Smith v. Washington Insurance Guaranty Ass'n

This is an appeal from a declaratory judgment. The dispute is between the Washington Insurance Guaranty Association (WIGA) and State Farm Mutual Automobile Insurance Company. The issue is whether WIGA is responsible for paying the share of a settlement allocated (through arbitration) to an insolvent insurer, or whether the remaining solvent insurer (State Farm) must bear that share of the settlement in addition to its own. Because the insurers did not undertake joint liability when they executed the settlement agreements, we conclude that WIGA is responsible for the insolvent insurer’s…