Southern Insurance v. WCAB
Annotate this CaseA workers' compensation insurance policy may be rescinded pursuant to Insurance Code section 650. A rescission is enforced by a civil action for relief based on rescission or by asserting rescission as a defense. In this case, the Board appealed an arbitrator's conclusion that, as a matter of law, the insurer could not rescind a workers' compensation insurance policy and that the policy was in effect. Because the arbitrator and the appeals board did not address and determine whether rescission was a meritorious defense to the employee's claim, the Court of Appeal annuled the appeal board's decision and remanded with directions to hear and determine whether the insurer was entitled to rescind, and did rescind, the policy at issue.
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