1. (1) In accordance with Section 34A-2-103, a client is responsible for securing workers' compensation coverage for a covered employee.

2. (2) Subject to the requirements of Section 34A-2-103, if a professional employer organization obtains or assists a client in obtaining workers' compensation insurance pursuant to a professional employer agreement:

   1. (a) the professional employer organization shall ensure that the client maintains and provides workers' compensation coverage for a covered employee in accordance with Subsection 34A-2-201(1) and rules of the Labor Commission, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;

   2. (b) the workers' compensation coverage may show the professional employer organization as the named insured through a master policy, if:

      1. (i) the client is shown as an insured by means of an endorsement for each individual client;
      2. (ii) the experience modification of a client is used; and
      3. (iii) the insurer files the endorsement with the Division of Industrial Accidents as directed by a rule of the Labor Commission, made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
   3. (c) at the termination of the professional employer agreement, if requested by the client, the insurer shall provide the client records regarding the loss experience related to workers' compensation insurance provided to a covered employee pursuant to the professional employer agreement; and
   4. (d) the insurer shall notify a client if the workers' compensation coverage for the client is terminated.
3. (3) In accordance with Section 34A-2-105, the exclusive remedy provisions of Section 34A-2-105 apply to both the client and the professional employer organization under a professional employer agreement regulated under this chapter.

4. (4) Notwithstanding the other provisions in this section, an insurer may choose whether to issue:

   1. (a) a policy for a client; or
   2. (b) a master policy with the client shown as an additional insured by means of an individual endorsement.

Amended by Chapter 363, 2017 General Session