GBS Escapes Coldiron Sanctions; Others Warned

In March, the California WCAB issued an en banc decision in Coldiron vs. Compuware;Gallagher Bassett holding that because a TPA failed to notify the WCAB about an insurance arrangement for 6 years the employer was liable as a party defendant rather than CIGA when the carrier became insolvent. Continuing the saga, in a decision published yesterday, the WCAB in another en banc decision has allowed substitution of CIGA in place of the employer (but keeping the employer as a party to allow CIGA to explore other insurance coverage issues). The WCAB however repeated its warn...