Insurance Coverage: Defendant’s motion for summary judgment granted after proving that applicable insurance policy contained a permissible provision reducing underinsured motorist benefits to the extent that the plaintiff receives workers’ compensation benefits

The defendant, CSAA Affinity Insurance Co., moved for summary judgment on the plaintiff’s claim for uninsured motorist coverage on the grounds that there is no genuine issue of material fact that the plaintiff has already recovered workers’ compensation benefits that exceed the policy limit. This case arose out of motor vehicle accident in which the plaintiff, who was operating his vehicle in the course of  his employment,  was hit from behind by another vehicle. The plaintiff sued Liberty Mutual Insurance as the underinsurance provider for the vehicle he was operating and against CSAA as the underinsurance provider for the plaintiff’s personal auto insurance policy. The plaintiff withdrew his claim against Liberty Mutual, leaving only his claim against CSAA. Plaintiff’s policy with CSAA had underinsured bodily injury liability limits of $250,000 per person. The policy further provided that “[t]he limit of liability shall be reduced by all sums: (1) paid because of the bodily injury by or on behalf of any persons or organizations who may be legally responsible. This includes all sums paid under Part I; and (2) paid or payable because of the bodily injury under workers’ compensation law or similar law.”

CSAA claims that the governing insurance policy contains a permissible provision which reduces underinsured motorist benefits to the extent that the plaintiff received workers’ compensation benefits. More specifically, CSAA argues that the net limit of CSAA’s potential liability is $200,000 since the plaintiff received $50,000 from the at fault party. Thus, CSAA contends that because the plaintiff has received more than $450,000 in workers’ compensation benefits, there is a complete set off of CSAA’s potential liability. The plaintiff, in opposition, argues that the provision in the policy is unenforceable because he has not received any damages for lost wages or pain and suffering from workers’ compensation. The plaintiff further argues that the provision is an overly broad and unjust interpretation of Section 38a-334-6(d)(1) of the Regulations of Connecticut State Agencies. Finally, the plaintiff argues that the workers’ compensation benefits should not be considered as damages, relying on the fact that workers’ compensation benefits are not considered collateral sources for the purpose of General Statutes § 52-225a.

Upon reviewing the law, affidavits, and arguments from both parties, the Superior Court finds that the defendant is entitled to a reduction for workers’ compensation benefits and that the CSAA policy is enforceable. The court explained that CSAA’s policy contains language implementing the limitation found in Section 38a-334-6(d)(1)(B) of the Regulations of Connecticut State Agencies which states that “[t]he limit of liability shall be reduced by all sums … [p]aid or payable because of the bodily injury under any workers’ compensation law or similar law.” Multiple courts have held that the language of this Section allows for a reduction of benefits in certain circumstances, such as the present case. As the Connecticut Supreme Court noted, the established uninsured-underinsured law in Connecticut is embodied in General Statutes § 38a-336 which “does not require that uninsured motorist coverage be made available when the insured has been otherwise protected … or when the uninsured motorist has other resources available to protect the insured…” The court held that the governing policy contained language which has been found to be clear and unambiguous and permitted under Section 38a-334-6(d)(1)(B). Therefore, there is no issue of material fact that the controlling CSAA policy contains permitted limiting parameters for sums paid or payable under workers’ compensation. Accordingly, the court granted CSAA’s motion for summary judgment. Cornelio v. Liberty Mut. Ins. Co., No. MMX-CV-21-6032829-S, 2024 WL 2719992 (Conn. Super. Ct. May 21, 2024)