Pay Without Prejudice OK In Some States
The pay without prejudice period occurs when the Workers Comp adjuster decides (where legal) to begin paying indemnity and medical benefits without accepting an accident as compensable. Many jurisdictions have a specific form that is filed with the governing body to allow the accept/deny decision to be forestalled until a complete investigation can be completed.
Many attorneys, carriers, and TPA‘s discourage this method of payment. I, however, have always seen this as a great risk management tool. The period can be extended for up to 90 days in some states.
The accuracy of the form that is filed is very important. Different parties including the claimant attorneys examine this type of form under a microscope. The form should be reviewed before filing with the state Workers Comp governing body.
Most states require a compensability decision within 14 days. Some states do not allow a pay without prejudice period while the adjuster further investigates the claim. Once a decision is made to admit compensability and begin paying benefits, denying the claim after this point can be futile and expensive.
An example of a pay without prejudice form can be found here.
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