Court Clarifies Meaning of 'Default' Under Self-Insurance System

The Washington Court of Appeals, in a case of first impression, ruled that a self-insured employer that had deposited more than enough money with the Department of Labor and Industries to cover the cost of its outstanding workers' compensation claims once it ceased doing business was not entitled to a refund of the surplus surety deposit because it had "defaulted" on its other obligations under the Industrial Insurance Act.In a unanimous panel decision issued last Tuesday, the court concluded that a self-insured employer will be in default not only if it fails to pay workers' compensat...