5-30-08 A-4399-06T1
Frappier, a New Jersey resident, was injured in an accident in New York while driving a truck that he leased to Eastern Express, Inc. The rental and services were governed by an agreement entitled "independent contractor lease." Frappier filed a petition with the Division of Workers' Compensation naming Eastern Express, Inc. and Eastern Logistics, Inc. as his employers. Acuity Insurance Company, Inc. insures Eastern Logistics, Inc. and was providing a defense subject to a reservation of its right to disclaim coverage. By leave granted, Acuity appeals from an interlocutory
order of the Division estopping Acuity "from denying coverage for truck drivers." Because Acuity was not a party to the proceeding in the Division and the judge of compensation had not determined whether Frappier was an employee or independent
contractor at the time of the accident, we conclude that it was improper for the Division to exercise its ancillary authority to address insurance coverage.
