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COMMONWEALTH OF PENNSYLVANIA

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PA Bulletin, Doc. No. 05-1291a

[35 Pa.B. 3807]

[Continued from previous Web Page]

§ 121.18.  Subrogation [procedure].

   (a)  [In the event of] If a third party obtains recovery under section 319 of the [Workers' Compensation Act] act (77 P. S. § 671), a Third Party Settlement Agreement, Form [OIDC-380] LIBC-380, shall be executed by the parties [thereon].

   (b)  If credit is requested against future compensation payable, a Supplemental Agreement for Compensation for Disability or Permanent Injury, Form LIBC-337, shall also be filed with the [Department of Labor and Industry indicating] Bureau, including the amount and periodic method of pro rata reimbursement of attorney fees and expenses.

§ 121.20. Commutation of compensation under section 412 of the act (77 P. S. § 791).

   Commutation under section 412 of the [Workers' Compensation Act] act (77 P. S. § 791) shall only be allowed for the final [25] 52-week period or less. [It is not intended to permit the payment of compensation by 25-week] The commutation amount shall not be paid in installments. [The full amount of compensation commuted shall be sent to the employe with Form LIBC-498 and a copy of this form shall be sent to the Department. If a statement of account showing the full amount of compensation paid, including the amount commuted, accompanies the Department copy of Form LIBC-498, it will serve to close the case. Commutation of payments under section 316 of the Workers' Compensation Act (77 P. S. § 604) is dealt with under the rules for hearing before referees.] A Commutation of Compensation, Form LIBC-498, shall be filed with the Bureau.

§ 121.21. [Coal diseases--claim and reimbursement] Reimbursement for silicosis, anthraco-silicosis or coal workers' pneumoconiosis.

   (a)  Claims for compensation for silicosis, anthraco-silicosis or coal workers' pneumoconiosis as defined in section 108(q) of the [Workers' Compensation Act] act (77 P. S. § 27.1(q)), for disability or death, [where] when the date of disability commences or death occurs between July 1, 1973, and June 30, 1976, inclusive, [where] and when the liable employer is seeking to offset part of its liability under section 305.1 of the [Workers' Compensation Act] act (77 P. S. § 411.1), shall be instituted by [claim petition filed with the Department of Labor and Industry (Department) on Form OIDC-362] filing a Claim Petition for Workers' Compensation, Form LIBC-362, with the Bureau.

   (b)  Unless stayed by a supersedeas on appeal, following the issuance of an award by the [referee] workers' compensation judge, the [appeal board] Board or the appellate court, compensation payments for silicosis, anthraco-silicosis or coal workers' pneumoconiosis[, as set forth in section 108(q) of the Workers' Compensation Act] shall be made in full by the insurer [with the following provisions for reimbursement by the Commonwealth in accordance with section 305.1 of the Workers' Compensation Act:]. If the insurer seeks reimbursement from the Bureau under section 305.1 of the act, it shall submit the following to the Bureau:

   (1)  A notarized statement, signed by an officer of the company, containing an itemized list of payments made to all claimants[, shall be submitted to the Department] for quarterly reimbursement. Each itemized entry shall contain [Social Security number, claimant's name and address, and total amount paid claimant] the claimant's name, address, Social Security number and the total amount paid to the claimant. Each itemized list shall be made for a full and exact calendar quarter[,]: that is, January 1 through March 31[,]; April 1 through June 30[,]; July 1 through September 30[,]; or October 1 through December 31. Each list shall [be submitted in] have two categories: recurring quarterly reimbursement and initial payment made to each claimant, which payment should include the current reimbursable quarter. Each list submitted shall be in roster form and in numerical order according to the claimant's Social Security number, [shall] contain the claimant's name and Social Security number, [shall] cover the amount to be reimbursed and the total amount paid to the claimant, and [shall] be [submitted on the quarterly reimbursement statement Bureau Form OIDC-683] reported in a format as required by the Bureau.

   (2)  Each bill containing the itemized entries shall be submitted [in duplicate] to the Bureau [of Occupational Injury and Disease Compensation] no later than the 15th day of the month following the end of the calendar quarter for which reimbursement is sought. A bill received after that date will not be considered for payment until the end of the following quarter.

   (c)  [For the purpose of auditing, every insurer shall be required to keep concise records concerning payments and reimbursements, to be made available for inspection by the Department or a governmental agency at reasonable times.] For auditing purposes, an insurer shall keep records for 3 years concerning payments and reimbursements made under this section. The records shall be made available for inspection by the Bureau at reasonable times.

   (d)  If the Bureau [of Workers' Compensation (Bureau) has reason to believe] has information that the insurer [or self-insurer] primarily liable for compensation under the act has failed to make a payment under the act and [the] this section, the Bureau may[, in its discretion, make payments of] pay compensation directly to the claimant, for the portion of the compensation which is payable by the Commonwealth under section 305.1 of the [Workers' Compensation Act] act until [a time] the insurer [or self-insurer] resumes payment of compensation. [Nothing in this section shall require the] The Bureau is not required to initiate direct payments to a claimant [where] when the insurer [or self-insurer] is making full payment of the compensation but is not seeking reimbursement [pursuant to] under this section. [Nothing in this section shall eliminate the responsibility of the insurer or self-insured to comply with the provisions of the act and the provisions of this part or prohibit prosecution for any alleged violations of the act or this part or in accordance with the act.]

§ 121.22.  Subsequent injury fund.

   (a)  Compensation for a subsequent injury, as defined in section 306.1 of the act (77 P. S. § 516) shall be paid as follows:

*      *      *      *      *

   (2)  Upon expiration of the specific loss period, the [Department] Bureau will be responsible for additional compensation due for the duration of total disability. The fund established under section 306.2 of the act (77 P. S. § 517), from which these payments are to be made, shall be maintained as follows:

*      *      *      *      *

   (b)  Insurance carriers shall remit to the [Department] Bureau assessment amounts as follows:

*      *      *      *      *

   (c)  If the amount of earned premium as reported to the Insurance Department, by an insurance carrier, for the preceding calendar year is less than zero, the [Department] Bureau will calculate the assessment amount as though an earned premium amount of zero were reported to the Insurance Department.

*      *      *      *      *

   (e)  Self-insured employers and runoff self-insurers shall pay assessments directly to the [Department] Bureau.

   (f)  The claimant shall file a [petition for additional compensation] Claim Petition for Additional Compensation from the Subsequent Injury Fund Pursuant to Section 306.1 of the Workers' Compensation Act, Form LIBC-375, as provided in section 315 of the act (77 P. S. § 602) or the claim will be forever barred.

§ 121.23.  Supersedeas fund.

   (a)  Annual assessments under section 443 of the act (77 P. S. § 999) shall be in amounts determined by the following:

*      *      *      *      *

   (3)  Insurance carriers shall remit to the [Department] Bureau assessment amounts as follows:

*      *      *      *      *

   (b)  If the amount of earned premium as reported to the Insurance Department, by an insurance carrier, for the preceding calendar year is less than zero, the [Department] Bureau will calculate the assessment amount as though an earned premium amount of zero were reported to the Insurance Department.

*      *      *      *      *

   (d)  Self-insured employers and runoff self-insurers shall pay assessments directly to the [Department] Bureau.

   (e)  Applications for reimbursement shall be filed directly with the Bureau on [Form LIBC-662, ''] an Application for Supersedeas Fund Reimbursement[.''], Form LIBC-662. Applications will be processed administratively to determine whether the parties can agree on the payment or amount of reimbursement. If the payment or amount of reimbursement cannot be agreed upon, the matter will be assigned to a [Workers' Compensation Judge] workers' compensation judge for a formal hearing and adjudication.

§ 121.24.  [Approval of fees] (Reserved).

   [In all cases involving claim petitions or other petitions under The Pennsylvania Occupational Disease Act (77 P. S. §§ 1201--1603) and the Workers' Compensation Act (77 P. S. §§ 1--1041.4), no agreement or claim for attorney's fees or other disbursements in support of any claim for compensation shall be valid and no payments shall be made pursuant thereto unless the agreement or claim has been approved by the referee or by the Appeal Board, as the case may be, by whom the matter is heard. In all such cases, the referee or the board member hearing the case shall obtain from the claimant's attorney a copy of the fee agreement or claim and a copy of any other statement or claim for disbursements to be made on account of the presentation of the case, and, after determining the proper amount to be allowed in relation to the services rendered, shall specify in the decision the amount approved for disbursement.]

§ 121.25.  [Delivery of compensation checks] Issuance of compensation payments.

   [(a)  In no event may a claimant's check for workmens' compensation or occupational disease compensation be made payable to, or delivered to, an attorney except when the attorney is the administrator or executor of the claimant's estate, a court-appointed trustee, a court-appointed guardian or acting in some other fiduciary capacity. In such cases compensation may be paid to the attorney in his capacity as administrator or executor of the estate, court appointed trustee, court appointed guardian or other fiduciary capacity. Notice of the first payment to a claimant shall be sent to counsel of record. In cases where an attorney's fee and costs have been approved by a referee or the Workmen's Compensation Appeal Board, or where the referee or board determines and awards the attorneys' fee and costs, a check in the amount of the fees and costs, separate from a compensation payment, shall be made payable to the claimant's attorney and mailed to him. The provisions of rules and regulations inconsistent with this section are repealed.

   (b)  The claimant's compensation checks shall be mailed by first-class mail to the claimant's last known address, unless the claimant has authorized another method of delivery on a form to be prescribed by the Bureau. In no event shall a claimant or his representative be required to appear at a specific place designated by the employer or insurer in order to receive his compensation payments.] Compensation payments shall be issued according to the following:

   (1)  Unless the claimant and the employer have executed an Authorization for Alternative Delivery of Compensation Payments, Form LIBC-10, or a court orders payment, a claimant's payment for workers' compensation or occupational disease compensation may not be made payable to or delivered to, an attorney unless the attorney is the administrator or executor of the claimant's estate, a court-appointed trustee, a court-appointed guardian or acting in some other fiduciary capacity.

   (2)  Notice of the first payment to a claimant shall be sent to counsel of record.

   (3)  If a workers' compensation judge or the Board approves attorneys' fees and costs, a payment for fees and costs, separate from a compensation payment, shall be made payable, and issued, to the claimant's attorney.

   (4)  An employer may not require a claimant to appear at a specific place in order to receive compensation payments.

§ 121.26.  [Required information for maximum compensation rate increase] (Reserved).

   [(a)  General. The provisions of this section set forth the information required on initial agreements and notices of compensation payable regarding the increase in compensation rates set forth in section 105.2 of the Workers' Compensation Act (77 P. S. § 25.2). The information shall be submitted on notices of compensation payable and initial agreements for all injuries occurring on or after February 3, 1975, since it is expected that some of these cases will be in active payment status on July 1, 1975.

   (b)  Purpose. The purpose of this section is to provide confirmation information to the Department of Labor and Industry as to what rate changes, if any, will occur on July 1, 1975, for injuries occurring on and after February 3, 1975.

   (c)  Information required. Required information shall be as follows:

   (1)  Statement of Wages (LIBC-494) shall be completed on cases here average weekly wage is less than $256.50 and attached to Notice of Compensation Payable (LIBC-495). Agreement (LIBC-336) shall also show complete wage information.

   (2)  If average weekly wage is $256.50 or more, wage information may be omitted.

   (3)  On agreements or notices of compensation payable for injuries occurring between February 3, 1975, and July 1, 1975, a phrase shall be inserted under ''Remarks'' or ''Further matters agreed upon'':

   ''Compensation payable on or after July 1, 1975, shall be at the rate of $_______.''

   On all injuries occurring on and after July 1, 1975, procedure shall be as outlined under 34 Pa. Code § 121.7(c) (relating to notice of compensation payable) and 34 Pa. Code § 121.8(b) (relating to agreement).]

§ 121.27.  [Violations of the provisions of the act or this chapter] Orders to show cause.

   (a)  [The provision of 1 Pa. Code Part II (relating to general rules of administrative practice and procedure) applies to proceedings involving violations of the act or this chapter.] The Department may serve an order to show cause on a respondent for an alleged violation of the act or regulations. The order to show cause will contain the particulars of the alleged violation and the procedures for filing an answer under subsection (b).

   (b)  [Whenever the Department of Labor and Industry (Department) has information, through its own investigation or through complaint by a party to the Department in writing on a form prescribed by the Department, upon which it believes that a violation of the provisions of the act or this chapter has occurred, the Department may serve upon the respondent who has allegedly violated the provisions of the act or this chapter an order to show cause why the respondent should not be found in violation of the provisions of the act or this chapter. The order will set forth the particulars of the alleged violation. A copy of the order will be sent to the employer, his insurer, and the employe or family of the employe involved in the alleged violation. The Legal Division of the Bureau of Workers' Compensation shall be deemed to be a party to be served with notice of any petition for penalties filed with the Department on the form prescribed by the Department and any other items pertinent to any proceedings on a petition. This subsection supplements 1 Pa. Code § 35.14 (relating to orders to show cause).] A written answer to the order to show cause may be filed no later than 20 days after the date that the order to show cause is served on the respondent. The answer shall admit or deny the allegations in the order to show cause and state respondent's defense. General denials that are unsupported by specific facts will not comply with this section and may be deemed a basis for entry of a final order because the respondent has raised no issues requiring further proceedings. The facts in the order to show cause may be deemed admitted if a respondent fails to file a timely answer under this subsection.

   (c)  [The order to show cause will set forth a date, time and place for a hearing for the purpose of determining whether the violation as alleged has occurred. This subsection supplements 1 Pa. Code § 35.14 (relating to orders to show cause).] The Director of the Bureau will assign the order to show cause to an impartial hearing officer who will schedule a hearing. The hearing officer will provide notice to the parties of the hearing date, time and place.

   (d)  [The order to show cause will also specify the date, place and person to be served with an answer to the order to show cause. An answer to the order to show cause shall be filed no later than 15 days following the date that the order to show cause is served on the parties as provided for in section 416 of the Workers' Compensation Act (77 P. S. § 821). This subsection supplements 1 Pa. Code §§ 35.14 and 35.37 (relating to orders to show cause; and answers to orders to show cause).] The hearing will be conducted under this section and, when applicable, 1 Pa. Code Part II (relating to General Rules of Administrative Practice and Procedure). The hearing officer will not be bound by strict rules of evidence.

   (e)  [Failure of the respondent to answer and appear at the scheduled hearing will be considered an admission of the allegations contained in the order to show cause and will form the basis for a decision that a violation of the act or this chapter has occurred.] Hearings shall be stenographically recorded and the transcript of the proceedings shall be part of the record and kept by the Department.

   (f)  [The respondent shall have the burden of coming forth with evidence showing compliance with the provisions of the act or this chapter; but the Department or the party complaining of such violation of the act or this chapter, or the Department and the complaining party, shall have the burden of proving that such violation has occurred.] If the respondent fails to appear in person or by counsel at the scheduled hearing without adequate excuse, the hearing officer shall decide the matter on the basis of the order to show cause and evidence presented.

   (g)  [In instances where the Department has not instituted proceedings as set forth in this section but where it becomes apparent during the conduct of any hearing before a referee that a violation of the provisions of the act or this chapter may have occurred, the Department shall forthwith be notified in writing of this possibility by the referee hearing the matter and by the claimant or his representative. The Department shall be given the opportunity to participate in any proceedings where a possible violation of the act or this chapter exists and where penalties under section 435(d)(i) of the Workers' Compensation Act (77 P. S. § 991(d)(i)) are or may be sought. The Department will indicate in writing within 15 days after receipt of the written notice of these possible violations whether it will participate in the penalty proceedings or not.] The Department has the burden to demonstrate, upon a preponderance of the evidence, that the respondent failed to comply with the act or regulations.

   [(h)  In the event the Department does indicate that it will participate in the penalty proceedings, the Department will receive notice of any further hearings on the matter giving rise to the penalty proceeding and shall be treated as a party to those proceedings for the purposes of notice, decision and any further appeals.

   (i)  In the event the Department indicates that it will not participate in the penalty proceedings, the Department will receive a copy of the decision of the referee as to the disposition of the penalty request and proceedings. It shall be the duty of the party to the proceedings to advise the Department as to any further appeals on the issue of penalties and the outcome of the appeals, including appeals to and decisions by the Workmen's Compensation Appeal Board and any court of competent jurisdiction.

   (j)  Notwithstanding other provisions of this section, the Department may assign a petition for penalties presented to the Department by a party to a referee for hearing and determination without the participation of the Department. If the Department will so assign a matter to a referee, the petition will contain an indication that the Legal Division of the Bureau of Workers' Compensation has reviewed the petition and has decided not to participate in the proceedings. Nothing contained in this subsection shall be construed to eliminate the requirements that the Legal Division of the Bureau of Workers' Compensation shall receive notice of other items pertinent to any proceeding on such a petition; reference should be made to subsections (b) and (i) particularly.

   (k)  In deciding whether to issue an order to show cause under subsection (b) of this section or to participate in proceedings assigned under subsection (j), the Legal Division of the Bureau of Workers' Compensation and the Department will consider at least the following:

   (1)  The nature of the offense alleged.

   (2)  The relative seriousness of the offense or violation alleged.

   (3)  The amount of compensation or penalty, or both, involved.

   (4)  The temporal duration of the alleged violation.

   (5)  The impact of the alleged violation, financially or otherwise, on the complainant.

   (6)  The repetitive pattern, if any, apparent in the alleged violation--that is, has the respondent committed this same violation or others in regard to the same case previously.

   (7)  The repetitive pattern, if any, in general in regard to this respondent and other violations, alleged or proven.

   (8)  The extent and nature of the alleged violation in relation to other violations, alleged or proven, of other respondents.

   (9)  The explanation, excuse, good faith and the like, if any, offered by the respondent and verified through investigation or otherwise.

   (10)  The workload and staff available to prosecute or participate in these proceedings.

   (11)  The priorities established, if any, given the workload and staff.

   (12)  The chance of successful prosecution or participation, including the veracity and availability of witnesses or evidence, or both, necessary to prosecute the matter.

   (13)  Other factors relevant to this decision not specifically itemized but which may become apparent in the investigation of a particular case.

   (l)  The following words and terms, when used in this subsection, have the following meanings, unless the context clearly indicates otherwise:

   (1)  Act--The Workers' Compensation Act (77 P. S. §§ 1--1041.4).

   (2)  Department--The Department of Labor and Industry, the Bureau of Workers' Compensation.

   (3)  Notice to the Department--Mailing by first class mail to the Legal Division of the Bureau of Workers' Compensation at their offices in Harrisburg.

   (4)  Referee--Workmen's Compensation referee as defined in section 401 of the act (77 P. S. § 701) or other hearing officer as appointed by the Secretary of the Department of Labor and Industry.

   (5)  Respondent--An insurer or self insurer, including the State Workmen's Insurance Fund, which may have violated the provisions of the act or this chapter.]

   (h)  This section supersedes 1 Pa. Code §§ 35.14, 35.37, 35.131 and 35.201--35.214.

§ 121.27a.  Bureau intervention and penalties.

   (a)  If the workers' compensation judge determines that penalties resulting from an alleged violation of the act or regulations may be imposed on a party under section 435 of the act (77 P. S. § 991), the workers' compensation judge may notify the Bureau in writing within 20 days of the notice of the alleged violation.

   (b)  The workers' compensation judge will include a description of the nature of the alleged violation in the notice and will provide the Bureau with an opportunity to participate in the proceeding as an intervening party. The workers' compensation judge will provide a copy of the notification to all parties.

   (c)  Within 20 days after receipt of the notice, the Bureau will notify the workers' compensation judge and the parties of its decision to participate in the proceeding or to allow the proceeding to continue without intervention. If the Bureau fails to respond to the notification within 20 days, the Bureau shall not have intervened. By not intervening before the workers' compensation judge, the Bureau has not waived its right to intervene in a different forum or following additional notice from the workers' compensation judge in the same proceeding.

   (d)  Nothing in this section shall be construed to require the Bureau to intervene in any matter or to restrain a workers' compensation judge from notifying the Bureau of a further alleged violation of the act or regulations in a case.

   (e)  This section supplements 34 Pa. Code §§ 131.121 and 131.122 (relating to penalty proceedings initiated by a party; and other penalty proceedings).

§ 121.28.  [Petitions designated as a request for supersedeas] (Reserved).

   [In any case in which a petition to terminate, modify, review or set aside notices of compensation payable, an agreement, supplemental agreement or an award under section 413(a) of the Workers' Compensation Act (77 P. S. § 774.2(a)) is designated as a request for supersedeas, supersedeas may be granted at the discretion of the referee only after a hearing has been scheduled and held under the provisions of act. Upon receipt of a petition designated as a request for supersedeas under section 413(a) of the Workers' Compensation Act, the Department shall immediately assign the petition to a referee who shall forthwith schedule a hearing to consider the request for the supersedeas and the merits of the petition. The referee hearing the case shall, within 2 days of the hearing, render a decision on the issue of supersedeas and shall dispose of the rest of the issues as soon as practicable by a written decision. This rule does not apply to petitions which operate as an automatic supersedeas under section 413(a) of the Workers' Compensation Act nor is it intended to controvert any other provisions of the act.]

§ 121.30.  [Still payable list] Section 306(h) payments (77 P. S. § 583).

   (a)  Under section 306(h) of the [Workers' Compensation Act] act (77 P. S. § 583), [insurance carriers and self-insured employers, including the State Workmen's Insurance Fund,] insurers shall [submit] have submitted a listing of all pre-March 17, 1968, cases on which compensation is [still] payable on July 1, 1975. This listing must have been received in the Bureau no later than July 1, 1975.[, and should contain the following particulars:

   (1)  Name of claimant.

   (2)  Social Security number.

   (3)  Bureau file number.

   (4)  Claimant's date of birth.

   (5)  Date of accident.

   (6)  Name of employer.

   (7)  Insurer number.

   (8)  Current compensation rate.

   (9)  Adjusted compensation rate.

   (10)  Reimbursable difference.

   (11)  Period of payment schedule.]

   (b)  [The quarterly reimbursement certification procedure shall be as follows: A notarized statement, signed by an officer of the company, containing an itemized list of payments made to all claimants, shall be submitted to the Department no later than the tenth day of the month following the quarter for which advance reimbursement payments have been made. Each itemized entry shall contain the following information:

   (1)  Social Security number.

   (2)  Claimant's name.

   (3)  Total amount paid each claimant per quarter.] If the insurer seeks reimbursement from the Bureau under section 306(h) of the act, it shall submit the following to the Bureau on a quarterly basis: a notarized statement, signed by an officer of the company, containing an itemized list of payments made to all claimants, submitted no later than the 10th day of the month following the quarter for which advance reimbursement payments have been made. Each itemized entry must contain the following information: the claimant's name, Social Security number and the total amount paid each claimant per quarter.

   (c)  Changes in a payment schedule to [any] an individual [must] shall be reported to the [Department] Bureau within 10 days of the change. The [Department] Bureau will take credit in the following reimbursable quarter for an overpayment caused by change in a payment schedule.

   (d)  For auditing purposes, every insurer shall keep records for 3 years concerning payments and reimbursements made under this section. The records shall be made available for inspection by the Bureau at reasonable times.

   (e)  If the Bureau believes that the insurer primarily liable for compensation under the act has failed to make any payment under the act and the related regulations, the Bureau may pay compensation directly to the claimant, for the portion of the compensation which is payable by the Commonwealth under section 306(h) of the act. Nothing in this section shall require the Bureau to initiate direct payments to a claimant when the insurer is making full payment of the compensation but is not seeking reimbursement under this section.

§ 121.31.  Workmen's Compensation Administration Fund.

*      *      *      *      *

   (c)  Insurance carriers shall remit to the [Department] Bureau assessment amounts as follows:

*      *      *      *      *

   (d)  If the amount of earned premium as reported to the Insurance Department, by an insurance carrier, for the preceding calendar year is less than zero, the [Department] Bureau will calculate the assessment amount as though an earned premium amount of zero were reported to the Insurance Department.

*      *      *      *      *

   (f)  Self-insured employers and runoff self-insurers shall pay assessments directly to the [Department] Bureau.

§ 121.32.  Office of Small Business Advocate.

   (a)  The [Department] Bureau may collect annual assessments imposed on insurance carriers, but not on self-insured employers or runoff self-insurers, for the purpose of funding the Office of Small Business Advocate in accordance with section 1303 of the act (77 P. S. § 1041.3). Insurance carriers shall be directly liable to the [Department] Bureau for prompt payment of assessments for the Office of Small Business Advocate, as provided in the act and this chapter.

*      *      *      *      *

§ 121.33.  Collection of special funds assessments.

   (a)  The [Department] Bureau will collect assessments for the special funds by calculating the total amount of the following:

   (1)  What each self-insured employer is liable for paying to the [Department] Bureau.

   (2)  What each insurance carrier is responsible for collecting from insured employers and remitting to the [Department] Bureau.

   (b)  Assessments for the special funds shall be imposed, collected and remitted as follows:

   (1)  The [Department] Bureau will transmit to each insurance carrier and self-insured employer a notice of assessment amount to be collected, which shall specify the amount calculated under subsection (a) and the date on which the amount is due.

   (2)  Each self-insured employer shall timely remit to the [Department] Bureau the amount calculated under subsection (a)(1).

   (3)  Each insurance carrier shall collect payment for assessments from insured employers according to the procedures defined by the approved rating organization and approved by the Insurance Commissioner and timely remit payment to the [Department] Bureau.

   (4)  The failure of any insurance carrier to receive payment from an insured employer does not limit an insurance carrier's responsibility to collect and timely remit to the [Department] Bureau the total amount calculated under subsection (a)(2).

§ 121.34.  Objections to assessments.

   (a)  A party receiving a notice of assessment amount to be collected from the [Department] Bureau may, within 15 days of receipt, object to the assessment reflected in the notice on the basis that it is excessive, erroneous, unlawful or invalid. Insured employers retain all rights provided under section 717 of the act (77 P. S. § 1035.17).

*      *      *      *      *

   (d)  An objection not conforming to this section or the act will be rejected by the [Department] Bureau. The [Department] Bureau will notify the objecting party of the specific reasons for the rejection. The objecting party shall have 30 days to cure any deficiency.

   (e)  Upon receipt of an objection which conforms to this section and the act, the Department will hold a hearing in accordance with 1 Pa. Code Part II (relating to [the general rules of administrative practice and procedure] General Rules of Administrative Practice and Procedure). After the hearing, the Department will record its findings on any objections and will transmit to the objector, by registered or certified mail, notice of the amount, if any, charged against it in accordance with the findings. The amount shall be paid by the objector within 10 days after receipt of the findings. After payment has been made, the objector may initiate an action in the appropriate court to recover the payment of the assessment or any portion thereof. [No] An insurer may not maintain an action to recover payment unless it has previously objected under subsection (a).

§ 121.35.  Annual reports of compensation paid.

   Every annual report of compensation paid made by an insurer under sections 445 and 446(e) of the act (77 P. S. §§ 1000.1 and 1000.2(e)) shall include amounts paid by an insurer for which policyholders have agreed to [reim-burse] reimburse the insurer under deductible policies issued under section 448 of the act (77 P. S. § 1000.4).

[Pa.B. Doc. No. 05-1291. Filed for public inspection July 8, 2005, 9:00 a.m.]



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