STORY FROM: Reinsurance & Arbitration

Reinsurer Must Assume Payments of Workers’ Compensation Benefits, Mass. Court Says

BOSTON — ACE American Insurance Co., rather than the state workers’ compensation trust fund, is required to pay benefits to an injured worker pursuant to a reinsurance policy that covered a self-insurer’s surety bond, a Massachusetts appeals court has held.

In a May 2 opinion, the Massachusetts Court of Appeals affirmed that G. L. c. 152, § 25A(2)(c), of the Workers' Compensation Act requires ACE as a reinsurer to pay benefits in the event of exhaustion of a self-insurer's surety bond.

Robert Janocha was injured while working for Malden Mills Industries Inc., rendering him permanently disabled and entitled to ...

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