California Insurance Guarantee Ass'n v. Workers' Compensation Appeals Board

When a claimant seeks workers’ compensation benefits from the California Insurance Guarantee Association (CIGA) for a claim arising out of a car accident, is CIGA entitled to a credit for underinsured motorist benefits the claimant received for the same accident? Yes.

Scott Mangum, the claimant in this workers’ compensation case, was injured in a car accident. After collecting $85,000 in underinsured motorist benefits from his automobile insurance carrier, Mangum sought workers’ *361 compensation benefits for the accident. While his claim was pending, the workers’ compensation carrier for Mangum’s employer became insolvent, and CIGA stepped in to cover the obligations of the insolvent carrier. The Workers’ Compensation Appeals Board (WCAB) refused to give CIGA an $85,000 credit for the underinsured motorist benefits Mangum had received because it found “no statutory provision” for such a credit.

We conclude the statutes governing CIGA do allow CIGA to claim a credit for the underinsured motorist benefits Mangum received for the accident. Accordingly, we will annul the WCAB’s decision and remand for further proceedings.

FACTUAL AND PROCEDURAL BACKGROUND

In July 1994,…