California Insurance Guarantee Ass'n v. Workers' Compensation Appeals Board
Opinion
Opinion
Nott, J.
A workers’ compensation judge (WCJ) determined that the California Insurance Guarantee Association (CIGA) was obligated to pay workers’ compensation benefits awarded to an injured employee, Thomas Conces, after CIGA was called upon to meet the obligations of an insolvent workers’ compensation carrier, Homeland Insurance Company (Homeland). The Workers’ Compensation Appeals Board (Board) denied CIGA’s petition for reconsideration. The WCJ and the Board ruled that Homeland was estopped to deny insurance coverage to Blue Jay Enterprises, Inc., the employer of the injured worker. CIGA contends, among other things, that the WCJ and the Board erred because CIGA has no statutory liability for (1) a claim against an insolvent insurer based on obligations created by estoppel to deny workers’ compensation insurance coverage or (2) obligations of an insolvent insurer that allegedly arose because of the tortious negligence of an agent of the insolvent insurer.
The case presents issues of first impression. As we shall explain, we are unpersuaded by CIGA’s contentions, and we affirm the Board’s order denying reconsideration.