Franklin v. Superior Casting, 24 A.3d 1233

claimant Willie Franklin, a Superior Casting employee (1963–1977), develops silicosis and files a workers' compensation claim in 2003.
Superior's coverage was provided by Liberty Mutual (1963–1964) and American Mutual Liability Insurance Company (1964–1977); American Mutual later becomes insolvent.
The Connecticut Insurance Guaranty Association (the association) inherits obligations for covered claims against the insolvent American Mutual.
Under § 31-299b, the last insurer on the risk is initially liable, with right to reimbursement from earlier insurers in proportion to their shares.
The commissioner and board held the association initially liable for Franklin’s benefits as the last insurer on the risk, with Liberty Mutual ordered to reimburse the association for its proportionate share.
The defendant (Guaranty Fund Management Services on behalf of the association) appeals, arguing exhaustion requirements of the guaranty act bar the association's liability.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Does §31-299b apply to the association when an insolvent insurer was the last on the risk?	association liable as last insurer per §31-299b	exhaustion/classification under guaranty act undermines association liability	association liable under §31-299b
Does exhaustion from §38a-845(a) defeat or limit the association’s apportionment liability?	exhaustion does not bar association liability	exhaustion priority to solvent insurer conflicts with apportionment	exhaustion does not conflict with apportionment; association remains liable to extent of covered claim
Is the American Mutual claim a covered claim and not excluded by §38a-838(5)?	claim is a covered claim under guaranty act	not excluded; reliance on exhaustion rules	claim is a covered claim; not excluded from association's liability
Does the guaranty act require shifting all liability to solvent insurers to avoid association liability?	no automatic shift; association bears liability where appropriate	policy favors shifting to solvent insurers to protect guaranty fund	no automatic shift; association liability remains under guaranty act

Hunnihan v. Mattatuck Mfg. Co., 243 Conn. 438 (1997) (exclusion of insurer's reimbursement where claim is brought for the insurer's benefit)
Esposito v. Simkins Industries, Inc., 286 Conn. 319 (2008) (apportionment permitted when employer is last on risk and not an insurer)
Giglio v. American Economy Ins. Co., 278 Conn. 794 (2006) (guaranty act liability must align with statutory scheme; cannot shift automatically)
Doucette v. Pomes, 247 Conn. 442 (1999) (guaranty act framework; exhaustions tied to preventing windfalls)
Connecticut Ins. Guaranty Assn. v. Union Carbide Corp., 217 Conn. 371 (1991) (exhaustion/nonduplication aims to avoid windfalls, not to deny covered claims)
Robinson v. Gailno, 275 Conn. 290 (2005) (exhaustion under §38a-845(a) when uninsured motorist policies in play)