 |
 |
to fill out a simple form to connect to Employee Leasing Services in your area.
|
|
|
|
|
Travelers Indemnity Co. of Illinois v. Challenger Fence Co.8/5/2005
Affirmed.
Before ELLIOTT, P.J., MARQUARDT and McANANY, JJ.
The Travelers Indemnity Company of Illinois (Travelers) appeals from the district court's judgment in its favor against Challenger Fence Company, Inc., (Challenger). Travelers claims the judgment was inadequate to compensate it for the premium it was due on an insurance policy it issued to Challenger. Finding no error by the district court, we affirm.
Travelers issued its workers compensation and employers liability policy to Challenger for the period June 15, 2000, to June 15, 2001. The premium was based upon the following formula contained in the policy:
"C. Remuneration
"Premium for each work classification is determined by multiplying a rate times a premium basis. Remuneration is the most common premium basis. This premium basis includes payroll and all other remuneration paid or payable during the policy period for the services of:
"1. All your officers and employees engaged in work covered by this policy; and
"2. All other persons engaged in work that could make us liable under Part One (Workers Compensation Insurance) of this policy. If you do not have payroll records for these persons, the contract price for their services and materials may be used as the premium basis. This paragraph 2 will not apply if you give us proof that the employers of these persons lawfully secured their workers compensation obligations."
The employees of Challenger described in paragraph C. 1. were generally carpenters, salespersons, and clerical workers. This suit involves persons--here, subcontractors of Challenger--whom Travelers claims should have been counted in the premium calculation under paragraphs C. 1. or C. 2.
Challenger paid $3,511 as the estimated policy premium when it first purchased the policy. The exact premium for the policy was to be calculated retroactively based upon an audit conducted by Travelers at the end of the policy period. Following the audit, Travelers issued to Challenger a premium adjustment notice which Challenger disputed. Challenger contended that the calculation included Terry Schmidt, Todd Navinsky, and Robert Libel, who were independent subcontractors and not Challenger employees. When it was apparent that Travelers and Challenger could not agree on the premium, Travelers sued Challenger. At trial, the court ruled that Schmidt and Navinsky were subcontractors who should be excluded from the premium calculation. The court entered judgment in favor of Travelers in the amount of $3,437. Travelers appeals.
The Premium Calculation
Travelers claims the court erred in excluding Schmidt and Navinsky from the premium calculation. Challenger claims they were independent subcontractors not covered by the policy. Interpretation of the Travelers policy is an issue of law which we review de novo. Unrau v. Kidron Bethel Retirement Services, Inc., 271 Kan. 743, 763, 27 P.3d 1 (2001). If the terms of the policy are plain and unambiguous, we will look to the policy itself to determine its meaning and the intention of the parties. Zukel v. Great West Managers, LLC, 31 Kan. App. 2d 1098, 1101, 78 P.3d 480, rev. denied 277 Kan. 928 (2003). Since the policy relates to workers compensation coverage, we must also look to pertinent provisions of the Kansas Workers Compensation Act, K.S.A. 44-501 et seq., and cases applying them. Finally, we evaluate the trial court's findings of fact to determine if there is substantial evidence to support them.
An employee for purposes of workers compensation is "any person who has entered into the employment of or works under any contract of service or appren
Page 1 2 3 Kansas Employee Leasing Services
Employee Leasing Services
|
| |
to fill out a simple form to connect to Employee Leasing Services in your area.
|
|