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Workers compensation insurers, self-insured employers, the Special Fund and authorized claims processing representatives administering Arizona workers compensation claims may not deny COVID-19 claims without justification, according to a policy statement by the Industrial Commission of Arizona that went into effect on Friday.
“All claims must be reviewed and investigated in good faith” and “claim denials related to COVID-19, like any claim denial, must be ‘well-grounded in fact’ and ‘warranted by existing law’” or based upon a good faith argument for the extension, modification, or reversal of existing law, according to the statement.
The statement also draws on state code that says “unreasonably delaying the payment of benefits or authorization for medical benefits constitutes ‘bad faith.’”
“Like all workers’ compensation claims, a denial of a COVID-19 claim must be based upon a reasonable investigation and must be based on facts and evidence relevant to the claim,” the policy statement says.
More insurance and workers compensation news on the coronavirus crisis here.
(Reuters) — The U.S. Securities and Exchange Commission said on Thursday it has charged two companies and a chief executive officer with making misleading claims related to COVID-19, the disease caused by the novel coronavirus.