April 8, 1997 in Idaho

Self-Insurance An Option, Court Says

From Staff And Wire Reports

The Idaho Supreme Court has ruled that state or local governments have the option of self-insuring for workers compensation coverage.

In the unanimous opinion issued on Monday, the high court ruled that the Industrial Commission was wrong when it maintained that the self-insurance option was not open to the city of Boise.

But the court also held that the commission did not act inappropriately when it held that even if it believed self-insurance was an option the city’s application for that status did not meet legal requirements.

It did say the city could reapply for self-insurance status.

State law requires all employers to either obtain workers compensation coverage from an authorized insurer, such as the State Insurance Fund, or post a bond sufficient to underwrite self-insurance.

The State Insurance Fund was created to provide coverage for governments and private businesses that cannot find affordable coverage elsewhere.

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