Court Opinion

ID: 9741283
Source: CourtListenerOpinion
Date Created: 2023-08-26 20:52:45.896061+00
Date Added: 2024-06-11T07:24:23.249523
License: Public Domain

PRESIDING JUSTICE McCULLOUGH, specially concurring: I agree with the conclusion of the majority that the Commission did have jurisdiction to rule on the coverage dispute between Farmers and the employer. I also agree that the compensation policy was in effect at the time of the claimant’s accident but do not agree with the majority’s reasons for finding that there was no proper cancellation in compliance with the Illinois Insurance Code, the Act, and the terms of the Farmers policy. I agree with the argument of Farmers that there was no testimony from any witness regarding the accuracy or inaccuracy of the zip code number of the address used to notify the respondent of the cancellation. The parties argue in their briefs the effect of the cancellation notice, which was respondent’s exhibit No. 6, and the effect of Textile’s exhibit No. 5. The record is clear that Farmers admits that Bonnie Ropp, an employee of Farmers, testified Textile’s exhibit No. 5 went out with Farmers exhibit No. 6, the cancellation notice. Farmers’ exhibit No. 5 as shown in the record is a second request for the payment of workers’ compensation insurance. The form requested that payroll information and a determination of the premium be made by Textile and that it be submitted to Farmers on or before July 6, 1988, which is one day after the accident incurred by the claimant on July 5, 1988. It is inconsistent, to say the least, for Farmers to send a notice of cancellation along with a second request for payroll information and for a premium payment to be due on or before July 6, 1988, one day after the date of injury, July 5, 1988. As the majority indicates, the insurance company is held to a strict standard when it attempts to cancel a policy for the nonpayment of a premium. The cancellation notice and the second request for payment referred to above point out ambiguities which must be held against Farmers. The cancellation notice had no effect, because, if Textile had forwarded its premium pursuant to the second request on July 6, 1988, the insurance would still be in effect. Apparently by the two notices sent by Farmers, it desired to both cancel the insurance and to continue its effectiveness if the premium was paid by the date shown. The result reached by the majority is correct.