California Labor Code 3744 – (a) (1) The fund shall have the right and obligation to …
(a) (1) The fund shall have the right and obligation to obtain reimbursement from an insolvent self-insurer up to the amount of the self-insurer’s workers’ compensation obligations paid and assumed by the fund, including reasonable administrative and legal costs. This right includes, but is not limited to, a right to claim for wages and other necessities of life advanced to claimants as subrogee of the claimants in any action to collect against the self-insured as debtor. For purposes of this section, “insolvent self-insurer” includes the entity to which the certificate of consent to self-insure was issued, any guarantor of the entity’s liabilities under the certificate, any member of a self-insurance group to which the certificate was issued, and any employer who obtained employees from a self-insured employer under subdivision (d) of Section 3602.
(2) The Legislature finds and declares that the amendments made to this subdivision by the act adding this paragraph are declaratory of existing law.
Terms Used In California Labor Code 3744
- County: includes "city and county. See California Labor Code 14
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Director: means the Director of Industrial Relations. See California Labor Code 3741
- employer: means :
California Labor Code 3300
- Fund: means the Self-Insurers' Security Fund established pursuant to Section 3742. See California Labor Code 3741
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Insolvent self-insurer: means a private self-insurer who has failed to pay compensation and whose security deposit has been called by the director pursuant to Section 3701. See California Labor Code 3741
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Member: means a private self-insurer which participates in the Self-Insurers' Security Fund. See California Labor Code 3741
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means any person, association, organization, partnership, business trust, limited liability company, or corporation. See California Labor Code 18
- Trustees: means the Board of Trustees of the Self-Insurers' Security Fund. See California Labor Code 3741
- Venue: The geographical location in which a case is tried.
(b) The fund shall have the right and obligation to obtain from the security deposit of an insolvent self-insurer the amount of the self-insurer’s compensation obligations, including reasonable administrative and legal costs, paid or assumed by the fund. Reimbursement of administrative costs, including legal costs, shall be subject to approval by a majority vote of the fund’s trustees. The fund shall be a party in interest in any action to obtain the security deposit for the payment of compensation obligations of an insolvent self-insurer.
(c) The fund shall have the right to bring an action against any person to recover compensation paid and liability assumed by the fund, including, but not limited to, any excess insurance carrier of the self-insured employer, and any person whose negligence or breach of any obligation contributed to any underestimation of the self-insured employer’s total accrued liability as reported to the director.
(d) The fund may be a party in interest in any action brought by any other person seeking damages resulting from the failure of an insolvent self-insurer to pay workers’ compensation required pursuant to this division.
(e) At the election of the Self-Insurers’ Security Fund, venue shall be in the Superior Court for the State of California, County of Sacramento, for any action under this section. All actions in which the Self-Insurers’ Security Fund and two or more members or former members of one self-insurance group are parties shall be consolidated if requested by the Self-Insurers’ Security Fund.
(Amended by Stats. 2012, Ch. 363, Sec. 24. (SB 863) Effective January 1, 2013.)