Rules Governing Settlement of Workers' Compensation Claims
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Notwithstanding any other provision of this part or of title 56 to the contrary, in order to assure that injured employees are treated fairly and to assure that claims are handled in an appropriate and uniform manner, the administrator of the bureau of workers' compensation shall set standards by rule governing the adjustment and settlement of workers' compensation claims by insurance carriers, self-insured employers, and any entity acting on behalf of an insurance carrier or self-insured employer in the resolution of claims brought pursuant to this title. The standards may include, but are not limited to, standards governing contact with an employee after notice of injury has been given, the processing of claims and procedures for making an offer of settlement.
The administrator shall promulgate rules and regulations to effectuate the purposes of this section. The rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
The administrator may enforce the standards described in this section, and any rules promulgated pursuant to this section, through assessment of civil penalties pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, against any entity employing individuals who adjust workers' compensation claims under this title. Such penalties may be in an amount not less than fifty dollars ($50.00) nor more than five thousand dollars ($5,000) per violation. Each separate act shall constitute a separate violation and may subject the entity to assessment of additional civil penalties.
The administrator may also notify:
The department of commerce and insurance of any penalties assessed by the bureau pursuant to this section; and
The principal corporate office of any insurer of any violations of the standards or rules described in this section.