Enforcing Affidavit of Exempt Status for Independent Contractors
KAIA's legal department has received several inquiries the past few months regarding the affidavit of exempt status. It's been brought to their attention that some carriers are refusing to accept the affidavits, which results in higher costs to Kansas consumers.
After a discussion with member agents regarding this issue, KAIA suggested language for a proposed regulation and the Kansas Insurance Department passed K.A.R. 40-3-60 in March 2018. The text of that regulation is as follows:
Workers' compensation; affidavit of exempt status. Each company that underwrites workers' compensation insurance in Kansas shall accept each executed affidavit of exempt status provided by each insured, pursuant to K.S.A. 2016 Supp. 44-5,127 and amendments thereto, unless there is sufficient evidence that the individual who signed the affidavit is required to be covered under the workers' compensation act.
Carriers in Kansas must accept the affidavits unless there is some type of evidence the affidavit is invalid.
The affidavit must be signed prior to any work being completed and then it must be updated annually thereafter.
If you have any issues with carriers not recognizing the affidavits, please reach out to Legal Services and/or the Kansas Insurance Department.
Please remember this regulation only applies to work in Kansas and does not extend to workers' compensation in other states.