(a) Each employer who is required to purchase and maintain workers compensation insurance or who elects to purchase workers compensation insurance shall pay a premium to a private carrier. Each carrier shall notify its policyholders of the mandated premium payment methodology and under what circumstances a policyholder will be found to be in policy default.
(b) An employer who is required to purchase and maintain workers compensation insurance but fails to do so or otherwise enters policy default shall be deprived of the benefits and protection afforded by this chapter, including 23-2-6 of this code, and the employer is liable as provided in 23-2-8 of this code: The policy defaulted employers liability under these sections is retroactive to the day the policy default occurs: The private carrier shall notify the policy defaulted employer of the method by which the employer may be reinstated with the private carrier.
(c) In addition to any other liabilities provided in this section, the Insurance Commissioner may impose an administrative fine of not more than $10,000 against an employer if the employer fails to provide mandatory coverage required by this chapter.
(d) Every agency shall, upon notification of employer default by the Insurance Commissioner, immediately begin the process to revoke or terminate any contract, license, permit, certificate, or other authority to conduct a trade, profession, or business in this state and shall refuse to issue, grant, or renew any such contract, license, permit, certificate, or authority.
(1) The term “employer default” means having an outstanding balance or liability to the Old Fund or to the Uninsured Employers Fund or being in policy default, as defined in 23-2C-2 of this code, or failure to maintain mandatory workers compensation coverage. An employer is not in default if it has entered into a repayment agreement with the Insurance Commissioner and remains in compliance with the obligations under the repayment agreement.