WC Employers Paying Claims Directly -- SEE 1-95 AMENDMENT ABOVE DATED AUGUST 4, 2011

ARKANSAS INSURANCE DEPARTMENT Lee Douglass Insurance Commissioner 400 University Tower Building 1123 South University Ave. Little Rock, Arkansas 72204 April 26, 1995 DIRECTIVE NO. 1-95 TO: ALL LICENSED PROPERTY AND CASUALTY INSURERS FROM: ARKANSAS INSURANCE DEPARTMENT SUBJECT: WARNING NOTICE ON WORKERS' COMPENSATION BENEFIT CHECKS 501-686-2900 One of the major categories of fraud that the Department's Workers' Compensation Fraud Investigation Unit is investigating involves claimants earning income from another employer or from self-employment while receiving temporary total disability benefits. A problem in prosecuting such cases is the claimant professing to have no knowledge of any prohibition against working and earning extra income while simultaneously receiving temporary total disability benefits. This problem is most acute where the income earned is from labor less strenuous than the work at which the claimant was injured; doing similar labor is an obviously intentional act by the claimant. At the present time, there is no warning in regard to working and earning income on any form which an injured employee may sign or have an opportunity to review. Even if a warning was placed on a notice of injury or other form, it would be easy enough to profess that the form wasn't read, but simply signed at the direction of the employer. Since claimants inevitably sign the reverse side of their benefit checks, a notice at that location will, at the very least, strengthen the ability of the Unit to prove intent and knowledge in regard to claimants working and receiving income while collecting temporary total disability benefits. Therefore, no later than 60 days from this date, all insurers offering workers' compensation coverage in the State of Arkansas are hereby directed to place the below warning notice on the reverse of all benefit checks tendered to claimants. The notice may be printed or hand stamped on the checks at the insurer's option d receiving income while collecting temporary total disability benefits. Therefore, no later than 60 days from this date, all insurers offering workers' compensation coverage in the State of Arkansas are hereby directed to place the below warning notice on the reverse of all benefit checks tendered to claimants. The notice may be printed or hand stamped on the checks at the insurer's option. WARNING This check is for workers' compensation related benefits. You must advise both the employer and Ecarrierl of any other income received or earned, including from self-employment, while receiving these benefits. Failure to do so may result in civil and/or criminal liability. -2- Inquiries concerning the above should be directed to Marty Nevrla, Director, Workers' Compensation Fraud Investigation Unit, at (501) 686-2740. E DOUGLASS INSURANCE COMMISSIONER