45th legislature - STATE OF NEW MEXICO - first session, 2001

REQUESTING THE DIRECTOR OF THE WORKERS' COMPENSATION ADMINISTRATION TO STUDY THE POTENTIAL EFFECTS OF WRAPAROUND POLICIES OF WORKERS' COMPENSATION INSURANCE.

WHEREAS, workers' compensation laws and programs have proved to be fair and equitable to both employers and employees as a method to allocate the costs of work-related injuries without finding fault; and

WHEREAS, some owners and prime contractors have begun to utilize "wraparound policies" of workers' compensation insurance, whereby, as a condition to submitting a bid or entering into a contract, the contractor and all subcontractors must agree to be covered by the owner's or prime contractor's policy; and

WHEREAS, broad use of wraparound policies may create the potential for uncertainty in determining the appropriate workers' compensation policy to cover some work-related injuries;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the director of the workers' compensation administration be requested to study the potential effects of the use of wraparound policies of workers' compensation insurance and report his findings and recommendations to the second session of the forty-fifty legislature; and

BE IT FURTHER RESOLVED that a copy of this memorial be transmitted to the director of the workers' compensation administration.