There has been much discussion surrounding the workers comp case involving RPNA Law client Personnel Group Staffing (PSG) against its insurance carrier, Protective Insurance. Recently, the California Department of Insurance ruled that the Indiana insurance carrier is not able to enforce the terms of the collateral and indemnity agreements that were part of a large deductible workers’ comp program. The insurance company neglected to file the side agreements for approval before they were used.
Nicholas Roxborough, who worked on the case, is pleased that the California Department of Insurance is protecting both employees and employers in instances where carriers fail to follow clear statutory regulations.
This decision is significant, as it is the first case to interpret regulations that the CA Department of Insurance amended in 2016 to provide increased protection for California insureds from side agreements with terms and conditions that the Insurance Commissioner never reviewed.
