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Savant Insurance Services6/12/2002
This appeal arises from a judgment of the trial court in favor of Plaintiffs, Savant Insurance Services and Savant Insurance Company (collectively referred to herein as "Savant"), and against Defendant, Central Oil and Supply Corporation ("COS"), in the amount of $43,460.24, together with legal interest, representing unpaid premiums on workers' compensation insurance policies. COS appeals, asserting four assignments of error, and Savant has answered the appeal challenging the amount awarded and the failure to award attorney fees. For the reasons stated herein, we affirm.
FACTS AND PROCEDURAL BACKGROUND
COS owns and operates gas service stations and convenience stores. This dispute primarily concerns the classification of COS employees for purposes of computing the premiums due under certain workers' compensation insurance policies procured for COS through agent Thomas, Farr & Reeves Agency, Inc. ("Thomas & Farr"). Savant filed suit on April 22, 1997, for the following alleged unpaid premium amounts: (1) $46,744 for policy period July 15, 1991, to July 15, 1992, and (2) $48,967 for policy period July 16, 1992, to December 31, 1992. The alleged unpaid premiums resulted from a re-classification of COS employees by Savant as Code 8061, "convenience store," which carries a higher premium rate, rather than Code 8381, "gas station/self serve."
COS's application for the policies at issue contained an estimated payroll figure and COS's classification of its employees as "gas station/self serve" for premium computation. COS paid an estimated premium based on the above representations; however, the actual premiums were subject to adjustment under the following provisions of the policy:
D. Final Premium
The premium shown on the Information Page, schedules, and endorsements is an estimate. The final premium will be determined after this policy ends by using the actual, not the estimated, premium basis and the proper classifications and rates that lawfully apply to the business and work covered by this policy. If the final premium is more than the premium you paid to us, you must pay the balance. If it is less, we will refund the balance to you. The final premium will not be less than the highest minimum premium for the classifications covered by this policy. . . .
*
G. Audit
You will let us examine and audit all your records that relate to this policy. These records include ledgers, journals, registers, vouchers, contracts, tax reports, payroll and disbursement records, and programs for storing and retrieving data. We may conduct the audits during regular business hours during the policy period and within three years after the policy period ends. Information developed by audit will be used to determine final premium. Insurance rate service organizations have the same rights we have under this provision.
Savant assigned a comptroller, Ms. Donna Rone, to conduct an audit of COS, pursuant to provision "G" above, in order to determine whether the estimated premium paid by COS should be adjusted in accordance with provision "D" above. The parties dispute what documents and information Ms. Rone actually reviewed and considered in drawing her conclusions that COS had substantially underestimated its payroll for each of the policy periods and had incorrectly classified many of its employees. In any event, as a result of her audit and re-classification of COS employees, Ms. Rone sent an invoice to COS for unpaid excess premiums. COS objected to the amounts of the requested premiums and appealed the audit findings to the Louisiana Insurance Rating Commission ("the Commission"). While the matter was pending b
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