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This entry was published on 2014-09-22
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Security where coverage is in issue
Workers' Compensation (WKC) CHAPTER 67, ARTICLE 4
§ 54-a. Security where coverage is in issue. Where the issue of policy
coverage is raised by a carrier in any hearing or proceeding before the
board, and an appeal by the carrier, or the making of an application for
review is made, although an award is made to a claimant therein against
the employer and carrier, the chairman may, nevertheless, require the
employer to deposit the amount of said award or furnish such security
therefor as may be deemed satisfactory by said chairman. If the employer
shall fail to make such deposit or give such security, the award may be
enforced promptly against said employer by the entry of judgment by and
in the name of the chairman, for and in behalf of such claimant in
accordance with the provisions of section twenty-six hereof. In the
event that the award made as against the carrier is finally affirmed,
the employer shall be entitled to the return of said security deposited
or, if the said award has been paid, to an award by way of reimbursement
against the said carrier for the amount of money paid upon the award or
judgment entered thereon to the claimant. If the award against the
carrier is finally reversed on appeal, then the carrier is relieved of
liability and not otherwise.