Tennessee § 50-6-419 - Rules governing settlement of workers' compensation claims.

§ 50-6-419. Rules governing settlement of workers' compensation claims.

Notwithstanding any other provision of this part or of title 56 to the contrary, in order to assure that injured employees are treated fairly and to assure that claims are handled in an appropriate and uniform manner, the administrator of the bureau of workers' compensation shall set standards by rule governing the adjustment and settlement of workers' compensation claims by insurance carriers, self-insured employers, and any entity acting on behalf of an insurance carrier or self-insured employer in the resolution of claims brought pursuant to this title. The standards may include, but are not limited to, standards governing contact with an employee after notice of injury has been given, the processing of claims and procedures for making an offer of settlement. The administrator shall promulgate rules and regulations to effectuate the purposes of this section. The rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. The administrator may enforce the standards described in this section, and any rules promulgated pursuant to this section, through assessment of civil penalties pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, against any entity employing individuals who adjust workers' compensation claims under this title. Such penalties may be in an amount not less than fifty dollars ($50.00) nor more than five thousand dollars ($5,000) per violation. Each separate act shall constitute a separate violation and may subject the entity to assessment of additional civil penalties. The administrator may also notify: The department of commerce and insurance of any penalties assessed by the bureau pursuant to this section; and The principal corporate office of any insurer of any violations of the standards or rules described in this section. Acts 1996, ch. 944, § 53; 1999, ch. 520, § 41; 2013, ch. 282, § 1; 2015, ch. 341, § 15; 2016, ch. 803, §§ 2, 3. Code Commission Notes. Former subsection (d), concerning the development of standards for the adjustment and settlement of workers' compensation claims by insurance carriers and self-insured employers, was deleted as obsolete by the code commission in 2005. Compiler's Notes. Acts 1996, ch. 944, which enacted this section, is known and may be cited as the “Workers' Compensation Reform Act of 1996.” Acts 2016, ch. 803, § 4 provided that the act, which amended this section, shall apply to actions committed on or after January 1, 2017. The text of this section as was effective for injuries occurring, and actions committed, on or after July 1, 2014, but prior to January 1, 2017, is as follows: “(a) Notwithstanding any other provision of this part or of title 56 to the contrary, in order to assure that injured employees are treated fairly and to assure that claims are handled in an appropriate and uniform manner, the administrator of the bureau of workers' compensation shall set standards by rule governing the adjustment and settlement of workers' compensation claims by insurance carriers and self-insured employers. The standards may include, but are not limited to, standards governing contact with an employee after notice of injury has been given, the processing of claims and procedures for making an offer of settlement.” “(b) The administrator shall promulgate rules and regulations to effectuate the purposes of this section. The rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.” “(c)The administrator of the bureau of workers' compensation shall enforce standards adopted pursuant to this section in the same manner and with the same authority as the commissioner of commerce and insurance possesses with respect to violations of this part and title 56. The administrator shall also notify the principal corporate office of any insurer of any violations of the standards.” Amendments. The 2013 amendment, effective July 1, 2014, substituted “administrator of the division of workers' compensation” for “commissioner of labor and workforce development” in the first sentence in (a) and the first sentence in (c); and substituted “administrator” for “commissioner” in (b) and in the second sentence in (c). The 2015 amendment substituted “bureau” for “division” in the first sentence in (a) and in the first sentence in (c). The 2016 amendment, effective January 1, 2017, substituted “insurance carriers, self-insured employers, and any entity acting on behalf of an insurance carrier or self-insured employer in the resolution of claims brought pursuant to this title” for “insurance carriers and self-insured employers” at the end of the first sentence in (a); and rewrote (c) which read: “(c) The administrator of the bureau of workers' compensation shall enforce standards adopted pursuant to this section in the same manner and with the same authority as the commissioner of commerce and insurance possesses with respect to violations of this part and title 56. The administrator shall also notify the principal corporate office of any insurer of any violations of the standards.” Effective Dates. Acts 2013, ch. 282, § 10. July 1, 2014. Acts 2015, ch. 341, § 19. May 4, 2015. Acts 2016, ch. 803, § 4. January 1, 2017; provided that for purposes of promulgating rules, the act took effect April 14, 2016.