SENATE FILE 262

BY  WARD

A BILL FOR

An Act relating to the demonstration of a reasonable or probable cause or excuse for the denial, delay in payment, or termination of workers’ compensation benefits.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 86.13, subsection 4, paragraph c, subparagraph (1), Code 2011, is amended to read as follows:
   (1)  The excuse was preceded by a reasonable investigation and evaluation by the employer or insurance carrier into whether benefits were owed to the employee.  This criteria shall be considered satisfied if the employer or insurance carrier demonstrates that the employee failed to cooperate with a reasonable investigation and evaluation by the employer or insurance carrier into whether benefits were owed to the employee.
EXPLANATION
   This bill provides that an employer or insurance carrier satisfies one of the criteria for establishing a reasonable or probable cause or excuse for the denial, delay in payment, or termination of workers’ compensation benefits and avoiding the imposition of penalty benefits, if the employer or insurance carrier demonstrates that the employee failed to cooperate with a reasonable investigation and evaluation by the employer or insurance carrier into whether benefits were owed to the employee.