62-1-1.3 Presumption that certain noncompensable injuries are nonwork related--Coverage under other...
Presumption that certain noncompensable injuries are nonwork related--Coverage
under other insurance policy.
If an employer denies coverage of a claim on the basis that the injury
is not compensable under this title due to the provisions of subsection 62-1-1(7)(a), (b), or (c), such
injury is presumed to be nonwork related for other insurance purposes, and any other insurer
covering bodily injury or disease of the injured employee shall pay according to the policy
provisions. If coverage is denied by an insurer without a full explanation of the basis in the insurance
policy in relation to the facts or applicable law for denial, the director of the Division of Insurance
may determine such denial to be an unfair practice under chapter 58-33. If it is later determined that
the injury is compensable under this title, the employer shall immediately reimburse the parties not
liable for all payments made, including interest at the category B rate specified in § 54-3-16.
Source: SL 1995, ch 297, § 7; SL 1997, ch 302, § 1.