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6.1C Page 4 of 8 V. CLAIMS ADMINISTRATION CM! shall provide the following workers' compensation claims management for the Client: A. Review on behalf of Client all reports of injury as defmed by Labor Code Section 3208 and 3208.1, and make contact with injured employee within 24 hours notice of lost time injury is received. B. On each reported injury, determine those benefits, if any, that should be paid or rendered under the California Workers' Compensation Laws. Client is responsible for completion of Employer's Report of Injury within five (5) days from the date of knowledge. Client will be responsible for any penalties or assessments if claim is not reported in five (5) days from date of knowledge. C. Establish and maintain an orderly claims file on each reported claim. Each file shall be available to Client for inspection, with or without prior notice to adjusting firm. D. Maintain an estimate of the total cost of all reasonably foreseeable benefits and related expenses on each case. Each cost shall be recorded separately in the following categories: 1. Medical 2. Indemnity 3. Allocated 4. Rehabilitation E. Pay on behalf of Client from Client funds, those sums that should reasonably be paid under the California Workers' Compensation Laws for each reported claim. Any settlement in excess of the mutually agreed limit set forth in Client's Performance Standards, must be fITst approved by the Client. F. Refer to attorneys selected by the Client, cases where an employee of the Client files an Application with the California Workers' Compensation Appeals Board. It is understood that even when an Application has been filed, a substantial effort will be made by CM! to settle the claim file without assigning it to legal counsel. G. Select medical doctors, psychiatrists, psychologists, medical managers, etc., schedule medical appointments, and other services, as is reasonably necessary in the management of workers' compensation cases. H. Proceed against responsible persons, agencies and/or their agent in subrogation actions in order to recover losses suffered by Client. 1 The following fees will be billed to the file under the "allocated loss expenses" which are defined to include all fees for attorneys, witnesses, court reporters, photocopies, process servers, independent investigators, claims index bureau filing fees, any court or Workers' Compensation Appeals Board costs or filing fees, fees for depositions, surveillance, or the necessary engagement of personnel, independent of CMI in the handling of any claim subject to the proposed Agreement. Redwood City 2008-2009\word\cmi\contracts\lk Page 2 of6 06105/08