How should you reserve for the 2004 injury when a second injury occurs after a prior PD award?

• A. 100% less 25%
• B. 100%
• C. 25%
• D. Notify the excess carrier.

Answer: (C)

When a second injury happens to a worker who already has a permanent disability, the liability for the combined disabilities is shared with the Second Injury Fund, and the employer’s reserve for the new injury reflects only the portion that remains attributable to that new injury after considering the prior impairment. In this scenario, the prior permanent disability award is 25%, so the reserve for the 2004 injury is set at 25% to represent the portion the employer is still responsible for. The remainder, potentially covered by the Second Injury Fund, would handle the additional impairment that arises from the combination of injuries. Therefore, reserving 25% aligns with how second-injury scenarios allocate exposure between the employer and the fund.