20 Cfr 61.104

20 CFR 61.104 - Reimbursement of claims expense.

• Section Number: 61.104

• Section Name: 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.