Common Reasons Application(s) are Rejected

The Facility may attempt to resolve issues by phone or email in order to avoid rejecting the application. Your prompt attention is required in order to avoid having the application returned.

Paper applications are no longer accepted and will be returned via U.S. Mail. Coverage will not be bound.

An online application will be returned via the online system. The submitter will be allowed two business days to resubmit with the required corrections in order to preserve the original effective date.

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Compliance issues with prior Facility carrier

  • If the insured owes undisputed premium to any assigned risk carrier the application will be rejected, unless a valid payment arrangement has been made.
  • The audit of an expired or cancelled policy must be completed, or scheduled to be done, before new coverage can be placed.
  • If the insured has not complied with audit requirements of a prior Assigned Risk carrier the application will be rejected.
  • Payment of an estimated audit does not satisfy the requirement.

Current coverage with another carrier

  • A copy of the cancellation or lost policy release form is needed.

Officer titles not provided in Section III

  • Customary titles are President, Vice President, Secretary, Treasurer, CEO, CFO, COO, or Chairman of the Board.
  • Words such as "owner", "stockholder", "officer" are not acceptable officer titles.

Officer or LLC Member payroll not included

  • Active officers or members who are not excluded must have payroll included for premium computation.

Exclusion Forms missing or incomplete or not signed

  • Appropriate exclusion forms must accompany the application.
  • The Specific Person Exclusion form must include the title and written signature for each person being excluded.
  • Corporation: The Certified Board Resolution must also be completed and include written signature.
  • LLC: The Limited Liability Company Consent must also be completed and include written signature.

ERM-14 not submitted or incomplete

  • If there is more than one entity on the application.
  • If a name change has occurred.
  • If the business was purchased by the insured.
  • If the owner(s) own a majority interest in any other business.
  • Be sure the ERM includes effective dates of ownership shown and appropriate written signatures.

Client list not provided

  • Employee leasing firms, PEO’s and temporary contractors must furnish a client list.
  • Include a brief job description for each client.
  • If there is not a client contract yet, provide a potential list of clients.

Payroll verification is needed

  • If payroll levels on the application differ from the most recent audit or previous policy verification is required.
  • Provide social security form 941, tax form schedule C (both sides), current payroll schedule or MESC report.

Incorrect class code used

Employer's signature

  • Make sure the application is signed and dated by the employer and their title is provided.
  • Typed name is accepted for online application.
  • If the signer is not a corporate officer, partner, sole proprietor, member or manager of LLC, trustee or legal guardian supply the legal document assigning authority for signature.