The bill amends existing laws regarding the responsibilities of self-insured employers and third-party administrators in the context of industrial insurance. Key changes include the withdrawal of certification for self-insurers if they fail to comply with corrective actions or if decertification is mandated under specific provisions. The bill also clarifies that self-insurers must adhere to a duty of good faith and fair dealing towards workers, with penalties for violations that may include corrective actions and probationary status. Notably, the bill removes previous definitions related to municipal and private sector firefighter employers, broadening the scope of the duty of good faith to all self-insured employers.

Additionally, the bill establishes a framework for the department to investigate violations and impose penalties, including a structured process for corrective actions if a self-insurer is found to have violated good faith obligations multiple times within a specified period. It emphasizes that errors or delays that are minor or inadvertent do not constitute violations. The act is set to take effect on January 1, 2026, and applies to all claims regardless of the date of injury.

Statutes affected:
Original Bill: 51.14.080, 51.14.180
Bill as Passed Legislature: 51.14.080, 51.14.180
Session Law: 51.14.080, 51.14.180