Cancellation

1. What should I do if I receive a Notice of Cancellation?
2. Am I still eligible to sign up for E-payroll and E-payments to send State Fund outstanding materials prior to the cancellation effective date?
3. Why are my certificate holders receiving cancellation notices?
4. Why are you cancelling my policy if I do not have any employees?
5. I want to cancel my policy because I have no employees or I have found insurance elsewhere. What do I do?
6. Can I backdate my cancellation?
7. What are the different types of cancellations?
8. When I sent in my payroll report, I wrote on the form I wanted to cancel my policy. Why is it still not cancelled?
9. If I don’t send in a cancellation request, will the policy just cancel on its own?

1. What should I do if I receive a Notice of Cancellation?

   If you wish to stop the cancellation and avoid a lapse in coverage, State Fund must receive all overdue premium payments and payroll reports prior to the cancellation effective date. You should go to State Fund Online to determine and submit the outstanding items on your policy or call the phone number listed for further assistance as instructed on the Notice of Cancellation.

   Sample Cancellation Notice

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2. Am I still eligible to sign up for E-payroll and E-payments to send State Fund outstanding materials prior to the cancellation effective date?

   Yes, you may still sign up for E-payroll and E-payments on State Fund Online.

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3. Why are my certificate holders receiving cancellation notices?

   Once your policy goes into cancellation, we are required to notify your certificate holders that your workers' compensation coverage may/will be cancelled. For example, if you have 30 days notice endorsed on your policy, then we must notify the certificate holders 30 days before we cancel your policy for non-payment.

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4. Why are you cancelling my policy if I do not have any employees?

   If you have no employees, you still need to fill out the payroll report. Indicate that you do not have any employees (none), sign, date and return the report to State Fund. We cannot assume that a policyholder has no employees.

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5. I want to cancel my policy because I have no employees or I have found insurance elsewhere. What do I do?

   The business/policy owner needs to submit your request to cancel your policy in writing, either on the Policy Cancellation Request form (hard copies available from the Customer Service Center) or in a written letter with your signature, including the desired date of cancellation and the reason. If you found a new workers’ compensation insurance provider, you must supply State Fund a copy of your new policy’s declaration page to verify you have coverage.

   If State Fund-issued certificates of insurance are in effect, your written cancellation request date must correspond to the certificate advance notice. For example, if you have 30 days notice endorsed on your policy, then your requested cancellation date must be at least 30 days in advance so we can notify the certificate holders.

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6. Can I backdate my cancellation?

   State Fund does not backdate cancellations. Therefore, it is imperative that you provide us advance notice that you wish to cancel your policy on the anniversary date to avoid having to pay the minimum policy premium for the current policy year.

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7. What are the different types of cancellations?
   • Cancel – No Employees (CS)
     When you cancel your policy because you do not have any employees and no longer need your policy. [Cancellation on your anniversary date or any time during your policy period.]
   • Cancel – Business Closed (CD)
     When you cancel your policy because you have closed your business and no longer need your policy. [Cancellation on your anniversary date or any time during your policy period.]
   • Cancel – Insured Elsewhere (CE)
     When you cancel your policy because you obtained coverage with a different provider. [Cancellation on your anniversary date.]
   • Cancel – Insured Elsewhere Midterm (CB)
     When you cancel your policy midterm because you obtained coverage with another provider, please keep in mind you will be subject to a mid-term cancellation fee (as per your contract with State Fund). The final premium will be based on the time the policy was in force, and increased by any short rate cancellation table and procedure in our manuals. Please contact our Customer Service Center at (888) 782-8338 for more information.

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8. When I sent in my payroll report, I wrote on the form I wanted to cancel my policy. Why is it still not cancelled?

   To cancel your policy, please send in a written request separately from your payroll report. A cancellation request letter is available here. Please be sure to fill it out completely, sign and date it before sending.

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9. If I don’t send in a cancellation request, will the policy just cancel on its own?

   If you wish to cancel your policy, you must submit your request in writing, with the requested cancellation date and reason. If State Fund does not receive a written request, the policy will cancel for non-reporting of payroll or for non-payment. If you found a new workers’ compensation insurance provider, you must supply State Fund a copy of your new policy’s declaration page to verify you have coverage. State Fund will establish your cancellation date based upon any outstanding documents.

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Note: State Compensation Insurance Fund is not a branch of the State of California.