GENERAL REINSURANCE CORPORATION et al. , Plaintiffs and Respondents, v. ST. JUDE HOSPITAL, Defendant and Appellant. The General Reinsurance policy provides St. Jude indemnification for losses over $300,000 and defines a "loss" as "amounts actually paid by the Insured as a self-insurer under the Workers Compensation Law. "St. Jude presented testimony of its workers' compensation claims manager that in her experience section 5814 awards were very common and she "reasonably believed" they were covered by the General Reinsurance policy. The claims manager was not employed by St. Jude when the General Reinsurance policy was purchased. General Reinsurance is not obligated to indemnify St. Jude for payments made by St. Jude in excess of regular workers' compensation benefits required because St. Jude violated or failed to comply with the workers' compensation law.

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