VOL. IX NO. 7
AUGUST 2003
COMPENSATION
NEWS
MONTHLY REPORT
EN BANC DECISION OF APPEALS
BOARD DEFINES CIGA ROLE IN
TWO CONSOLIDATED CASES
relieved of liability. There is an
exception where there is a previous
Stipulation and Award or
Compromise and Release and then
CIGA is not relieved of liability.
Where there are successive injuries
there must be an apportionment of
liability including CIGA's liability for
any insolvent carrier.
Where there is more than one award
and there is a solvent carrier and
CIGA involved in the award CIGA
will be relieved of administering the
award.
Labor Code section 5412 was not
raised as an issue in these cases and
may make a significant difference
depending on the facts of each
individual case. This will need to be
analyzed based upon each cases set of
facts.
This decision involves two cases
that were consolidated for the
Workers' Compensation Appeals
Board (WCAB) to make an en banc
decision.
were two solvent carriers. The
stipulations apportioned liability
between the two carriers with the
carrier mat would become insolvent to
administer the award. When the carrier
administering went insolvent the
California Insurance Guarantee
Association (CIGA) petitioned for
dismissal.
In the second consolidated case the
applicant alleged two separate
cumulative trauma periods. The first
cumulative trauma was one carriers
sole responsibility. The second
cumulative trauma was the
responsibility of a carrier who became
insolvent and CIGA began
administering.
The WCAB consolidated for
reconsideration of both awards and
indicated that CIGA is limited to the
payment of "covered claims". They
indicated that "covered claims" does
not include claims where there is other
insurance pursuant to Insurance Code
section 1063.1 (c) (9).
In a single cumulative trauma where
there are multiple carriers CIGA is
GOMEZ V.
SANDOVAL ET. AL.
and NOKES V
PLACER SAVINGS
BANK ET. AL.
In the first case that was consolidated
for this decision there was a
Stipulation With Request For Award.
At the time of the stipulation there
CONTENTS
GOMEZ V. SANDOVAL ET. AL
and NOKES V PLACER
SAVINGS BANK ET. AL....... 1
Firm: Samuelsen, Gonzalez,
Valenzuela, Brown
Editor: Harvey Brown
Address. 18500 Von Karman # 470
Irvine, CA 92621
Phone: 949 252-1300
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