H-3645              _______________________________________________

                                                   HOUSE BILL NO. 1609

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Sayan and Wang

Read first time 1/20/88 and referred to Committee on Commerce & Labor.

AN ACT Relating to duties of employers for industrial insurance purposes; amending RCW 51.28.050; and adding a new section to chapter 51.04 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 51.04 RCW to read as follows:

          The following shall constitute bad faith conduct on the part of employers under this title:

          (1) The failure of a self-insurer to submit a medical report with the request for closure of a claim under this chapter as required by the department; or

          (2) Misrepresentation, inducement, or coercion of an employee by any person to choose a nonindustrial option for medical coverage of a claim otherwise covered under this chapter if the employer has knowledge of the industrial relationship of the condition or injury.

          Employers who are determined by the department to have engaged in bad faith conduct shall be subject to the payment of treble damages and the claimant's reasonable attorneys' fees in addition to any other penalty imposed under this title.  Damages  awarded under this section in excess of the claimant's actual damages including interest, costs, and attorneys' fees shall be paid to the medical aid fund.

        Sec. 2.  Section 51.28.050, chapter 23, Laws of 1961 as amended by section 1, chapter 159, Laws of 1984 and RCW 51.28.050 are each amended to read as follows:

          No application shall be valid or claim thereunder enforceable unless filed within one year after the day upon which the injury occurred or the rights of dependents or beneficiaries accrued, except as provided in RCW 51.28.055.  Failure to file an application or take action to enforce a claim thereunder resulting from a violation of section 1 of this 1988 act shall be exempt from the limitation imposed by this section.