War Hazards Act Reimbursement CFR’s

[Code of Federal Regulations]
[Title 20, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR61.104]

[Page 143]

TITLE 20–EMPLOYEES’ BENEFITS

CHAPTER I–OFFICE OF WORKERS’ COMPENSATION PROGRAMS, DEPARTMENT OF LABOR

PART 61_CLAIMS FOR COMPENSATION UNDER THE WAR HAZARDS COMPENSATION ACT, AS

Subpart B_Reimbursement of Carriers

Sec. 61.104 Reimbursement of claims expense.

(a) A carrier may claim reimbursement for reasonable and necessary
claims expense incurred in connection with a case for which
reimbursement is claimed under the Act. Reimbursement may be claimed for
allocated and unallocated claims expense.
(b) The term “allocated claims expense” includes payments made for
reasonable attorneys’ fees, court and litigation costs, expenses of
witnesses and expert testimony, examinations, autopsies and other items
of expense that were reasonably incurred in determining liability under
the Defense Base Act or other workers’ compensation law. Allocated
claims expense must be itemized and documented as described in Sec.
61.101.
(c) The term “unallocated claims expense” means costs that are
incurred in processing a claim, but cannot be specifically itemized or
documented. A carrier may receive reimbursement of unallocated claims
expense in an amount of to 15% of the sum of the reimbursable payments
made under the Defense Base Act or other workers’ compensation law. If
this method of computing unallocated claims expense would not result in
reimbursement of reasonable and necessary claims expense, the Office
may, in its discretion, determine an amount that fairly represents the
expenses incurred.
(d) The Office shall not consider as a claims expense any general
administrative costs, general office maintenance costs, rent, insurance,
taxes, or other similar general expenses. Nor shall expenses incurred in
establishing or documenting entitlement to reimbursement under the Act
be considered.