Section 281-A:42 Failure to Make Payment of Compensation.
I. The commissioner may assess a civil penalty of up to $2,500 on any insurance carrier or self-insurer who fails, without sufficient cause as determined by the commissioner, within 21 days after notice of a claim has been received by the insurance carrier or self-insurer or 21 days from the date that benefits are due:
(a) To make payment of compensation pursuant to RSA 281-A:28 and 281-A:31, and file a memorandum of such action with the commissioner; or
(b) To deny such compensation; to file a memorandum of such action with the commissioner; and to make a copy of the memorandum available to the claimant. The memorandum shall give a valid reason for the denial and shall advise the claimant of the right to petition the commissioner for a hearing.
(c) The memorandum described in subparagraphs (a) and (b) shall be on a form prescribed by the commissioner.
II. The insurance carrier or self-insurer shall be relieved of the obligation to meet the 21-day time limit of paragraph I:
(a) If the commissioner has granted an extension of time upon showing cause; or
(b) If and to the extent that an employer, except a self-insurer, has failed to comply with the requirements of RSA 281-A:53.
III. Upon failure of any insurance carrier or self-insurer to comply with either an order for payment of compensation or an assessment of a civil penalty, the commissioner shall recover either or both in a civil action in the superior court of the county of jurisdiction. Anyone owing a civil penalty under this section shall pay it to the commissioner, who shall deposit it with the state treasurer.
IV. The commissioner shall submit to the insurance commissioner the record of an insurance carrier who consistently fails to comply with the provisions of this section. If the insurance commissioner should, upon investigation, find the carrier to be in substantial noncompliance, the commissioner shall order compliance. If the insurance carrier shall fail to comply, the insurance commissioner shall suspend or revoke such carrier's authorization to carry out the business of workers' compensation in this state. Likewise, the commissioner shall, as the commissioner deems necessary, suspend or revoke the self-insurer's permit of an employer or group self-insurer who consistently fails to comply with the provisions of this section and any rules adopted to enforce this section.
V. Any insurance carrier or self-insurer who fails to file a timely memorandum in accordance with this section and who makes late payment to the employee, shall pay interest to such employee at the same rate as for judgments under RSA 336:1, II from the date the payment was due until it is paid.
VI. In addition to paragraph V, any insurance carrier, self-insurer, or claims adjusting company who fails to file either the memorandum of payment of disability compensation or the memorandum of denial of compensation benefits in a timely manner shall be assessed a civil penalty of up to $2,500.
Source. 1988, 194:2. 1990, 254:24-27, eff. Jan. 1, 1991. 2003, 99:1, eff. Aug. 5, 2003.