SRC-MWN S.B. 1395 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1395
77R5844 KSD-DBy: Fraser
Business & Commerce
3/23/2001
As Filed


DIGEST AND PURPOSE 

Currently, Section 409.021, Labor Code, requires that an insurer begin
payment of benefits or give written notice of refusal within seven days of
receiving notice of the injury. Noncompliance with this provision is a
Class B administrative violation. However, the law provides that if an
insurance carrier does not contest the compensability of an injury within
60 days, the carrier waives all rights to contest compensability. As
proposed, S.B. 1395 provides that an insurance carrier who fails to begin
benefits or give written notice within the seven days does not waive the
carrier's right to contest the compensability of the injury within the 60
day time frame.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 409.021, Labor Code, to provide that an insurance
carrier who fails to begin the payment of benefits or file a notice of
refusal on or before the seventh day after the date on which the insurance
carrier is notified of the injury does not waive the carrier's right to
contest the compensability of the injury but commits an administrative
violation subject to Subsection (f). 

SECTION 2. Effective date: upon passage or September 1, 2001.