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 mandated by the director, as indicated by the new language that replaces previous provisions related to violations of good faith and fair dealing. Specifically, the bill introduces a requirement for the director to impose corrective actions if a self-insurer violates their duty of good faith and fair dealing two or more times within a three-year period, which may include a probationary status and compliance audits.

Additionally, the bill clarifies that errors or delays that are minor or inadvertent do not constitute violations of good faith and fair dealing. It also establishes that the new provisions apply to all claims, regardless of the date of injury, and sets an effective date for the act as January 1, 2026. The amendments aim to enhance accountability and ensure fair treatment of workers in the self-insured sector.

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