Under Ins. Code 11580.2(h), an uninsured motorist policy may provide that coverage is reduced by any amount payable to the claimant under the workers’ compensation system.  The policy at issue, in this case, contained such a provision.  Under both the policy and the statute, the insurer’s liability is reduced by the amount that would be payable to the claimant under the workers’ compensation system whether or not the claimant actually applies for workers comp. benefits.  Furthermore, Ins. Code 11580.2(f) stays uninsured motorist arbitration proceedings until the claimant’s condition is stationary and ratable and an award or settlement of any claim for permanent disability has been entered.  Here, plaintiff applied for workers comp. benefits initially but then didn’t follow through.  The insurer didn’t breach the policy or commit bad faith by insisting that the plaintiff complete the workers’ comp. process before it proceeded with an uninsured motorist arbitration.  Plaintiff claimed $25,000 in future medical expenses which could be reduced by workers comp. benefits if the plaintiff applied for them.

California Court of Appeal, Second District, Division 4 (Manella, P.J.); November 21, 2018 (published December 18, 2018); 30 Cal. App. 5th 397