The Supreme Judicial Court of Massachusetts, reversing a trial court's ruling, has decided that the Massachusetts Insurers Insolvency Fund could recover from a “high net worth” company certain workers' compensation benefits paid by the fund on behalf of the company's insolvent insurer.
|The case
In May 2003, Donna Poli, an assistant branch manager for Woronoco Savings Bank, injured her back while lifting coin-filled bags. Woronoco then was the named insured under a Workers' Compensation/Employer's Liability policy issued by Centennial Insurance Company. Woronoco notified Centennial of the injury, and Centennial began paying Poli weekly workers' compensation benefits under the Massachusetts law that provides temporary total incapacity benefits for up to three years.
On June 16, 2005, Woronoco merged with and into Berkshire Bank.
In August 2006, Poli exhausted her entitlement to the benefits, and Centennial voluntarily began payments under a different section of the law, which provides for partial incapacity benefits. Four years later, in August 2010, Poli exhausted her entitlement to those benefits, and Centennial stopped making any payments.
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