5580-S AMS HEAV S2463.1

SSB 5580 - S AMD - 203

By Senators Heavey

    On page 5, after line 30, insert the following:

    "(12)(a) Self-insured employers 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 employer, or his or her representative, 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 a self-insured employer, or beneficiary of such worker, who is injured or damaged because of a violation of this section or violation of a rule adopted by the director under this section may bring a civil action against the self-insurer 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."

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EFFECT:  Adds that a self-insured employer has 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 self-insurer to enjoin violations and to recover damages, including costs and attorneys' fees.