Legal Question in Workers Comp in Arizona

Re: Insurance Carrier went bankrupt

First of all, I believe it is unprofessional for me to give advice to someone represented by counsel, because I don't have all the facts of your case. Therefore, nothing I say here should be construed as disagreeing with your lawyer.

Hopefully you are represented by a Board-Certified Specialist in workers' compensation law. If so, it is 99% likely that you are getting the correct advice.

When a workers' compensation carrier goes bankrupt, your rights do not change. The claim is transferred for administration to SCF of Arizona (Tucson office,) and the benefits are actually paid by the Special Fund Division of the Industrial Commission. All of your rights remain the same.

You may not understand that lump-sum settlements are not among the rights given to injured workers under Arizona law. Such settlements are achieved ONLY if BOTH the claimant and the carrier want to do so. Even a judge cannot award a lump-sum settlement! When your carrier goes bankrupt, however, I do believe that it makes it almost impossible to negotiate for a lump-sum settlement, because of the requirement that you get agreement from both SCF and the Special Fund. One or the other usually is not interested.

Also, obviously you cannot negotiate a settlement unless you have something to give up in exchange--your monthly benefit check. If you can't get a settlement, then your monthly checks should continue instead.

If you find yourself without counsel in the future, and you wish to consult with me, I will be glad to then answer other questions without charge or obligation. My office can be reached at 602-253-1789 or 800-863-4449.