Bill > H1685

This bill modifies existing Massachusetts General Laws concerning workers' compensation obligations for self-insurers, which are companies that have been approved to pay workers' compensation claims directly rather than through an insurance company. Specifically, it amends Section 65 of Chapter 152 to add a new provision, clause (h), to the list of obligations that self-insurers must meet. This new clause ensures that the Workers' Compensation Trust Fund, a state-administered fund, will cover payments for approved claims against self-insurers if the self-insurer's own financial resources, as defined by subsection (2) of Section 25A, are insufficient to pay an employee or their dependents. The bill further clarifies that when the Trust Fund makes such payments, it gains the right to seek reimbursement from the self-insurer's bonds, excess insurance policies, reinsurance policies, or through subrogation, which is the right to step into the shoes of the injured party to recover damages. Additionally, any payments made by the Trust Fund will count towards the self-insurer's retention thresholds or other conditions needed to access their own reinsurance or excess insurance. This act is considered procedural and applies to all workers' compensation claims regardless of when they occurred.