Fremont Indemnity Co. v. Workers' Compensation Appeals Board

In this case we are asked to decide which insurance carrier is liable for an increased rate of permanent disability indemnity when the Workers’ Compensation Appeals Board (board) finds a combined disability based on several injuries that straddle a rate change. We find that the insurance carrier for each injury is liable for its total percentage of liability found, and accordingly annul the board’s decisions in these matters.

Facts and Procedural History

Applicant was employed as a working carpenter foreman by Lew Jones Construction Company (Lew Jones) from 1965 through January 1984. During that time he sustained several industrial injuries to his back and neck, and filed a number of separate applications for workers’ compensation benefits. Lew Jones was insured for purposes of workers’ compensation by Argonaut Insurance Company (Argonaut) through December 31, 1981, by Allianz Insurance Company in 1982, and by Fremont Indemnity (Fremont) from January 1, 1983, through applicant’s last day of employment with Lew Jones.

One of the applications, case number SJ 74448, resulted in a stipulated permanent disability award against Argonaut in July 1981 of 28% percent, payable…