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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surety it provided to the Department. Therefore, contrary to Dellen' s assertion, its having

provided the Department with the $ 422, 853. 81 surety does not constitute a payment of benefits

under WAC 296- 15- 121( 8)( a) for purposes of showing that Dellen complied with statutory

termination claims payment requirements.

Dellen further asserts that the payment of workers' compensation benefits is the only

obligation that RCW 51. 14. 050 imposes on former self insured
- employers. This assertion is also

incorrect. WAC 296 -15- 121( 8) expressly states that an employer electing to terminate its self-

insured status must comply with all the requirements listed under WAC 296 -15- 121( 8),

including taking responsibility for new claims. WAC 296- 15- 121( 8)( a). Here, however, after

sending its January 2002 letter electing default, Dellen turned over its injured worker claims files

to the Department for administration of its injured workers' claims. And, as Dellen concedes,

No. 43636 -1 - II

after sending this letter, it stopped administering its own injured workers' claims and stopped

paying benefits.

Because Dellen did not pay benefits on its injured workers' claims incurred during its

previous self insurance
- period and it did not administer claim re- openings or new claims, we

hold that Dellen did not comply with WAC 296- 15- 121( 8)( a) and, thus, as the superior court

ruled, did not terminate its self -insured status under the Act.

2. Failure to file reports to the Department

Under WAC 296- 15- 121( 8)( b), an employer terminating its self insured
- status must

continue to file quarterly and annual reports with the Department. Dellen argues that the