Is Your Work Comp Insurer Broke and Belly Up?

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On April 19, 2013, S &C Claims Services, Inc., sent a letter to all injured workers insured by Builders Insurance Company that their checks due that week wouldn't be sent as scheduled. A Las Vegas District Court ordered the Commissioner of Insurance to act as Temporary Receiver for the company while future payments were scheduled to be made by the Nevada Insurance Guaranty Association.

When an insurance company that underwrites the workers compensation policies for Nevada employers goes broke and files for bankruptcy, as did Builders Insurance Company, Nevada law provides for a continuation of claims benefits through the Nevada Insurance Guaranty Association.

Nevada law (NRS title 57) provides that when an industrial insurer in Nevada files for bankruptcy, all claims of injured workers under workers' compensation policies issued by that insurer should be eligible for payment by the Nevada Insurance Guaranty Association. In the instant case involving Builders Insurance Company, while compensation checks will be issued through the Guaranty Association, S&C Claims Services, as their third-party administrator, will continue to make determinations on medical care, PPD awards, and vocational rehabilitation.

Fortunately, I do not have any clients with injury claims against Builders Insurance Company right now. I don't know how long the Guaranty Association is taking to send out compensation benefits. I can only tell you that in the past, when I've had to go through this with clients with bankrupt insurers, it was another hassle causing further hardship and delay to the injured worker. Unless I demanded prompt action on the claim and kept on top of requests for treatment authorizations, it took months for anything to happen.

If you currently have a claim under a builders Insurance Company policy and received a letter from S&C Claims Services, for now you should continue to contact S&C for authorizations for medical care and questions about your benefits. However, your compensation checks will have to be issued through the Nevada Insurance Guaranty Association. Their contact information is as follow:

Nevada Insurance Guaranty Association (702) 368-0607, fax (702) 368-2455, Email: service@niga-pc.org, web site: www.niga-pc.org. Click through to their website to learn more.

Topics:  Compensation & Benefits, Workplace Injury

Published In: Bankruptcy Updates, Worker’s Compensation Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Virginia L. Hunt, Law Office of Virginia Hunt | Attorney Advertising

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