WC Employers Paying Claims Directly -- SEE 1-95 AMENDMENT ABOVE DATED AUGUST 4, 2011

ARKANSAS

INSURANCE

DEPARTMENT

Lee Douglass

Insurance Commissioner

400 University Tower Building

1123 South University Ave.

Little Rock, Arkansas 72204

April 26, 1995

DIRECTIVE NO. 1-95

TO:

ALL LICENSED PROPERTY AND CASUALTY INSURERS

FROM:

ARKANSAS INSURANCE DEPARTMENT

SUBJECT: WARNING NOTICE ON WORKERS' COMPENSATION BENEFIT CHECKS

501-686-2900

One of the major categories of fraud that the Department's Workers'

Compensation Fraud Investigation Unit is investigating involves claimants

earning income from another employer or from self-employment while

receiving temporary total disability benefits.

A problem in prosecuting such cases is the claimant professing to have no

knowledge of any prohibition against working and earning extra income while

simultaneously receiving temporary total disability benefits. This problem

is most acute where the income earned is from labor less strenuous than the

work at which the claimant was injured; doing similar labor is an obviously

intentional act by the claimant.

At the present time, there is no warning in regard to working and earning

income on any form which an injured employee may sign or have an

opportunity to review. Even if a warning was placed on a notice of injury

or other form, it would be easy enough to profess that the form wasn't

read, but simply signed at the direction of the employer.

Since claimants inevitably sign the reverse side of their benefit checks, a

notice at that location will, at the very least, strengthen the ability of

the Unit to prove intent and knowledge in regard to claimants working and

receiving income while collecting temporary total disability benefits.

Therefore, no later than 60 days from this date, all insurers offering

workers' compensation coverage in the State of Arkansas are hereby directed

to place the below warning notice on the reverse of all benefit checks

tendered to claimants.

The notice may be printed or hand stamped on the

checks at the insurer's option

d

receiving income while collecting temporary total disability benefits.

Therefore, no later than 60 days from this date, all insurers offering

workers' compensation coverage in the State of Arkansas are hereby directed

to place the below warning notice on the reverse of all benefit checks

tendered to claimants.

The notice may be printed or hand stamped on the

checks at the insurer's option.

WARNING

This

check

is

for

workers'

compensation

related

benefits.

You

must advise both the employer

and

Ecarrierl of any other income received or earned,

including from self-employment, while receiving these

benefits. Failure to do so may result in civil and/or

criminal liability.

-2-

Inquiries concerning the above should be directed to Marty Nevrla,

Director,

Workers'

Compensation

Fraud

Investigation

Unit,

at

(501)

686-2740.

E DOUGLASS

INSURANCE COMMISSIONER