Brickstreet Mutual Insurance Co. v. Zurich American Insurance Co.

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The Supreme Court answered two certified questions from the United States Court of Appeals for the Fourth Circuit in this dispute between two insurance companies as follows: (1) The Workers’ Compensation Office of Judges does not have jurisdiction over a declaratory judgment action involving a dispute between insurance carriers regarding whether one or both carriers are responsible for contributing toward payment of an employee’s workers’ compensation benefits; and (2) Pursuant to W. Va. Code 33-46A-7(a), parties to a professional employer agreement must designate either the professional employer organization (PEO) or the client-employer as the responsible party for obtaining workers’ compensation insurance coverage for covered employees. Further, when parties to a professional employer agreement designate the PEO as the responsible party for obtaining workers’ compensation insurance coverage for covered employees, the policy obtained by the PEO is primary over a policy obtained by a client-employer. Thus, coverage under a workers’ compensation policy purchased by the client-employer is triggered only if the PEO or its carrier default on their obligation to provide workers’ compensation coverage. View "Brickstreet Mutual Insurance Co. v. Zurich American Insurance Co." on Justia Law