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Committee hears bill to let L&I administer claims after self-insurer decertification
Summary
Senate Bill 5381 would direct the Department of Labor & Industries to manage and pay claims when a self-insured employer or self-insurance group is decertified, with the decertified entity liable to reimburse the department; sponsors and L&I staff said decertification is rare but the bill addresses gaps from 2023 legislation.
Senate Labor & Commerce Committee members considered Senate Bill 5381, a Department of Labor & Industries (L&I) request bill that would authorize L&I to administer and pay workers' compensation claims after certification of a self-insured employer or self-insurance group is withdrawn, with the decertified employer required to reimburse the department.
Susan Jones, committee staff, outlined the bill's background and mechanics: self-insured employers—public or private entities that meet statutory standards—are responsible for their claims, but when certification is withdrawn certain liabilities remain. "A self…
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