Cancellation of Policy - Workers Comp Coverage
In Sroczynski v. John Milek, decided December 17,
2008 the NJ Supreme Court found that there can be no
legally effective policy cancellation where a carrier
fails to prove that it strictly complied with all of
the requirements for canceling a workers’
compensation insurance policy. The NJ Legislature
established clear and unambiguous requirements in the
cancellation statute, which include the requirement
that a carrier file with the Compensation Rating and
Inspection Bureau the certified statement required in
N.J.S.A. 34:15-81(b). However, the Court also held
that only parties that have raised this particular
filing issue can be granted relief from improper
cancellations - past cancellations that were never
challenged on this ground will stand because the
policyholders waived their right to challenge them.
