Washington--The insurance industry has established reform of South Carolina's workers' compensation system as its top legislative priority in that state for this year, insurers' trade group representatives said.

But while legislation to reform the system has been introduced in both houses of the South Carolina General Assembly, prompt action is not likely, according to a staff official of the American Insurance Association.

The bills call for dissolution of the state's Second Injury Fund which pays an employer's additional insurance cost when an employee with a prior disability is injured. The intent is to put the non-disabled and disabled on an equal footing when it comes to hiring. The fund also ensures payment of workers' comp benefits to injured workers whose employers fail to comply with workers' comp law coverage provisions

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