Southern Ins. Co. v. Workers Compensation Appeals Bd.

Insured company misrepresented in its worker’s compensation insurance application that its workers traveled only within a 200 mile radius of its headquarters in California, so appeals board needed to determine whether insurer’s resulting rescission was effective.  Like other insurers, a worker’s compensation insurer may rescind its policy for misrepresentations in the insurance application.  On remand, the appeals board would have to determine whether the insurer’s rescission was effective.  The insured misrepresented that its workers traveled only within a 200 mile radius of its headquarters in California.  The insurer attempted to rescind when a worker filed a claim based on injuries suffered while traveling in Tennessee for the insured employer.

 California Court of Appeal, Second District, Division 2 (Chavez, Acting P.J.); May 10, 2017; 2017 WL 2225209

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