Pennsylvania Statutes Title 77 P.S. Workers' Compensation § 1061. Payment of claims against insolvent carriers; recovery against insolvent carriers

(1) A valid claim for compensation or installments thereof, heretofore or hereafter made pursuant to the Workmen's Compensation Law, as defined herein, which has remained or shall remain due and unpaid for sixty days by reason of default, after the effective date of this act, by an insolvent carrier, shall be paid from the fund in the manner provided in this act. Any person in interest may file with the commissioner an application for payment of compensation from the fund on a form to be prescribed and furnished by the commissioner. A certified copy of the award must accompany the application. The commissioner shall thereupon certify to the State Treasurer such award for payment according to the terms of the same, whereupon payment shall be made by the State Treasurer, on warrant of the Auditor General and on requisition of the commissioner. Claimants receiving benefits from the fund by virtue of Longshore and Harbor Workers' Compensation Act (44 Stat. 1424, 33 U.S.C. § 901 et seq.) awards shall be subject to the provisions of this act.

(1.1) The insolvency, bankruptcy, or dissolution of the insured shall effect a termination of security fund benefits provided hereunder for claims arising under the Longshore and Harbor Workers' Compensation Act.

(1.2) Payment of compensation pursuant to the Longshore and Harbor Workers' Compensation Act shall be made by the fund at the Federal benefit level or at the maximum State benefit level, whichever is lower.

(2) Payment of an award from the fund shall not give the commissioner of such fund any right of recovery against the employer.

(3) An employer may pay an award or a part thereof in advance of payment from the fund and shall thereupon be subrogated to the rights of the employe or other party in interest against such fund to the extent of the amount so paid.

(4) The commissioner shall be entitled to recover the sum of all liabilities of such insolvent carrier assumed by the fund from such carrier, its receiver, liquidator, rehabilitator, conservator or trustee in bankruptcy and all others, except employers, liable under any of the terms of the Workmen's Compensation Law, and may prosecute an action or other proceedings therefor. All moneys, recovered in any such action or proceedings, shall forthwith be placed to the credit of the fund which has assumed such liability by the State Treasurer, to reimburse the fund which has assumed such liability, to the extent of the moneys so recovered and paid. If and when all liabilities of all carriers for workmen's compensation losses in this Commonwealth shall have been fully liquidated, distribution shall be made to all contributing carriers of the remaining balance of such fund: Provided, however, That an insolvent carrier shall be entitled to share in the said distribution of the fund only to the extent that its distributive share of said fund is in excess of any losses paid out of said fund for its account by the treasurer, in accordance with the terms of this act.