The fund that limits payments to employees who have a prior permanent disability and later sustain additional permanent disability is called the

• A. Subsequent Injuries Fund
• B. Second Injury Fund
• C. Preexisting Disability Fund
• D. First Injury Fund

Answer: (A)

When someone already has a permanent disability and then later sustains another permanent work-related disability, California uses a special fund to share that liability. The Subsequ ent Injuries Fund is designed for this situation and serves to limit what the employer would otherwise have to pay by taking on the portion of the disability that comes from the second injury in the context of the preexisting impairment. This backstop helps keep employer liability manageable while still providing benefits to the worker. For example, if a worker has a preexisting disability and a later injury adds more impairment, the fund covers the portion attributable to the second injury, reducing the employer’s overall exposure.