Reimbursement of private carrier for cost of additional compensation resulting from subsequent injury.
1. A private carrier who pays compensation due to an employee who has a permanent physical impairment from any cause or origin and incurs a subsequent disability by injury arising out of and in the course of his employment which entitles him to compensation for disability that is substantially greater by reason of the combined effects of the preexisting impairment and the subsequent injury than that which would have resulted from the subsequent injury alone is entitled to be reimbursed from the Subsequent Injury Account for Private Carriers if:
(a) The employee knowingly made a false representation as to his physical condition at the time he was hired by the employer insured by a private carrier;
(b) The employer relied upon the false representation and this reliance formed a substantial basis of the employment; and
(c) A causal connection existed between the false representation and the subsequent disability.
Ê If the subsequent injury of the employee results in his death and it is determined that the death would not have occurred except for the preexisting permanent physical impairment, any compensation paid is entitled to be reimbursed from the Subsequent Injury Account for Private Carriers.
2. A private carrier shall notify the Administrator of any possible claim against the Subsequent Injury Account for Private Carriers pursuant to this section no later than 60 days after the date of the subsequent injury or the date the employer learns of the employee’s false representation, whichever is later.
Last modified: February 25, 2006