Wash. Court of Appeals published opinion — D2 43636-1-II Published Opinion.pdf

Citation: Wash. Court of Appeals published opinion — D2 43636-1-II Published Opinion.pdf
Jurisdiction: Washington (state)
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Original Source: https://www.courts.wa.gov/opinions/pdf/D2%2043636-1-II%20%20Published%20Opinion.pdf ↗

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future obligations, but it continues to provide surety for claims occurring prior to
its cancellation.
d) Pay insolvency trust assessments for three years after surrender or withdrawal
of certificate.

e) Pay all expenses for a final audit of its self insurance program.
Emphasis added).

28
These pre- existing worker compensation benefits payments cannot come from the employer' s
surety fund if the employer is " terminating" its self -insured status under the Act. Rather, these
payments can come from the surety fund only if the self -insured employer " defaults." See RCW
51. 14. 060, WAC 296- 15- 121( 1)( b).

No. 43636 -1 - II

injured employee benefits and assessments and; therefore, it " terminat[ ed]" its self insured
- status

under the Act ( rather than " default[ ing] "). Br. of Appellant at 22. Dellen' s assertion that it

continued payments, however, stems from its provision of a "$ 422, 853. 81" surety to the

Department when Dellen defaulted and asked the Department to take over administration of

Dellen' s injured employees' claims. Br. of Appellant at 22. Provision of this surety neither

transformed Dellen' s default into a termination of self insured
- status nor fulfilled its obligations

for termination of self -insured status under the Act.

As we have previously noted, WAC 296- 15- 121( 8)( a) requires an employer

terminating" its self -insured status to continue using its own funds to pay benefits on injured

workers' claims previously incurred during its self -insured status; in other words, a former self-

insured employer that " terminates" its self insured
- status cannot make these payments from the