Bill Text: CT HB05449 | 2016 | General Assembly | Introduced

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Bill Title: An Act Concerning Liability For Unfair Insurance Practices In Workers' Compensation Claims.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2016-02-26 - Public Hearing 03/03 [HB05449 Detail]

Download: Connecticut-2016-HB05449-Introduced.html

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General Assembly		Raised Bill No. 5449
February Session, 2016		LCO No. 2087
		*02087_______LAB*
Referred to Committee on LABOR AND PUBLIC EMPLOYEES
Introduced by:
(LAB)

AN ACT CONCERNING LIABILITY FOR UNFAIR INSURANCE PRACTICES IN WORKERS' COMPENSATION CLAIMS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 31-300 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2016):

(a) As soon as may be after the conclusion of any hearing, but no later than one hundred twenty days after such conclusion, the commissioner shall send to each party a written copy of the commissioner's findings and award. The commissioner shall, as part of the written award, inform the employee or the employee's dependent, as the case may be, of any rights the individual may have to an annual cost-of-living adjustment or to participate in a rehabilitation program administered by the Department of Rehabilitation Services under the provisions of this chapter. The commissioner shall retain the original findings and award in said commissioner's office. If no appeal from the decision is taken by either party within twenty days thereafter, such award shall be final and may be enforced in the same manner as a judgment of the Superior Court. The court may issue execution upon any uncontested or final award of a commissioner in the same manner as in cases of judgments rendered in the Superior Court; and, upon the filing of an application to the court for an execution, the commissioner in whose office the award is on file shall, upon the request of the clerk of said court, send to the clerk a certified copy of such findings and award. In cases where, through the fault or neglect of the employer or insurer, adjustments of compensation have been unduly delayed, or where through such fault or neglect, payments have been unduly delayed, the commissioner may include in the award interest at the rate prescribed in section 37-3a and a reasonable attorney's fee in the case of undue delay in adjustments of compensation and may include in the award in the case of undue delay in payments of compensation, interest at twelve per cent per annum and a reasonable attorney's fee. Payments not commenced within thirty-five days after the filing of a written notice of claim shall be presumed to be unduly delayed unless a notice to contest the claim is filed in accordance with section 31-297. In cases where there has been delay in either adjustment or payment, which delay has not been due to the fault or neglect of the employer or insurer, whether such delay was caused by appeals or otherwise, the commissioner may allow interest at such rate, not to exceed the rate prescribed in section 37-3a, as may be fair and reasonable, taking into account whatever advantage the employer or insurer, as the case may be, may have had from the use of the money, the burden of showing that the rate in such case should be less than the rate prescribed in section 37-3a to be upon the employer or insurer. In cases where the claimant prevails and the commissioner finds that the employer or insurer has unreasonably contested liability, the commissioner may allow to the claimant a reasonable attorney's fee. No employer or insurer shall discontinue or reduce payment on account of total or partial incapacity under any such award, if it is claimed by or on behalf of the injured person that such person's incapacity still continues, unless such employer or insurer notifies the commissioner and the employee of such proposed discontinuance or reduction in the manner prescribed in section 31-296 and the commissioner specifically approves such discontinuance or reduction in writing. The commissioner shall render the decision within fourteen days of receipt of such notice and shall forward to all parties to the claim a copy of the decision not later than seven days after the decision has been rendered. If the decision of the commissioner finds for the employer or insurer, the injured person shall return any wrongful payments received from the day designated by the commissioner as the effective date for the discontinuance or reduction of benefits. Any employee whose benefits for total incapacity are discontinued under the provisions of this section and who is entitled to receive benefits for partial incapacity as a result of an award, shall receive those benefits commencing the day following the designated effective date for the discontinuance of benefits for total incapacity. In any case where the commissioner finds that the employer or insurer has discontinued or reduced any such payment without having given such notice and without the commissioner having approved such discontinuance or reduction in writing, the commissioner shall allow the claimant a reasonable attorney's fee together with interest at the rate prescribed in section 37-3a on the discontinued or reduced payments.

(b) Notwithstanding the provisions of subsection (a) of this section, in cases where (1) the employer or insurer has unreasonably contested liability, or (2) payments or adjustments of compensation have been unreasonably delayed through the fault or neglect of the employer or insurer, a claimant may bring an action against such employer or insurer for damages, including, but not limited to, demonstrable economic damages, damages for mental or physical injury or pain and suffering, and reasonable attorney's fees on account of a breach of the covenant of good faith and fair dealing or an unfair practice, as defined in section 38a-816, or unfair trade practice, as described in chapter 735a. A claimant may bring such action prior to exhausting the administrative remedies of chapter 568, except any damages or benefits awarded by the commissioner pursuant to said chapter shall be credited against any damages or benefits awarded pursuant to such action. In cases where the claimant does not prevail in such action, the court may award the employer or insurer reasonable attorney's fees not to exceed five thousand dollars.

This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2016	31-300

Statement of Purpose:

To allow individuals seeking compensation for a workers' compensation claim to bring an action against an employer or insurer that has unreasonably contested liability or unreasonably delayed payments or adjustments of such compensation.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]