ADJ11935974 · August 25, 2026

The Appeals Board found that only the insurer with valid and collectible workers’ compensation coverage (State Farm) is liable under Insurance Code section 11590, rejecting State Farm’s argument for equitable contribution from Underwriters.

From the decision · page 89.) The real question was whether there existed dual policies and if so, whether the policy at the Temecula location (State Farm) or the Truckee location (Underwriters) applied. State Farm argues “equitable contribution” requires application of both policies, but we do not find their argument to be persuasive or supported by existing workers’ compensation law. Further, although State Farm believes that both insurers share equal liability, under the clear language of Insurance Code section 11590 liability falls on the policy with existing, valid, and collectible workers’ compensation coverage—i.e. State Farm. Accordingly, we deny defendant State Farm’s Petition.

Decedents were employed by Heather Dawn Petersen at her residences in Temecula and Truckee, California, and sustained injuries resulting in their deaths on March 30, 2018, while transporting Petersen's work vehicle.

Favours neutral

Established the employment relationship and injury context relevant to coverage determination under workers’ compensation insurance.

State Farm provided valid and collectible workers’ compensation insurance coverage for the Temecula residence at the time of injury/death, while Underwriters’ policy for the Truckee residence was liability insurance without workers’ compensation endorsement.

Favours Defendant prevailed

Determined that only State Farm’s policy applied for workers’ compensation coverage, excluding Underwriters’ liability policy.

From the decision · page 4The parties submitted as joint exhibits, the JF&O issued on June 10, 2021; Compromise and Release agreements dated January 4, 2022, and corresponding OACRs; Underwriters’ policy of insurance dated June 15, 2017; and the transcript of the July 8, 2020 deposition of Petersen. State Farm also submitted a notice of denial dated February 7, 2019 and a letter dated February 25, 2011 from Wilson Elser. On June 2, 2026, the WCA issued Findings of Fact admitting into evidence all proffered exhibits, and accepted the parties’ stipulations, including: that while employed by homeowner/employer Petersen on March 30 2018, decedents sustained injuries AOE/COE resulting in their deaths; at the time of the said injuries/deaths, decedents were employed by Petersen at her residences in Temecula and Truckee, California; on March 30, 2018, the Temecula residence was insured by State Farm and the policy provided valid and collectible workers’ compensation coverage for the injuries/deaths; the Truckee residence was insured by Underwriters and said policy was for liability insurance, which provided specific coverage for dwelling, other structures, personal property, loss of use, personal liability, and medical payments, but contained no “workers[’] compensation endorsement” for separate and distinct workers’ compensation

Labor Code section 5275

Labor Code section 5275

Coverage issue subject to mandatory arbitration under this section.

From the decision · page 3The FA&O further noted that the issue of coverage was subject to mandatory arbitration pursuant to Labor Code 2 section 5275. On November 7, 2022, State Farm and applicant entered into two separate Compromise and Release agreements for settlement of her dependency claims. The Orders Approving Compromise and Release (OACRs) were issued on November 16, 2022. On January 3, 2023, State Farm filed a Petition for Contribution/Reimbursement seeking contribution and/or reimbursement from Underwriters. Thereafter, State Farm and Underwriters attempted to proceed with arbitration, and after the issuance of multiple panels, Natt Alschuler was appointed by the WCJ as the WCA on December 5, 2024. Arbitration was held on May 1, 2026. At arbitration, the parties stipulated to the following: that while employed by homeowner Petersen on March 30 2018, decedents sustained injuries AOE/COE resulting in their deaths; at the time of the said injuries/deaths, decedents were employed by Petersen at her residences in Temecula and Truckee, California; on March 30, 2018,

Insurance Code section 11590

Insurance Code section 11590

Liability falls on the policy with existing, valid, and collectible workers’ compensation coverage; no dual or joint employment coverage applies.

From the decision · page 89.) The real question was whether there existed dual policies and if so, whether the policy at the Temecula location (State Farm) or the Truckee location (Underwriters) applied. State Farm argues “equitable contribution” requires application of both policies, but we do not find their argument to be persuasive or supported by existing workers’ compensation law. Further, although State Farm believes that both insurers share equal liability, under the clear language of Insurance Code section 11590 liability falls on the policy with existing, valid, and collectible workers’ compensation coverage—i.e. State Farm. Accordingly, we deny defendant State Farm’s Petition.