MS HB1259

Grants the Workers' Compensation Commission exclusive jurisdiction over all bad faith claims handling and intentional tort claims arising from workers' compensation claim handling by employers, administrators, or insurance carriers.

Requires any pending bad faith actions to be immediately transferred to the commission upon the July 1, 2016 effective date.

Allows the commission to levy penalties up to $10,000 against parties or their attorneys for instituting, continuing, or delaying proceedings without reasonable ground, with collected penalties deposited into the Administrative Expense Fund.

Defines "bad faith claims handling" as intentional and malicious denial or substantial delay of compensation benefits without reasonable basis or reasonable belief that benefits were not currently due.

Permits the commission to award penalties as increased compensation to claimants upon finding bad faith by clear and convincing evidence, considering factors such as wrongful conduct, intent to cause harm, amount not paid, and repetition of conduct.