2nd DCA Publishes Ruling on Rescission of Comp Coverage

The 2nd District Court of Appeal this week ordered publication of its decision finding comp carriers can rescind coverage for employers who have made material misrepresentations in their applications for insurance. Earlier this month, the court determined that Insurance Code Section 650 allows a carrier to rescind a policy, and that there is nothing in the Insurance Code that says Section 650 does not apply to workers’ compensation insurance policies. However, the court said the Southern Insurance Co.’s unilateral decision to rescind its coverage of the EJ Distribution Corp. coul...