Pinell v. Patterson Services, Inc.

WATSON, Justice.

The issue is whether the disability insurer of an employee can claim credit against its policy for compensation benefits paid to the employee which are later refunded to the compensation carrier from a tort settlement.

Defendant, Pan American Life Insurance Company (PALIC), issued a group accident and sickness policy to Patterson Services, Inc.,1 plaintiff Erroll Pinell’s employer. The PALIC policy is contributory, paid jointly, half and half, by the employer and the employee. It is designed to pay disability benefits unless a workers’ compensation law imposes those costs on…