2705-S AMH CONW CORD 33

SHB 2705 - H AMD 975 FAILED 2-16-98

By Representative Conway

     On page 3, after line 10, insert the following:

     "(5)(a) A self-insurance group formed under this section,  the employers participating in the group, and the group's and employers' claims administrators have a duty of good faith and fair dealing towards claimants.  Violations of these good faith duties shall include, but not be limited to: (i) Attempting to close a valid claim under this section that the group or employer, or group's or employer's claims administrator, knew or should have known was closed inappropriately; (ii) interfering with a worker's right to file a claim under this title; or (iii) having a history or pattern of repeated unfair claims practices.  The department shall adopt rules on unfair claims practices.

(b) A worker of an employer participating in a self-insurance group formed under this section, or the beneficiary of such worker, who is injured or damaged because of a violation of (a) of this subsection or violation of a rule adopted by the director under (a) of this subsection may bring a civil action against the self-insurance group,  the participating employer, and/or the group's or employer's claims administrator in superior court to enjoin further violations and to recover reasonable damages sustained by him or her, together with the cost of the suit including reasonable attorneys' fees to be set by the court."

EFFECT:  Adds that self-insurance groups in the logging industry, the participating employers, and their claims administrators have a duty of good faith and fair dealing towards claimants.  Violations of the duty include inappropriately closing claims, interfering with rights to file a claim, or a pattern of repeated unfair practices.  A worker or beneficiary may file a civil action against the group, employer, or claims administrator to enjoin violations and to recover damages, including costs and attorneys' fees.