Massachusetts Insolvency Fund is Not Liable for Reinsurance Claim

SUFFOLK, Mass. - The Massachusetts Insurers Insolvency Fund is not obligated to reimburse a workers' compensation self-insurance group under excess and reinsurance policies issued by a now-insolvent insurer because the group is an "insurer" under Massachusetts law, a state appellate court has ruled. Massachusetts Care Self-Insurance Group Inc. v. Massachusetts Insurers Insolvency Fund, No. SJC-10652 (Mass. Sup. Jud. Ct.).

The Massachusetts Supreme Judicial Court ruled Nov. 12 that the definition of "covered claim" within Massachusetts General Law c. 175D, § 1 excludes "any amount due" a workers' compensation self-insurance group such as Massachusetts Care Self-Insurance Group Inc.

In December 1995, …