Insurer not allowed to sue another carrier for improper cancellation of policy

A worker died in a work-related incident and the survivors sought workers’ compensation benefits from the direct employer’s insurer. At the time of the accident, the insurance had lapsed for a nonpayment of premium, so the insurer declined to pay for funeral expenses. The worker’s survivors also sought coverage from the insurer for the statutory employer. The second insurer also denied coverage on the grounds that the first insurer had not properly canceled its policy and should be responsible for benefits. The Colorado Court of Appeals held that the second insurer lacked standing to sue regarding the insurance cancellation procedures.