Court Finds State Entitled to Guarantee Funds

The Supreme Court of Connecticut ruled that the state's claim for reimbursement of workers' compensation expenses from a defunct carrier was a "covered claim" for purposes of that state's insurance guarantee statutes even though the state subsequently waived reimbursement to its new carrier following denial by the guarantee association.In Connecticut Insurance Guaranty Association v. State, No. SC 17538 (Conn. 05/09/2006), Traci Carello, who had been discharged April 10, 1997 as a patient from the Elmcrest Psychiatric Institute (Elmcrest), and Karen Gagliardi, a state employee, were involved ...