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

By WorkCompCentral

Friday, May 12, 2017 | 2170 | 2

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 Case: Southern Insurance Co. v. WCAB, No. B278412, 05/10/2017, unpublished.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...

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James Witkop May 12, 2017 06:19 AM

I don't understand why the COA would grant review of such an important issue, annul the decision but make it unpublished. The alleged harm happens frequently and especially in the trucking industry so the impact of this decision is not limited to the parties involved.

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Albert Navarra May 12, 2017 09:13 AM

Hi James. Maybe the Court decided not to publish because the issue isn't really resolved yet: "“[T]he issue whether Southern’s rescission was legally effective remains factually open and unresolved.” Maybe the case will be published when the issue is finally resolved.

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