2nd DCA Clarifies Carrier's Ability to Rescind Coverage to Employer

The 2nd District Court of Appeal ruled that a comp carrier can rescind its coverage to an employer if the employer made material misrepresentations as to its business operations in its application for coverage. Case: Southern Insurance Co. v. WCAB, No. B278412, 05/10/2017, unpublished. Facts: The EJ Distribution Corp. filed an application for workers’ compensation insurance coverage in December 2008. The application indicated that EJ was a concession trucking company, responsible for moving containers, but that it did no loading or unloading on those containers. The application also s...