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California: Agreement Between Two Insurers Apportioning Liability Does Not Alter Nature of Joint and Several Obligation

March 25, 2016 (1 min read)

Two workers’ compensation insurers were jointly and severally liable to pay workers’ compensation benefits regardless of a compromise agreement between the two insurers apportioning liability. Approval of the compromise agreement by the WCAB did not operate so as to alter the nature of their joint and several obligations. Accordingly, where one of the two became insolvent, the policy issued by the solvent insurer was “other insurance” within the meaning of Calif. Insurance Code § 1063.1(c)(9), and the California Insurance Guarantee Association had no liability. The solvent insurer was, therefore, liable for the entire obligation.

Thomas A. Robinson, J.D., the Feature National Columnist for the LexisNexis Workers’ Compensation eNewsletter, is the co-author of Larson’s Workers’ Compensation Law (LexisNexis).

LexisNexis Online Subscribers: Citations below link to Lexis 

See California Ins. Guar. Assoc. v. Workers’ Comp. Appeals Bd., 2016 Cal. App. LEXIS 213 (March 22, 2016)

See generally Larson’s Workers’ Compensation Law, § 102.04

Source: Larson’s Workers’ Compensation Law, the nation’s leading authority on workers’ compensation law.

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