What do I need to do if my client buys a second business entity?
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Complete and submit a new application for the new business. We need to
have complete information about the nature of business, the payroll
amount, and ownership detail. Be sure to let us know if the new
business is combinable with or related to the existing policy we have.
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If your client's current business is experience-rated, be sure to let
them know the history of the new business could impact their experience
modification rate if the ownership makes the businesses combinable. NCCI
rules state that the experience of a business transfers to the new owners.
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Remind your client that each entity will stand alone for classification
and exemption purposes.