When an injured employee's attorney requests that payments be sent to the attorney's office, what is the proper action?

Prepare for the California Self‑Insurance Plans (SIP) Exam with our interactive quiz. Benefit from multiple-choice questions, detailed explanations, and essential tips to enhance your knowledge and succeed in your exam!

Multiple Choice

When an injured employee's attorney requests that payments be sent to the attorney's office, what is the proper action?

Explanation:
Payments from a California SIP should be made to the injured employee, not to the attorney, unless there is a court-approved fee lien or other approved mechanism to pay fees from the benefits. When the employee’s attorney requests the payments be sent to the attorney’s office, the proper action is to continue making the indemnity payments directly to the employee. The attorney’s fees can only be deducted or disbursed from the benefits if there is a valid lien or order allowing it; otherwise, sending payments to the employee preserves the employee’s rightful benefit and avoids misdirecting funds.

Payments from a California SIP should be made to the injured employee, not to the attorney, unless there is a court-approved fee lien or other approved mechanism to pay fees from the benefits. When the employee’s attorney requests the payments be sent to the attorney’s office, the proper action is to continue making the indemnity payments directly to the employee. The attorney’s fees can only be deducted or disbursed from the benefits if there is a valid lien or order allowing it; otherwise, sending payments to the employee preserves the employee’s rightful benefit and avoids misdirecting funds.

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