor or other contracting entity.

   ii. If the general contractor, subcontractor or other contracting entity does not supply the payroll records of its independent contractor(s), the full subcontract price of the work performed during the policy period by the independent contractor(s) shall be established as the payroll of the independent contractor(s). The additional premium shall be charged on that amount as payroll.

   Exception to (a) ii:

   If investigation on a specific job discloses that a definite amount of the independent contractor’s(s’)price represents payroll, such amount shall be the payroll for the additional premium computation. In contracts for: (1) for mobile equipment with operators (such as but not limited to: earth movers, graders, bulldozers, or log skidders), the payroll shall not be less than 33 percent of the independent contractor’s(s’) price; (2) for labor and material, the payroll shall not be less than 50 percent of the independent contractor’s(s’) price; (3) for labor only, the payroll shall be established as not less than90 percent of the independent contractor’s(s’) price.

   iii. f an experience modification has been established for the general contractor, subcontractor or other contracting entity, such experience modification shall be applied to the premium developed for the uninsured independent contractor.

   iv. Any contracting entity shall obtain from an independent contractor or subcontractor and retain for three (3) years from the date of the contract, the following: a notice of exemption of executive officers or limited liability company members and/or a certification of workers compensation insurance in force. If the contracting entity should fail to do so, the contracting entity shall not be deemed the employer of any independent contractor or subcontractor or their employees but shall be deemed to insure any workers’ compensation claims arising from the transaction.

   v. In all other types of commerce, the determination of employee or independent contractor status shall remain as before the adoption of Title 19 §2311 Subsection (a), and Title 19 §2308 and the other provisions defining employees and persons not covered by Title 19, Chapter 23 of the Delaware Code shall apply.

Ex-medical coverage is prohibited in the State of Delaware.

1. Employees who qualify for payroll limitation include but are not limited to all players, coaches, managers or sports officials and include all players on salary list of the employer.
2. The entire remuneration of each player, coach, manager or sports official should be included in computing premium, subject to a maximum of $60,000 per policy year.
3. When a player, coach or manager works for two or more teams in the same sport during the policy year, the maximum shall be pro-rated.
4. The remuneration of an individual player, coach, manager or sports official is subject to a minimum of $500 per policy year, including board and lodging. For more details refer to the Classification and Rating Values Section.

1. The Effective Date Delaware Workplace Safety Program effective February 1, 1989. Revised December 1, 2024.
2. Eligibility Employers are eligible for the Workplace Safety Program if they currently qualify for the uniform experience rating plan or who otherwise qualify for the program pursuant to parameters set by the Insurance Commissioner by regulation. The Delaware Compensation Rating Bureau, or another qualified entity designated by the Department of Insurance, shall test each employer to determine eligibility.
3.  Employer NotificationEmployers meeting the eligibility requirement will be notified by the Delaware Department of Insurance seven months in advance of renewal date. This notification will inform the employer of the premium credit they are eligible for if attested safe, together with the schedule of inspection costs.
4. InspectionThe cost of each Department of Insurance safety inspection will be borne by the employer and will start at $150 per location. Each work location must pass inspection for the employer to be eligible for premium credit under the Workplace Safety Program. Inspection fees for large and/or complex employers may be established by the Department of Insurance.
5. Employer ActionOnce the employer receives their notification of eligibility, the employer must decide to participate in theWorkplace Safety Program. This decision must be made no later than five months before their policyrenewal. The employer must contact the Delaware Department of Insurance and request an inspection. Inspections will be made by a representative from one of the independent safety expert companies contracted by the Delaware Department of Insurance.
6. Delaware Department of Insurance ActionThe Department of Insurance will notify the inspector of the employer’s request. The inspector will then contact the employer to set up the first of two inspections. A second unannounced inspection will be made at some later date to confirm initial certifications of safety in the workplace. Failure to pass this on-scheduled inspection will result in withdrawal of the safety credit.
7. Qualified Employer The DCRB will be informed when an employer passes the inspection. The DCRB will then record on the experience rating calculation sheet the credit percentage to apply to the renewal policy. Code 9880is to be used in policy issuance and statistical reporting to record the Workplace Safety Program premium credit, which is to be applied after experience modification and after deviation or schedule rating adjustments but before calculating premium discount and before adding of expense constant.For Example:
   

   975	Restaurant	$350,000	$4.39	$15,365
   953	Clerical	80,000	.54	432
   	Sub-Total			15,797
   9898	Experience Modification		.95	790	Credit
   	Sub-Total			15,007
   9887	Schedule Credit 5%			750	Credit
   	Sub-Total			14,257
   9880	Safety Program Credit 19%			2,709	Credit
   	Sub-Total			11,548
   0063	Premium Discount
   	(if applicable)
   0900	Expense Constant
   	(if applicable)
   9999	Estimated Annual Premium			11,548

8.  Safety Credit Percentages Safety credits will be granted according to the following formula:20% x {1.0000 – C}Where “C” is the credibility of the qualified employer in the uniform Experience Rating Plan for the policy period expiring immediately prior to the application of the safety credit. — Safety credit factors will be rounded to the nearest whole percent.
9. DCRB Rating Values A Delaware Workplace Safety Program Correction Factor shall be included in loss costs and residual market rates. This factor shall be designed to make the Workplace Safety Program revenue neutral in the aggregate.
10. AppealsThe DCRB’s determination of the percentage credit for an individual risk eligible for the Delaware Workplace Safety Program may be appealed pursuant to Rule XVI, APPEALS FROM APPLICATIONOF THE RATING SYSTEM PROCEDURE, Section 1 of this Manual.

The payroll of a trucker shall be assigned to a state in which it has a terminal or base of operations. These guidelines are not applicable to dispatching or broker operations.

Example:

A driver/employee resides in State A. His employer/trucker base of operations is in State B. If the driver/employee regularly travels to the terminal or base of operations in State B to load or unload freight or perform other regular work functions, i.e. mechanic, the driver/employee payroll shall be assigned to State B.

When the trucker does not operate from a terminal or base of operation, the state to which the payroll is assigned shall be determined in accordance with the following procedures.

If it can be established that the trucker does a significant portion of its business in a single state, the payrolls, other than those payrolls which can be attributed to specific work functions in a specific state, should be assigned to that state. Factors such as driving time, number of pickups and deliveries, revenue and tonnage, should be considered in determining the state of payroll assignment. If a state payroll assignment cannot be made based on these factors, then the truckers payroll shall be assigned tohis state of residence.

For the purposes of the guidelines the following definitions shall apply:

TRUCKER – A trucker is the holder of operating authority from a government agency.

TERMINAL OR BASE OF OPERATIONS – A permanent location owned, leased or used by the trucker at which loading, unloading and other related non-clerical work functions such as maintenance and transfers are performed and from which the driver/employee is assigned to work from on a regular basis.

STATE OF RESIDENCE – The state in which the trucker resides as evidenced by the location used for the filing of federal income taxes.

REGULAR – A pattern of 40 hours per week or any other pattern that appears on a continuing basis.

1. Program Description
   The Delaware Construction Classification Premium Adjustment Program (DCCPAP) provides for a premium credit for up to one year for a policy which contains one or more construction classifications. The basis for determining the credit is the total payroll (including overtime premium pay) and hours worked for each construction classification as reported to taxing authorities. The applicable report periods vary according to the policy effective date of each policy, as set forth below.
   Policy                                                                                 Reporting 
   Effective                                                                            Period For
   Dates                                                                                  Qualifying Wages 
   June 1, 2023 and later                                                         Third Quater of 2022

   If the insured did not engage in operations for the complete quarter, then the last complete quarter prior to policy year inception shall be used or, if there was no complete quarter of operations prior to the policy inception, then the first complete quarter after policy inception shall be used. A credit maybe determined for each construction classification by dividing the total payroll, including overtime premium pay, by the number of hours worked to arrive at the average hourly wage for the classification. In the absence of specific records for salaried employees, it will be assumed each such individual worked forty (40) hours per week. The credit for average hourly wage is listed below:

   DCCPAP Wage Table
   Effective June 1, 2024 and later

   Average Hourly	Wage	Credit From Manual Premium	Average Hourly	Wage	Credit From Manual Premium
   $25.44	or less	0%	$30.80	$31.39	15%
   $25.45	$25.89	5%	$31.40	$32.04	16%
   $25.90	$26.39	6%	$32.05	$32.69	17%
   $26.40	$26.89	7%	$32.70	$33.34	18%
   $26.90	$27.39	*%	$33.35	$34.04	19%
   $27.40	$27.94	9%	$34.05	$34.74	20%
   $27.95	$28.49	10%	$34.75	$34.49	21%
   $28.50	$29.04	11%	$35.50	$36.24	22%
   $29.05	$29.59	12%	$36.25	$36.99	23%
   $29.60	$30.19	13%	$37,00	$37.79	24%
   $30.20	#30.79	14%	over	$37.79	25%

   Delaware Construction Classification Premium Adjustment Program 
   Effective June 1, 2025 and later

    

   Average Hourly Wage		DCCPAP Credit
   $25.54 or less		0%
   $25.55 – $25.99		5%
   $26.00 – $26.49		6%
   $26.50 – $26.99		7%
   $27.00 – $27.49		8%
   $27.50 – $27.99		9%
   $28.00 – $28.54		10%
   $28.55 – $29.09		11%
   $29.10 – $29.64		12%
   $29.65 – $30.19		13%
   $30.20 – $30.79		14%
   $30.80 – $31.39		15%
   $31.40 – $31.99		16%
   $32.00 – $32.64		17%
   $32.65 – $33.29		18%
   $33.30 – $33.99		19%
   $34.00 – $34.69		20%
   $34.70 – $35.39		21%
   $35.40 – $36.14		22%
   $36.15 – $36.89		23%
   $36.90 – $37.64		24%
   Over $37.64		25%

   The total construction classification credit amount, in dollars, must be calculated and then divided by the total policy premium at DCRB rating values – including construction and non-construction classifications. The result would be the percentage credit which is to be applied to the policy. When calculating the total policy credit the percentage shall be rounded to the nearest whole number with .5being rounded upward (as an example, 4.4 rounded to 4% and 4.5 rounded to 5%).

   The insured shall submit the required payroll and hours worked information to the Delaware Compensation Rating Bureau, Inc. for calculation of any applicable credit. The carrier shall, upon audit, verify the information that was submitted by the insured and used in the calculation of the credit. If the carrier discovers an error in the original request for policy credit, the revised information must be submitted to the Delaware Compensation Rating Bureau, Inc. for recalculation. If the insured does not furnish records to verify the payrolls and hours worked originally submitted and used in the calculation of the credit, there shall be no credit applied to the policy.

   The credit authorized by the Delaware Compensation Rating Bureau, Inc. shall appear on Item 4 of the policy. If the credit applicable to the policy is not available at the time of policy issuance, the carrier shall endorse the policy to provide the appropriate credit information once a qualifying application has been processed and the DCRB has notified the carrier of the credit determined on the basis of such application.

   Report Delaware Construction Class Premium Credit on the information page and unit statistical report under Code 9046.

   Carriers are required to use the approved form to notify all their insureds, who have one or more construction classifications on their policy, that they may be eligible for a premium adjustment credit.

2. “Construction classifications” are 600 or 2600 series classification codes which are direct employment and temporary staffing construction classifications, respectively. For example, direct employment classification Code 615 and associated temporary employment classification Code2615 are both DCCPAP eligible classifications.
3. The DCRB will inform the carrier and employer of the credit percentage. The DCRB will then record on the experience rating sheet (when applicable) the credit percentage to apply to the policy. Code 9046is to be used in policy issuance and statistical reporting to record the construction premium credit, which is to be applied after the experience modification and after the deviation or schedule rating adjustments, but before calculating the premium discount and before adding the expense constant.
   1. B – The DCRB’s determination of an individual risk’s eligibility for and/or the percentage of credit under the Delaware Construction Classification Premium Adjustment Program may be appealed pursuant to Rule XVI, APPEALS FROM APPLICATION OF THE RATING SYSTEM PROCEDURE, Section 1 of this Manual.DCRB FILE NO_____________Delaware Workers Compensation
      Premium Credit ApplicationNAME ON INSURANCE POLICY _________________________________________________________INSURANCE COMPANY (not agent) ______________________________________________________Policy No. _____________________________          EFF DATE____________________B Unless Code(s), total wages paid as reported to taxing authorities, total hours worked, and calendar quarter reported are indicated and application is signed, it cannot be processed. Must include nonconstruction class code payrolls. Corporate Officers should be included in the appropriate classification. Do not include corporate officers who have elected to be excluded from the Workers Compensation Act. Contact your agent and/or insurance company if assistance is desired.CLASSIFICATION DESCRIPTION           DELAWARE           TOTAL                                       TOTAL HOURS
      WC CLASS              DELAWARE WAGES             WORKED
      CODE                      PAID THIS                                THIS QUARTER
      QUARTER                                 (including OT)Example: Carpentry___________          652______            $8,000 ___________         460________

      Example: Office _____________           953                             $3000                                        520

      ________________________                                                                                            

      ________________________                                                                                                      
      
      _________________________          _________            _________________        ___________

      _________________________          _________            _________________         ___________

      _________________________          _________            _________________          ___________

      The foregoing is based on actual wages and hours worked, as reflected in our payroll records, for the complete calendar quarter ending _________________

      Signature ___________________________                                        Title ______________________

      Telephone Number ____________________                                          Date ______________________

      Address _________________    City ______________   State ________________ Zip Code _______

      Email Address _______________________________

1. For policies where the carrier waives subrogation rights, the Waiver Our Right to Recover From Others endorsement (WC 00 03 13) must be attached to the policy.
2. The premium for the waiver endorsement is based on a pricing value and charged determined by the carrier.
3. Voluntary market carriers must file the pricing value and premium charge with the Delaware Department of Insurance. The premium charge associated with the waiver shall be assigned to Code0930. For policies where a flat charge has been levied for a waiver of subrogation rights, the amountshall be assigned to Code 9115. Code 9115 – Flat Charge Waiver of Subrogation is not included in the Total Standard Premium.
4. Residual market carriers must use the values established by the DCRB in the annual residual market rate filing.a. Blanket waivers are not permitted in the residual market.b. The additional premium charge for residual market (assigned risk) policies is 5% of the total manual premium developed in conjunction with the work for which the waiver is provided, subject toa $250 minimum premium charge per waiver.c. The residual market premium charge associated with the waiver shall be assigned to Code 0930.