SC Lawyer, March 2008, #4. The 2007 South Carolina Workers' Compensation Reform Act: An Overview Part Two.

South Carolina Lawyer

2008.

SC Lawyer, March 2008, #4.

The 2007 South Carolina Workers' Compensation Reform Act: An Overview Part Two

South Carolina LawyerMarch 2008The 2007 South Carolina Workers' Compensation Reform Act: An Overview Part Two In continuation of Part One (of two) from the January issue, this discussion of the new workers' compensation reform legislation addresses the gradual dissolution of the Second Injury Fund, revisions to the Omnibus Insurance Fraud and Reporting Immunity Act, and regulation of experience modification rates and loss cost multipliers. The article concludes with some brief housekeeping matters geared towards the Workers' Compensation Commission itself, including issues related to deputy commissioners and the chairman, administrative assistants and retention of Commission files.

Second Injury Fund

The Second Injury Fund will be phased out of existence. There are some very specific requirements for perfecting a claim for reimbursement. According to Section 42-7-320 (B)(1), notice of a potential claim for reimbursement must be filed by December 31, 2010, and failure to provide timely notice shall bar recovery from the fund. To provide notice of a claim, the employer or carrier must still notify the Workers' Compensation Commission and the director of the Second Injury Fund in writing. However, the notice must now also include all of the following information: (1) date of accident; (2) employee's name; (3) employer's name and address; (4) insurance carrier's name, address and the NCCI code; and (5) insurance carrier's claim number (same number used by carrier to report claim to NCCI), policy number and policy effective date. § 42-9-400(f).

All information required for consideration of accepting a claim for reimbursement must be submitted to the Second Injury Fund by June 30, 2011, and failure to submit information by this deadline shall act as a bar to recovery. The Second Injury Fund shall not accept a claim for reimbursement after December 31, 2011. No claim for reimbursement will be considered for an injury that occurs on or after July 1, 2008.

Pursuant to Section 42-7-320, the Second Injury Fund will be phased out until it ultimately ceases operations on July 1, 2013. Section 42-7-200 provides that effective July 1, 2013, all functions of the Second Injury Fund will be transferred to the Uninsured Employers' Fund, which will be...