The rules for eliminating dual coverage described in RS 02002.510 through RS 02002.535 cover the majority of situations where both the United States and Iceland would otherwise cover and tax a worker in the absence of an agreement. However, sometimes the application of the normal agreement rules would yield anomalous or inequitable results. For this reason, the agreement includes a provision that permits the authorities in both countries to grant exceptions to the normal coverage rules of the agreement if both sides agree.

The intent of the exception provision is not to provide workers or employers with the freedom to elect coverage in conflict with normal agreement rules. The purpose of the special exception provision is to allow a worker to continue coverage in the country where he or she normally works and has coverage, in order to ensure that he or she will meet eligibility requirements for retirement or disability benefits.

An employee, employer or self-employed person may request a special exception to the normal coverage rules of the agreement. Both countries must agree to the special exception and agree on the country of coverage. If either country does not agree with a proposed exception, the applicable coverage rule of the agreement determines the worker's coverage.

A worker or employer who wishes to apply for a special exception writes to the designated agency in the country where the worker wishes to remain covered. The letter should:

• •

  give all the information necessary to issue a certificate of coverage under the U.S.-Icelandic agreement (see RS 02002.550); and

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  explain why a special exception should be granted.

Individuals wishing to request an exception granting U.S. coverage should write to the following address:

Social Security Administration
Division of Training and Program Support
International Support Branch
P.O. Box 17741
Baltimore, Maryland 21235-7741
USA
Fax: (410) 966-1861
Request online: https://opts.ssa.gov

Individuals wishing to request an exception granting Icelandic coverage should write to the address below:

Tryggingastofnun (Social Insurance Administration)
Hlíðasmári 11
201 Kópavogur
Iceland

E-mail: tr@tr.is

Upon receipt of a request for a special exception, the agency that receives the request will consider it in collaboration with the other country's agency. If both agencies approve the request for a special exception, the agency that receives the request will issue a certificate of coverage. The certificate of coverage will serve as proof of exemption from coverage and taxes in the other country.