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Exhibit A <br />A. Claims Administration. ICS shall adhere to the following claims administration <br />standards and procedures: <br />1. ICS shall review and process reported claims for workers' compensation benefits <br />that have not been closed as of the Effective Date of this Agreement and closed <br />claims that reopen on or after the Effective Date ICS shall have no responsibility <br />other than custody of files and statistical reporting for claims closed prior to the <br />Effective Date <br />2. Determine liability for claimed injuries and illnesses in accordance with <br />California Workers' Compensation Laws. <br />3. Review and process all claims in accordance with rules and regulations <br />established by the Division of Industrial Relations, Department of Self - Insurance <br />Plans. <br />4. Establish files containing medical and factual information on each reported claim <br />together with complete accounting records and maintain same in accordance with <br />statutory time requirements. <br />5. ICS shall make all workers compensation disability payments and send all notices <br />in a timely and accurate manner and in conformance in all material respects with <br />all applicable provisions of the Califomia Labor Code and the California workers' <br />compensation laws, rules and regulations. <br />6. Determine nature and extent of permanent disability and arrange for informal <br />disability rating whenever possible to avoid Workers' Compensation Appeals <br />Board litigation. <br />7. Explain to and assist employee in completing necessary forms for permanent <br />disability ratings <br />8. Review compute and pay all informal rating, findings and awards, life pensions or <br />compromise and release settlements. <br />9. Maintain and establish reserve estimates for each reported claim. <br />10. Arrange for and supervise all necessary investigations to determine eligibility for <br />compensation benefits and/or liability of negligent, third parties. <br />11. Identify, recommend and obtain special fraud investigations after obtaining <br />advance authority from the CLIENT. <br />12. As a service to the CLIENT, ICS will report all excess claims to excess <br />reinsurance carrier, although the final responsibility for reporting such claims is <br />that of the CLIENT' s. <br />