Auto Parts v. Employment Relations Division Uninsured Employers' Fund

¶1 Appellant Auto Parts of Bozeman (Auto Parts) carried workers’ compensation insurance with Montana State Fund (State Fund). State Fund canceled Auto Parts’ coverage for failure to pay a premium. Thereafter, the Uninsured Employers’ Fund (UEF), assessed a penalty against Auto Parts for failure to carry workers’ compensation insurance. Following a contested hearing, the Workers’ Compensation Court found that the Department of Labor and Industry (DLI) erred by not allowing Auto Parts to defend the UEF claim on the basis that State Fund had improperly canceled its policy. The court found that…