Vickie Carlucci v. Utah State Industrial

In 1984, the Utah Legislature created the Default Indemnity Fund to pay workers, or their dependents, workmens compensation benefits when their employers are unable to pay. U.C.A. 1953, § 35-1-107(1) (Repl. Vol. 48, 1974 ed., Supp. 1985) which became effective March 29, 1984, states that the Fund is for the purpose of paying and, assuring, to persons entitled to, workers compensation benefits when an employer becomes insolvent, appoints or has appointed a receiver, or otherwise does not have sufficient funds, insurance, sureties, or other security to cover workers compensation liabilities under this chapter. If it becomes necessary to pay benefits, the fund will be liable for all obligations of the employer as set forth in Chapters 1 and 2, Title 35.