Requires an employer to report the denial of all claims on an annual basis.

A BILL FOR AN ACT

SECTION 1. Section 431:14-110.5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§431:14-110.5[]] Disclosure of workers' compensation premium information. (a) All policies issued to employers for workers' compensation insurance shall disclose clearly to employers as separate figures the portion of the premium charged for:

In addition, a disclosure statement shall indicate to the employer both the portion of the premium and the monetary cost attributable to loss control and administrative costs, attorney's fees of the insurer, the cost of employer requested medical examinations, and private investigation costs.

(b) When a policy is issued to employers for workers' compensation insurance, it shall be accompanied by a statement disclosing the percentages of premiums expended during the previous year by the insurer for claims paid in the categories specified in subsection (a), including loss control and administrative costs, attorney's fees of the insurer, the cost of employer requested medical examinations, and private investigation costs.

(c) All denials of claims shall be reported to the employer on an annual basis, along with the dates of injuries or alleged injuries, the dates employer's reports were filed, the dates of denials or the dates compensability was accepted, and the dates of subsequent appeals and status of appeals.

[(c)](d) The information provided to employers by insurers pursuant to this section shall be provided on an annual basis to the director of labor and industrial relations and to the commissioner.

[(d)] (e) Any insurer found in violation of this section shall pay a fine of $5,000 per violation to the insured, plus attorney's fees and costs to the insured for enforcing this section."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.