Cotton States Mutual Insurance v. Smith

Benham, Judge.

Smith was an employee of the City of Enigma on the date he was injured in an automobile accident. The automobile was covered by an insurance policy issued by appellant to the City of Enigma and now provides for $50,000 PIP benefits. Cotton States paid $5,000, then filed a declaratory judgment action seeking a ruling that it was relieved of further liability by the setoff provisions of OCGA § 33-34-8. Smith and the City of Enigma both contend that since the city has no workers’ compensation insurance and is insolvent, no workers’ compensation benefits can be paid and, therefore,…