23-984. Misrepresentation of payroll, job
description, job function or loss history affecting premium
payment; penalty; violation; classification; civil action
A. It is unlawful for an employer to wilfully misrepresent to an insurance carrier
the amount of payroll, the job description or job function of an employee, or the
employer's loss history, on which the premium for workers' compensation insurance to be
paid to the insurance carrier is based.
B. An employer who violates subsection A is guilty of a class 6 felony.
C. In addition to the punishment that may be imposed pursuant to subsection B, an
employer who violates subsection A is liable for a penalty of up to three times the
amount of the difference in premium paid and the amount the employer should have
paid. The penalty shall be collected in a civil action by the insurance carrier, in
addition to any other damages that are incurred by the insurance carrier due to the
misrepresentation, including costs and attorney fees. The insurance carrier shall
initiate the civil action within four years after the date the insurance carrier knew or
with the exercise of reasonable diligence should have known of the misrepresentation.
The insurance carrier may initiate the civil action regardless of whether a criminal
action is brought against the employer.
|