North Carolina Industrial Commission Returns Form 24’s To Adjusters
Is The North Carolina Industrial Commission taking the first step in making policy determination a legal matter in the Tarheel State?
Recently, I came across a few articles on how filing a Form 24 seems to be similar to practicing law. The North Carolina Industrial Commission has decided , without a chance for industry or public involvement, to equate filing an Industrial Commission form with bringing suit against the employee.
An adjuster in one of the articles went through the process of how an adjuster would have to hire an attorney then immediately remove the attorney from the file after the Form 24 hearing. The Form 24 is basically the adjuster requesting that an employee be removed from benefits, no more, no less.
If any of my readers were around in the adjusting world in the 1990’s, there was a decision by the North Carolina Supreme Court that opened all closed medical only claims for lifetime benefits. The big carriers started pulling out of the state rather quickly as one of the assumptions of the Experience Modification system is that these claims once closed usually stayed closed after a two year window.
Why I am bringing this point up is that the Experience Modification system in North Carolina – as in the 1990’s – did not take into account the litigious environment that will now exist in the state. I am not saying this is a bad turn of events to have to use defense attorney much more, but rather an unexpected one. Will this cost employers a large amount of funds?
One would have to say partially no, as this part of the Experience Modification system – better known as Allocated Expenses – ALAE – are not usually counted in promulgating an E-Mod. However, there are many more expense such as extending the Temporary Total Disability period and increased medical costs that would cost employers more in the long run.
Raleigh is our HQ so this hits very close to home. The North Carolina Industrial Commission has always been great concerning fixing these situations on an amicable basis with the help of the North Carolina Legislature.
Then again, I may be concerned about something that will never come to a full fruition. However, I wanted to point it out.
©J&L Risk Management Inc Copyright Notice