Efrain Penaloza — ADJ9383866

This is a complex workers' compensation insurance coverage arbitration concerning whether a Zurich policy is 'other insurance' such that CIGA could be relieved from administering benefits for applicant Efrain Penaloza's September 20, 2013 injury. An arbitrator found that the applicant was employed by Service Staffing, LLC/CPE HR as general employer and One Stop Parts Source, LLC as special employer, that the Zurich policy was 'other insurance,' and dismissed CIGA. Zurich sought reconsideration, arguing its policy excluded employees like applicant and that CPE HR was not applicant's employer because he never completed a new hire packet. The WCAB granted reconsideration, finding the issues were poorly framed, the arbitrator made findings without explaining their basis, and the arbitrator erroneously identified two unrelated PEO entities (CPE HR and Service Staffing) as the general employer. The Board rescinded the Findings and Order and returned the matter to the arbitrator to reframe issues and issue a new decision.