§ 21-5-605 - Public Employee Claims Division. - Arkansas Statutes

21-5-605. Public Employee Claims Division.

(a) There is created a Public Employee Claims Division within the State Insurance Department.

(b) The Director of the Public Employee Claims Division shall be appointed by the Insurance Commissioner.

(c) The division is designated as the unit of state government primarily responsible for the administration of public employee workers' compensation claims in the State of Arkansas.

(d) Upon payment of compensation to or on behalf of any public employee, the division shall notify the appropriate public employer involved.

(e) (1) The division shall determine in every claim where compensation is awarded the reserve value of such claim.

(2) Annually, on June 30 of each fiscal period, the director shall prepare a report which states the total of all reserve values established for the claims filed in that fiscal period and the total amount of moneys disbursed for payment of claims during that same period.

(3) The report shall be submitted to the Insurance Commissioner between June 30 and September 30.

(f) (1) In each case where a claim for workers' compensation benefits is made under this subchapter, the division shall investigate the claim to ensure that the compensation benefits paid are justified by the facts of the claim and the reserve values for the claim established accordingly.

(2) The division shall in all appropriate cases pursue the recovery of benefits paid to public employees from third parties pursuant to 11-9-410.

(3) (A) The making of a claim for compensation against any public employer or the division for the injury or death of a public employee shall not affect the right of the public employee, or his dependents, to make claim or maintain an action in tort against any third party for the injury.

(B) In such event, the rights of the public employee, or his or her dependents, the public employer, and the division shall be governed by the provisions of 11-9-410, provided, the rights of the public employer and the division in and to amounts received from the third party by the injured public employee, or his or her dependents, as a result of either settlement with or judgment against the third party shall be absolute.