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State fund must cover longtime injured worker whose company was insolvent - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers State fund must cover longtime injured worker whose company was insolvent by Louise Esola Claims Disputes , Reinsurance , Workers Comp Coverage Feb 2, 2026 The Massachusetts Appeals Court on Friday ruled that a workers compensation reinsurer is entitled to reimbursement from the state Workers’ Compensation Trust Fund for certain cost-of-living adjustment payments, rejecting the fund’s attempt to deny reimbursement based on employer insolvency. In a Jan. 30 decision that reinforces reimbursement rights for reinsurers and insurers involved in long-tail workers compensation claims when employers later become insolvent, the court reversed a Department of Industrial Accidents reviewing board ruling that had denied Employer’s Reinsurance Corporation’s reimbursement for COLA benefits paid to an injured worker. According to Employer’s Reinsurance Corporation v. Workers’ Compensation Trust Fund , the worker had been employed by Polaroid Corp. when she was injured in 1979. The company declared bankruptcy in 2004, leaving the reinsurer to cover her injury expenses, with COLA expenses covered by the state fund, per state law. The board had relied on earlier case law when it established the reinsurer’s ineligibility for reimbursement, according to the appeals court, which reversed, saying that reliance was misplaced given subsequent rulings that overturned that precedent. As explained in the latest ruling, the legislature has identified only three categories of employers ineligible for trust fund reimbursement, the court said, and neither insurers in run-off, not collecting premiums, nor insolvent employers fall within those exclusions. Administrative agencies, the court added, may not create additional exceptions not found in the statute. The court also rejected the trust fund’s argument that ERC did not qualify as an “insurer” under the Workers’ Compensation Act. Because ERC issued a reinsurance policy guaranteeing payment of workers compensation benefits and ultimately paid benefits directly, it meets the statutory definition of an insurer, the court found. The case was remanded for further proceedings. 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