What Happens if Two Arizona Insurance Carriers Are Fighting Over Liability for My Claim?

In Arizona, if two workers’ compensation insurance carriers are fighting over liability for your claim, you may be able to receive a temporary benefit until an administrative law judge sorts out the dispute. We call this type of order a “1061K” order. This comes from Arizona statutory law. That statute says “when there is a dispute as to which employer, or insurance carrier, is liable for the payment of a compensable claim, the Commission may, by order, designate the employer or insurance carrier which shall pay the claim.”

Typically, this situation arises in Arizona work comp claims when there is no dispute as to the injured worker being injured on the job. The only fight is over which insurance carrier is responsible for the claim.

Once the case progresses through litigation and an administrative law judge issues a decision on liability, the workers’ compensation insurance carrier that is found liable may have to go back and reimburse the other work comp insurance carrier that was temporarily paying the claim under the 1061K order.

This is a prime example of how complicated Arizona industrial injury cases can be.

Please feel free to contact Fendon Law Firm for a free consultation on your work comp case. We have offices in Phoenix, Tucson, Flagstaff, Scottsdale, and Prescott.

We also handle Social Security disability cases. We are the largest family owned and operated workers’ compensation and Social Security law firm in the State of Arizona.