National American Ins. Co. v. Texas Prop. & Cas. Ins. Guar. Ass’n

No. 03-09-00680-CV, 2013 WL 4817637 (Tex. App.-Austin Aug. 28, 2013, no pet.) (mem. op.)

We obtained a declaratory judgment for Texas Property and Casualty Insurance Guaranty Association holding that it was not liable for more than a million dollars in benefits that National American paid to two injured workers. There was a prior dispute as to the injured workers’ correct employer and therefore, whether they were insured by National American or Paula Ins. Co. While that case was pending, National continued to pay benefits and Paula was declared impaired, triggering the Guaranty Association’s obligations. It was ultimately determined that the two workers were insured by Paula Ins. Co. National then demanded reimbursement from the Guaranty Association. The Court of Appeals held that the Division of Workers’ Compensation does not have exclusive jurisdiction of a carrier’s reimbursement claim and that the Guaranty Association was not liable to National American because its reimbursement claim is not a “covered claim” under the Guaranty Act.