23-966. Failure of employer or insurance
carrier to pay claim or comply with commission order; reimbursement
of funds
A. If an insurance carrier or self-insured employer or other employer authorized by
the commission to process or pay claims directly pursuant to this chapter does not fully
comply with the provisions of the workers' compensation law relating to the payment of
compensation, medical benefits or the final orders of the commission, the workers'
compensation claims shall be assigned by the commission to the state compensation fund,
and the state compensation fund shall process the claims and pay such compensation,
benefits or amounts due on behalf of and under the direction of the special fund
established by section 23-1065. The special fund shall periodically, but not less
frequently than quarterly, reimburse the state compensation fund for the compensation,
benefits or amounts so paid, together with reasonable administrative costs, necessary
expenses and reasonable attorney fees.
B. In addition to any reimbursement authorized under subsection A of this section,
the special fund may use monies for any expense or service that is necessary to assist in
the determination of liability of a claim that is assigned under this section or
collected against the cash, securities, bond and other assets of the insurance carrier or
employer. These expenses may include travel, discovery procedures and employing any
expert, consultant or professional, including an attorney, auditor, examiner or actuary.
C. The special fund shall have a claim against the insurance carrier or employer
for all monies that are spent or anticipated to be spent under this section, including
administrative costs, necessary expenses and attorney fees. Any claim by the special fund
shall be made on the cash, securities or bond filed under section 23-961 or applicable
rules or on any other asset of the insurance carrier or employer.
D. The commission may increase the assessment established in section 23-1065 by not
to exceed one-half of one per cent of such assessment in any one year to reimburse the
special fund for its net loss incurred under this section.
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