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SJC hears dispute over whether insurers in runoff can claim workers' compensation reimbursements
Summary
The Supreme Judicial Court heard arguments over whether an insurer that stopped writing new policies and entered runoff remains eligible for second-injury reimbursement from the state Workers' Compensation Trust Fund. Counsel for Arrowood said the statute allows reimbursement; the Trust Fund argued a statutory gap and administrative concerns.
The Supreme Judicial Court heard oral argument in Arrowood Indemnity Company v. Workers' Compensation Trust Fund over whether an insurer that has stopped writing new policies and entered runoff remains eligible for second-injury reimbursement from the Commonwealth's workers' compensation trust fund.
Attorney Eric Smith, representing Arrowood Indemnity Company, told the court Arrowood "has pursued this case because we believe that the earlier decisions in Panu affirmed by Home ... were wrongly decided." Smith argued the text and structure of the workers' compensation statutes show no bar to reimbursement for insurers in runoff and that assessments continue to flow into the trust fund through successor insurers. "There's no provision in the statute that prohibits reimbursement to insurance companies run off or that requires an…
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