§ 28-53-8 - Limitations on payments to injured employees.
SECTION 28-53-8
§ 28-53-8 Limitations on payments toinjured employees. – (a) Where the director determines by experience or other appropriate accountingand actuarial methods that the reserves in the fund are insufficient to pay allclaims presented or pending, the director shall petition the workers'compensation court for an order to make appropriate, proportionate reductionsin the payments being made to injured employees by the fund or to suspend allpayments to injured employees until such time as the reserves maintained by thefund are sufficient to resume the payment of benefits. The matter shall beheard by the chief judge. If the court determines that the monies held by thefund are insufficient to fully pay all claims as they fall due, the court shallissue an order directing that a proportionate reduction be made in the paymentsmade to those employees receiving benefits from the fund. In considering thefund's request for relief, the court shall give due weight to the policy of theworkers' compensation act that benefits are to be paid weekly and that theunwarranted reduction or interruption in the employee's weekly compensationbenefit will impose financial hardship upon the injured worker.
(b) The chief judge shall hear the director's petition withintwenty-one (21) days of the date the matter is filed with the court. Thepetition shall set forth the names and addresses of each employee who may beaffected by the reduction in benefits and the court shall provide notice toeach employee. The attorney general shall appear on behalf of the employeesreceiving benefits from the fund and shall take such action as he or she feelsis necessary to protect the rights of the injured employees.
(c) In the event that the court determines that a reductionor suspension of payments is necessary to maintain the fiscal integrity of thefund, the court shall schedule a mandatory review date to determine whether thefinancial status of the fund warrants a continuation of the order reducing suchpayments and shall reinstitute payments only upon finding that the reservesmaintained by the fund are sufficient to pay all future claims as they fall due.