IN RE: WORKERS’ COMPENSATION CLAIMS BEFORE THE DEPUTY COMMISSIONER SECTION OF THE NORTH CAROLINA INDUSTRIAL COMMISSION INVOLVING LEGION INSURANCE COMPANY AND VILLANOVA INSURANCE COMPANY. ORDER by STEPHEN T. GHEEN, Chief Deputy Commissioner. Filed: May 2, 2002.

            This matter comes on for hearing based upon the Petition of Legion Insurance Company and Villanova Insurance Company filed on April 24, 2002, requesting a ninety (90) day stay of hearings for certain workers’ compensation insurance cases.

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            Whereas, Legion Insurance Company and Villanova Insurance Company (hereinafter collectively “Legion”) are domesticated in the Commonwealth of Pennsylvania; and

Whereas, Legion is under an Order of Rehabilitation issued by the Court of the Commonwealth of Pennsylvania filed on March 28, 2002; and

Whereas, the Order of Rehabilitation of March 28, 2002 authorizes a stay of proceedings generally as to Legion and its insureds, but authorizes the Rehabilitator to process and pay claims in the discretion of the Rehabilitator; and

Whereas, Legion has prayed that it be allowed to process, accept and pay “undisputed” claims under certain terms and conditions, but petitions to invoke a stay of hearings as to Legion and its insureds in claims it disputes or denies in Legion’s sole discretion; and

Whereas, N.C. Gen. Stat. § 97-9 provides that “[e]very employer subject to the compensation provisions of this Article shall secure the payment of compensation to his employees . . . .; and

Whereas, The primary liability imposed by Chapter 97 of the North Carolina General Statutes is that of the employer and “insolvency of the insurer should not relieve the insured, nothing else appearing,” (Roberts v. Coal Co., 210 N.C. 17 (1936)) now, therefore, it is:

ORDERED:

1. That Legion’s Petition for a Stay of hearings as to Legion and its insureds is DENIED.
2. That all hearings at the Deputy Commissioner Section level of the North Carolina Industrial Commission shall proceed in due course.
3. No costs are taxed at this time.

                                S/                                
STEPHEN T. GHEEN
CHIEF DEPUTY COMMISSIONER