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Notice of Initiation of Compensation; Mode of Payment of Compensation

§ 53.20

Notice of Initiation of Compensation; Mode of Payment of Compensation

(a) Every insurance carrier shall report to the Industrial Accident Board and to the claimant or the claimant's attorney on Form A-1 the initial payment of compensation to the claimant within 10 days from the date of:

(1) issuance of a draft, check, or other evidence of payment; or

(2) transfer of funds electronically to the claimant's account.

(b) If such payment represents both initial and final payment, that fact shall be stated on the face of the Form A-1.

(c) Except as otherwise provided, all payments of compensation, whether periodic payments, advances, A-2 lump sum payments, or settlement payments, shall be by United States legal tender, checks, or negotiable drafts drawn on a Texas financial institution.

(d) The claimant and the carrier may agree to payment of income benefits by electronic transfer of funds from any financial institution in the United States directly into an account designated by the claimant.

(e) A carrier which routinely pays benefits by instruments drawn on out-of-state financial institutions shall:

(1) arrange for negotiation of said instruments with a Texas financial institution having offices in the major Texas cities; and

(2) file the name and locations of this financial institution with the board.

(f) Whenever a payment of compensation is made through the use of a negotiable draft of a check drawn on an out-of-state bank, the carrier shall accompany the instrument with written advice to the claimant of the carrier's office location and phone number where the claimant may call, at carrier's expense, to obtain help if necessary in cashing the instrument.

The provisions of this § 53.20 adopted to be effective November 11, 1983, 8 TexReg 4495; amended to be effective January 1, 1990, 14 TexReg 6671.

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