The Massachusetts Appeals Court on Friday ruled that a workers compensation reinsurer is entitled to reimbursement from the state Workers’ Compensation Trust Fund for certain cost-of-living adjustment payments, rejecting the fund’s attempt to deny reimbursement based on employer insolvency.
In a Jan. 30 decision that reinforces reimbursement rights for reinsurers and insurers involved in long-tail workers compensation claims when employers later become insolvent, the court reversed a Department of Industrial Accidents reviewing board ruling that had denied Employer’s Reinsurance Corporation’s reimbursement for COLA benefits paid to an injured worker.
According to Employer’s Reinsurance Corporation v. Workers’…