The bill amends existing laws regarding the duties of self-insured employers and third-party administrators in the context of industrial insurance. Key changes include the criteria for withdrawing certification from self-insurers, which now includes a provision that allows for withdrawal if the self-insurer has been found to have violated the duty of good faith and fair dealing three times within a three-year period. The bill clarifies that errors or delays that are minor or inadvertent do not count as violations. Additionally, it removes specific references to "municipal" employers in certain sections, broadening the applicability of the law to all self-insured employers.
Furthermore, the bill establishes a new section that states it applies to all claims regardless of the date of injury, ensuring that the provisions are retroactive. It also sets an effective date for the new regulations to take effect on January 1, 2026. The amendments aim to enhance the accountability of self-insured employers and their third-party administrators in their dealings with workers, emphasizing the importance of fair treatment and compliance with established regulations.
Statutes affected: Original Bill: 51.14.080, 51.14.180