Connecticut Supreme Court Ruling on Workers’ Compensation Claims
Adam V. Russo | October 16, 2008
A self-insured employer may seek reimbursement from a guaranty association for an insolvent insurer’s apportioned share of a worker’s compensation claim, according to a recent decision of the Connecticut Supreme Court. A worker sought comp benefits from his employer which was either self-insured for workers’ comp or was covered under policies issued by various carriers. Since one of these carriers had declared bankruptcy, any workers’ compensation claims made against it were being administered by the Connecticut Insurance Guaranty Association (CIGA). The employer asserted an apportionment claim against CIGA which contended that a self-insured employer may not obtain reimbursement for an insolvent carrier’s share of workers’ compensation benefits. The high court rejected this argument and held that a self-insured employer is entitled to seek reimbursement in accordance with Supreme Court precedent establishing that self-insured entities may assert claims against CIGA. (more…)
