Ciga

INTRODUCTION

After the Employment Development Department (EDD) paid temporary unemployment compensation disability (UCD) benefits to disabled workers Harry White and Francisco Torres, EDD filed lien claims for reimbursement with the Workers’ Compensation Appeals Board (Board). The insurers for White’s and Torres’s employers were insolvent. Under applicable California law (Ins. Code, § 1063 et seq.), California Insurance Guarantee Association (CIGA) had assumed the insolvent carriers’ obligations, but refused to satisfy EDO’s liens. CIGA argued it was only required to pay a “covered claim” and FDD’s liens are excluded from the definition of “covered claims” as they are obligations to the State of California. (Ins. Code, § 1063.1, subd. (c)(4).) CIGA also relied on the decision in California Ins. Guarantee Assn. v. Workers’ Comp. Appeals Bd. (2004) 117 Cal.App.4th 350 [ 12 Cal.Rptr.3d 12 ] (Karaiskos).) In both the Torres and White cases, the Board ruled against CIGA. The Board relied on Viveros v. North Ranch Country Club (2002) 67 Cal.Comp.Cases 900 (in bank) and reasoned that Karaiskos applied only to EDD liens litigated separately after the injured worker and the…