|Author||Subject: ANOTHER good one..!|
|Retired|| Posted At 00:41:30 07/14/2001
3701.5. (a) If the director determines that a private self-insured
employer has failed to pay workers' compensation as required by this
division, the security deposit shall be utilized to administer and
pay the employer's compensation obligations.
(b) If the director determines the security deposit has not been
immediately made available for the payment of compensation, the
director shall determine the method of payment and claims
administration as appropriate, which may include, but is not limited
to, payment by a surety that issued the bond, or payment by an
issuer of an irrevocable letter of credit, and administration by a
surety or by an adjusting agency, or through the Self-Insurers'
Security Fund, or any combination thereof.
(c) If the director determines the payment of benefits and claims
administration shall be made through the Self-Insurers' Security
Fund, the fund shall commence payment of the private self-insured
employer's obligations for which it is liable under Section 3743
within 30 days of notification. Payments shall be made to claimants
whose entitlement to benefits can be ascertained by the fund, with or
without proceedings before the appeals board. Upon the assumption
of obligations by the fund pursuant to the director's determination,
the fund shall have a right to immediate possession of any posted
security and the custodian, surety, or issuer of any irrevocable
letter of credit shall turn over the security to the fund together
with the interest that has accrued since the date of the self-insured
employer's default or insolvency.
3743. (a) Upon order of the director pursuant to Section 3701.5,
the fund shall assume the workers' compensation obligations of an
(b) Notwithstanding subdivision (a), the fund shall not be liable
for the payment of any penalties assessed for any act or omission on
the part of any person other than the fund, including, but not
limited to, the penalties provided in Section 132a, 3706, 4553, 4554,
4556, 4557, 4558, 4601.5, 5814, or 5814.1.
(c) The fund shall be a party in interest in all proceedings
involving compensation claims against an insolvent self-insurer whose
compensation obligations have been paid or assumed by the fund. The
fund shall have the same rights and defenses as the insolvent
self-insurer, including, but not limited to, all of the following:
(1) To appear, defend, and appeal claims.
(2) To receive notice of, investigate, adjust, compromise, settle,
and pay claims.
(3) To investigate, handle, and deny claims.
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