SWIF Unsuccessful In Voiding Policy On Allegation Of Employer Misrepresentation

In SWIF v. WCAB (Hering, et al.) the Claimant was found by the WCJ to be an employee of the Employer while working as a parcel delivery person. Upon SWIF's review of the policy, they found the Employer was charged a premium based on a nominal estimated payroll of $1,000.00 for parcel delivery persons, category 808, and SWIF resisted the claim arguing SWIF relied on an Employer representation to its detriment, therefore voiding the policy.

The evidence revealed there is a system of checks and balances through The Pennsylvania Compensation Rating Bureau and the Insurance Department that prevent a category being taken off the policy without reason. In this case, the procedure had been complied with. Based on information including the Employer's computerized payroll printouts, SWIF had received permission to leave category 808 off. SWIF nevertheless issued the policy with this category and assumed the risk of this claim.