Opinion ID: 1584476
Heading Depth: 2
Heading Rank: 1

Heading: whether the workers' compensation policy of insurance between the travelers insurance company and twin river homes, inc., was in effect on the date of bobby's injury.

Text: Although the workers' compensation insurance policy period between Travelers Insurance and Twin River was contracted to extend to June of 1988, the carrier notified Twin River that it was canceling coverage under the insurance policy effective September 10, 1987, because of non-payment of premiums. That September 10, 1987, cancellation date would pre-date the October 6, 1987, injury date. However, it is uncontroverted that the insurance carrier, Travelers Insurance, did not comply with Miss. Code Ann. § 71-3-77 (1989). That statute requires that a carrier give a 30-day notice of intent to cancel workers' compensation insurance coverage to both the Commission and the insured prior to cancellation of such insurance. That statute states, inter alia, that: No such policy shall be cancelled by the insurer within the policy period until a notice in writing shall be given to the commission and to the assured.... No such cancellation shall be effective until thirty (30) days after service of such notice. ... Miss. Code Ann. § 71-3-77 (1989) (emphasis added). The discovery documents established the carrier's non-compliance with Miss. Code Ann. § 71-3-77 (1989). The pertinent request for admission and the carrier's response to that request state as follows: Request No. 5: Admit that Travelers failed to give the thirty (30) day prior notice of cancellation, in writing, to the Mississippi Workers' Compensation Commission. Response: Admitted, although it is denied that such notice was necessary to effectuate cancellation of said policy. (emphasis added). Therefore, it was established that the carrier did not comply with the statute and that fact was not controverted. As a consequence, all that need be ascertained in order to decide this issue is whether the carrier was required to give notice to the Commission before cancellation was effective. In the case before us today, it is unnecessary to consider more than the terms of the insurance policy between the carrier and Twin River. That policy contained a specific term which allowed modification or supplementation of the policy's cancellation provision. The particular term at issue provided that: Any of these provisions that conflicts with a law that controls the cancellation of the insurance in this policy is changed by this statement to comply with that law. Twin River was an Alabama corporation licensed to do business, and doing business, in Mississippi. The workers' compensation portion of Twin River's insurance policy specifically provided coverage for it while conducting business in Alabama. Another provision, the all states endorsement, provided identical coverage to Twin River while operating in any state other than Alabama, with the exception of six (6) states. Mississippi was not one of those excepted states. Accordingly, by the explicit terms of the policy, the cancellation provision of the workers' compensation insurance policy between the carrier and Twin River was self-modified to comply with Miss. Code Ann. § 71-3-77 (1989). As a result, the terms of Miss. Code Ann. § 71-3-77 (1989), were incorporated into the insurance policy, superseding any provisions to the contrary. The incorporated terms of Miss. Code Ann. § 71-3-77 (1989), required written notice of cancellation to be given to the Commission, as well as the assured, thirty (30) days prior to cancellation of such policy. Absent such notice, the policy would not be effectively cancelled. In the case sub judice, the carrier failed to comply with the statutory cancellation provision of Miss. Code Ann. § 71-3-77 (1989), because it failed to give written notice to the Commission of its intended cancellation of the policy between it and Twin River. Without such notice, the attempted cancellation of the workers' compensation insurance policy between The Travelers and Twin River was ineffective. Consequently, as of October 6, 1987, the date of Bobby's injury, the workers' compensation policy at issue was in effect. The Commission properly decided this issue.