§ 23:1168.3 — Grounds for default; forfeiture of security; records of claims

Louisiana § 23:1168.3

• Jurisdiction: Louisiana
• Title 23: Labor and Workers' Compensation

Text

§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.

Legislative History

Acts 2006, No. 49, §1, eff. May 16, 2006.