Civil penalty for inducing failure to report claims
- • failure to pay assessments
- • failure to comply with statutes, rules or orders
- • amount
- • procedure
(1) The Director of the Department of Consumer and Business Services shall assess a civil penalty against an employer or insurer who intentionally or repeatedly induces claimants for compensation to fail to report accidental injuries, causes employees to collect accidental injury claims as off-the-job injury claims, persuades claimants to accept less than the compensation due or makes it necessary for claimants to resort to proceedings against the employer to secure compensation due.
(2) The director may assess a civil penalty against an employer, insurer, managed care organization or service company that:
(a) Fails to pay assessments or other payments due to the director under this chapter and is in default; or
(b) Fails to comply with statutes, rules or orders of the director regarding reports or other requirements necessary to carry out the purposes of this chapter.
(3) Except as specified in ORS 656.780 (Certification and training of claims examiners), the director may assess a penalty against a service company only for claims processing performance deficiencies revealed in annual audits associated with claims processing performance. The director may assess only one penalty for each separate violation by an employer, insurer or service company for deficiencies revealed in annual audits associated with claims processing performance.
(4) A civil penalty shall be not more than $2,000 for each violation or $10,000 in the aggregate for all violations within any three-month period. Each violation, or each day a violation continues, shall be considered a separate violation.
(5) ORS 656.735 (Civil penalty for noncomplying employers) (4) to (6) and 656.740 (Review of proposed order declaring noncomplying employer or nonsubjectivity determination) also apply to orders and penalties assessed under this section. [1975 c.556 §38; 1979 c.839 §31; 1987 c.233 §2; 1987 c.884 §46; 2003 c.170 §13; 2005 c.221 §3; 2007 c.270 §9; 2015 c.194 §1]
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