Senate Bill 1579, also known as the "Zero Estimated Exposure Policy Act," amends Tennessee's workers' compensation laws by introducing a new section that defines and regulates zero estimated exposure policies for construction services providers. A zero estimated exposure policy is an insurance policy that covers a construction services provider's liability under workers' compensation when the provider reports a total estimated exposure of zero. The bill mandates that construction services providers must notify all entities they contract with about their zero estimated exposure and provide a copy of the policy. These entities are required to maintain this notification and policy for three years, although homeowners contracting for single-family residences are exempt from this requirement.

Additionally, the bill requires insurers to obtain a signed statement from applicants for zero estimated exposure policies, attesting to the accuracy of their information, including the absence of employees and a zero estimated exposure. If the provider's situation changes during the policy period, they must notify their workers' compensation insurer within sixty days. The bill also adds a new subdivision to Tennessee Code Annotated, Section 50-6-421(b), which pertains specifically to construction services providers and their reported classification codes for zero estimated exposure policies. This act is set to take effect on July 1, 2027.

Statutes affected:
Introduced: 50-6-421(b), 50-6-421