North Carolina
Industrial Commission

MINUTES

POLICIES AND PROCEDURES FOR THE HANDLING OF NON-INSURED CASES

JANUARY 23, 1998

Deputy Commissioner Douglas Berger, advisor to the Fraud Investigations Section, prepared recommendations with regard to establishing a set of policies and procedures to be followed by the Deputy Commissioners and the Full Commission with regard to the handling of non-insured cases.

The Commission, in review of the recommendations made by Deputy Commissioner Douglas Berger and upon further discussion, have decided to adopt the following polices and procedures with regard to the handling of non-insured cases:

1. Deputies shall report all non-insured cases to the Fraud Investigations Section when they calendar the case for hearing.

2. Deputies shall not make any representations as to whether or not the Industrial Commission will seek criminal prosecution in a non-insured case.

3. If a case is settled involving a non-insured defendant, a copy of the approved agreement shall be sent to the Fraud Investigations Section.

4. The Full Commission and the Deputy Commissioners shall expedite the hearing and the determination of a decision in all non-insured cases.

5. The Full Commission and the Deputies shall provide copies of all opinions and awards involving non-insured cases to the Fraud Investigations Section.

6. The Fraud Investigations Deputy Advisor shall facilitate the scheduling of contempt proceedings in all non-insured cases where there is non-compliance with the terms of a settlement agreement or with the terms of an Opinion and Award.

7. Deputies shall give written notice to the parties that a determination as to whether the defendant-employer should have to pay penalties for the failure to have workers’ compensation will be included as an issue in the hearing of the case.

8. Deputies shall enter a written order with regard to whether penalties are to be assessed in the case and for what period of time. A copy of this order shall be sent to the Fraud Investigations Section.

9. All orders involving an assessment of penalties against the employer shall at least require a penalty to be assessed beginning on the date of the injury and continuing until workers’ compensation is purchased or a showing is made to the Industrial Commission that the defendant-employer is no longer required to have workers’ compensation insurance.

10. No waiver of penalties shall take place unless the parties resolve the claim and the defendant-employer has purchased workers’ compensation insurance or has made a showing that the defendant-employer is no longer required to purchase workers’ compensation treatment.

11. The Fraud Investigations Section Advisor will monitor the collection of penalties assessed and will act as a liaison with the Attorney General’s Office in an effort to obtain collection of these penalties.

12. All persons who may be liable for the failure of the defendant-employer to have secured workers’ compensation insurance shall be added as named defendants. The deputy shall direct the plaintiff to identify and include these persons as named defendants in the case prior to the hearing. The deputy shall give written notice to those parties that the issue of the 100 percent civil penalty will be considered at the hearing in the case.

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