Surety Estopped To Deny Coverage

TITLE 72 WORKER’S COMPENSATION AND RELATED LAWS — INDUSTRIAL COMMISSION CHAPTER 2 SCOPE — COVERAGE — LIABILITY 72-229. Surety estopped to deny coverage. (1) Notwithstanding the provisions of sections 72-204 and 72-205 , Idaho Code, a surety which issues to an employer a policy of workers’ compensation insurance and collects a premium based upon moneys paid or to be paid a worker, or a self-insured employer which receives consideration from a worker to cover the cost of workers’ compensation coverage, shall not be permitted to plead and raise the defense that the worker, at the time of the occurrence of the industrial accident or manifestation of the occupational disease, was an independent contractor and not an employee of the surety’s insured employer or of the self-insured employer. (2)  In the event that at the time of the industrial accident or manifestation of an occupational disease the worker has obtained security for payment of compensation as provided under this law, the provisions of subsection (1) of this section shall not apply. (3)  Nothing in this section shall be construed to negate any prohibition contained in section 72-318 , Idaho Code.