The August 7 issue of Insurance Journal highlighted the recent decision in RPNA’s case Zurich American Insurance Company v. Country Villa Service Corp., which stated that Zurich cannot enforce side agreements that were not filed with the Workers’ Compensation Insurance Rating Bureau (WCIRB).
The article, titled “Court Decision May Impact Workers’ Comp Side Agreements in California,” dives into the issue of unfilled workers’ comp side agreements which has been a hotbed of controversy for years.
“This (the decision) now has huge repercussions that says to all policyholders in California: ‘Those programs were illegal,’” said Nicholas P. Roxborough.
Jeff Pettegrew, former head of the California Self Insurers’ Security Fund commented in the article that the ruling may be a “wake up” call for other insurers that use these agreements and that it has the potential to put millions of dollars back into the pockets of businesses. Read the article here.