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

In California Ins. Guarantee Assn. v. Workers’ Comp. Appeals Bd. (Weitzman), 1 and California Ins. Guarantee Assn. v. Workers’ Comp. Appeals Bd. (Hooten), 2 this court held that California Insurance Guarantee Association (CIGA) is not an insurer, and that contribution cannot be sought from CIGA by an “other insurer.” Here, CIGA paid an injured worker *528 temporary workers’ compensation benefits under similar circumstances. We conclude that, under the workers’ compensation law of California, an other insurer is jointly and severally liable to pay these benefits. (Lab. Code, § 3200 et seq.) It follows that CIGA is entitled to full reimbursement from that other insurer, State Compensation Insurance Fund (SCIF). This is so because SCIF is jointly and severally liable to pay such benefits.

In this case, a worker suffered a specific injury to his left knee. He subsequently sustained continuous trauma (CT) to the same knee. The workers’ compensation carrier insuring the first injury became insolvent while both claims were pending, and it was succeeded by CIGA. SCIF is admittedly responsible to insure the CT. Nonetheless, CIGA paid for all the nonpermanent disability indemnity…