H-217                _______________________________________________

                                                   HOUSE BILL NO. 1083

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives Cole, Vekich, R. King, Jones, Anderson, Nelson, Sayan and K. Wilson

Read first time 1/13/89 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:

          (1) It is an unfair and deceptive practice for an employer or representative of an employer to fail to act in good faith when dealing with employees under this title.

          (2) The following shall constitute bad faith conduct on the part of employers and representatives of employers under this title:

          (a) Misrepresentation of a material or pertinent fact to employees who inquire about or actually file a claim for benefits;

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

          (c) Direct contact with an employee who has filed a state fund claim, unless the contact is made by the employer or an employee of the employer;

          (d) Disapproval or closure of a claim without substantial good cause;

          (e) Requesting the department to deny an application to reopen a claim pursuant to RCW 51.32.160 without objective, verifiable medical evidence;

          (f) Failure to administer the claim of an employee in good faith, including claims alleging violation of an applicable statute or rule; and

          (g) Inappropriate termination or returning an employee to work for the purpose of avoiding paying a pension or terminating wage loss.

          (3) Any order or action by the department in response to a request by a self-insured employer under chapter 51.14 RCW, shall not be relevant or admissible in any action brought under this section.

          Employers and representatives of employers who  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.

          For the purposes of this section, a representative of an employer includes any agent of the employer, including a third party administrator or claims adjuster.

        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 1989 act shall be exempt from the limitation imposed by this section.