An insurer issues indemnity payments on a CA WC claim using an Ohio bank. This is:

An insurer issues indemnity payments on a CA WC claim using an Ohio bank. This is:

• A. Acceptable
• B. Unacceptable
• C. Ground for a 4650 penalty
• D. Acceptable, if the checks are immediately negotiable at some established place of business in the state.

Answer: (D)

The rule is about ensuring workers’ compensation payments are readily accessible in California. An indemnity check doesn’t have to be drawn on a California bank, but it must be immediately negotiable in California. If the check drawn on an Ohio bank can be promptly cashed or deposited at an established place of business located in California, that satisfies the requirement and is acceptable. This protects the claimant by guaranteeing quick access to funds, regardless of where the payor’s bank is. If the check couldn’t be negotiated immediately in California, that could cause delays or penalties. So the scenario is acceptable because the checks are immediately negotiable at a California established place of business.

The rule is about ensuring workers’ compensation payments are readily accessible in California. An indemnity check doesn’t have to be drawn on a California bank, but it must be immediately negotiable in California. If the check drawn on an Ohio bank can be promptly cashed or deposited at an established place of business located in California, that satisfies the requirement and is acceptable. This protects the claimant by guaranteeing quick access to funds, regardless of where the payor’s bank is. If the check couldn’t be negotiated immediately in California, that could cause delays or penalties. So the scenario is acceptable because the checks are immediately negotiable at a California established place of business.