The results of this outcome “places claims for unpaid workers’ compensation premium in the same category as unsecured creditors, meaning the insurance company which provided the coverage to the bankrupt company is likely to collect only pennies on the dollar for unpaid premiums.”
The American Insurance Association general counsel Bruce Wood commented, “the decision is an unfortunate policy result, irrespective of whatever intellectual gymnastics that led to the majority’s result. The distinctions that the majority makes between certain kinds of employee benefit plans and workers’ compensation are really distinctions without a difference.”
If you feel so bold you can read the Courts decision on their website through the link in the first paragraph.
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