Michael F. Easley, Governor
Buck Lattimore, Chairman

Bernadine S. Ballance, Commissioner
Thomas J. Bolch, Commissioner
Laura K. Mavretic, Commissioner
Renée C. Riggsbee, Commissioner
Christopher Scott, Commissioner
Dianne C. Sellers, Commissioner

North Carolina
Industrial Commission




TO:         All Interested Parties

FROM:   Chairman Buck Lattimore

DATE:    May 8, 2002

RE:         Rehabilitation of Legion Insurance Company – Update

   Rehabilitation of Villanova Insurance Company - Update

            Since our previous web posting, the Commission has received additional new information regarding Legion and Villanova Insurance Companies (hereinafter “Legion”).

            Legion’s report indicates that these companies in Rehabilitation:

1.      Continue to pay temporary total, temporary partial, permanent total, permanent partial and scheduled loss of use rating benefits.

2.      Expenses for medical treatment, prescription costs and mileage are also being paid.

In general, Legion is paying these benefits in “undisputed workers’ compensation claims.” Payments are being deferred on “lump sum” awards at this time. However, if a lump sum award has been granted, or is granted in the future, Legion will pay the lump sum at the employee's weekly compensation rate.

            Procedurally, Legion is processing all “denied or disputed claims” referred to mediation as follows. Legion will direct defense counsel to attend mediation in an attempt to reach settlement. If such a settlement is reached, Legion will pay "on forms" or per the compromise agreement in weekly payments. If back weekly payments become due as a result of such compromise agreements, Legion will pay such benefits to bring the employee to current status.

            Finally, although Legion is deferring payment of third party administrators' and other vendors' fees (e.g. attorneys' fees) incurred, but not paid prior to April 1, 2002, Legion is paying these expenses for services provided after April 1, 2002.

                Legion has requested that the Industrial Commission grant a ninety (90) day stay effective from April 1, 2002 as to all denied or disputed claims not resolved through the mediation process. Chief Deputy Commissioner Gheen has issued an Order denying the requested stay at the Deputy Commissioner level. A copy of that order is attached. Therefore, the Commission will continue to process all claims in the normal course, including hearings conducted by the Deputy Commissioner Section.

            Please contact the Commission immediately should any claimant not receive benefits to which they are lawfully entitled or should benefits awarded be suspended or terminated for unexplained reasons. Reports, questions or concerns regarding Legion and Villanova claims should be directed to: Stephen T. Gheen, Chief Deputy Commissioner, 919-807-2540 or gheen@ind.commerce.state.nc.us. Due to the volume of inquiries, email communication is preferred, though not required. The Rehabilitator has established a direct email address for claim inquiries, rehabilitator@legionpa.mutrisk.com.

The Industrial Commission website (www.comp.state.nc.us) will be updated as needed with additional information.

Read Chairman Lattimore's November 4, 2002 Memo

Read Chief Deputy Commissioner Gheen's May 2, 2002 Order

N.C. Industrial Commission · 4319 Mail Service Center · Raleigh, NC 27699-4319
Main Phone: (919) 807-2500 · Fax: (919) 715-0282
NCIC Home Page: http://www.comp.state.nc.us/