RS 1168.3 - Grounds for default; forfeiture of security; records of claims
A. For purposes of this Section, "default" shall mean whenever a self-insured employer:
(1) Fails to pay benefits owed under this Chapter to an injured worker for undisputed claims and the employer is in bankruptcy or a state court receivership or liquidation;
(2) Fails to renew its irrevocable letter of credit; or
(3) Fails to substitute acceptable securities for workers' compensation benefits within thirty days prior to the expiration of the current security.
B. For purposes of R.S. 23:1168.3 through 1168.12, the following terms shall have the following meanings:
(1) "Administer" or "administration" shall mean the review and determination of the monetary value of a claim.
(2) "Claim" shall mean a claim for workers' compensation benefits by an employee of the self-insured employer which the employer had at the time of default accepted as compensable and for which the employer was paying benefits.
C.(1) If for any reason there is a default by the self-insured employer in the payment of claims, the security posted with the assistant secretary shall be forfeited, and in the case of a surety bond, the assistant secretary may institute suit on such bond. All proceeds shall be retained by the assistant secretary for payment of such claims as may be entitled to receive compensation from said employer. The assistant secretary may pay these funds on a periodic basis. In the event that the amount of the bond is insufficient to meet all of the outstanding claims, he may allocate them to particular claimants pro rata, in accordance with rules promulgated by the assistant secretary.
(2) In the event an employer operating as a self-insurer pursuant to R.S. 23:1168.1 defaults on his workers' compensation obligations, the office shall demand that the excess insurer deposit a separate surety bond or other security equal to the amount of security attributable to the defaulting employer in the most recent calculation of the single security on deposit with the office. If the separate surety bond or other security is not deposited with the office within ten business days of demand, the entire single security on deposit shall be forfeited until the additional security is deposited. Upon depositing the separate security required by this Paragraph, the excess insurer shall be entitled to reduce the existing single security on deposit by the amount of the separate security.
D. Within thirty days of receiving written notice from the office, the employer whose security was forfeited shall provide the office with copies of any workers' compensation, medical or employment files requested by the office or summary information related to those files necessary to administer the claims for benefits under this Chapter.
Acts 2006, No. 49, §1, eff. May 16, 2006.