Preferred Accident Ins. Co. of N. Y. v. Van Dusen

1949 OK 226, 210 P.2d 341, 202 Okla. 124, 1949 Okla. LEXIS 408
CourtSupreme Court of Oklahoma
DecidedOctober 18, 1949
DocketNo. 32917
StatusPublished
Cited by13 cases

This text of 1949 OK 226 (Preferred Accident Ins. Co. of N. Y. v. Van Dusen) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Preferred Accident Ins. Co. of N. Y. v. Van Dusen, 1949 OK 226, 210 P.2d 341, 202 Okla. 124, 1949 Okla. LEXIS 408 (Okla. 1949).

Opinion

LUTTRELL, J.

This is an original proceeding in this court brought by petitioner, the Preferred Accident Insurance Company of New York, to review an award of the State Industrial Commission in favor of W. A. Van Dusen. Van Dusen’s employer, Harold P. Atlee, the State Industrial Commission, and others are also joined as respondents.

In its award, among other things, the commission found that the compensation insurance policy of petitioner, issued to the employer Harold P. Atlee, was in full force on February 12, 1946, the date of claimant’s injury, and that claimant, at the time of his injury, was engaged in a hazardous occupation subject to and. covered by the Workmen’s Compensation Law. Petitioner contends that the two findings of the commission above set forth were erroneous. Since no other questions are involved, we deem it unnecessary to fully state the facts surrounding the accidental injury sustained by claimant, about which there is no dispute, and will confine ourselves to those bearing directly upon questions raised by petitioner in its petition for review and briefs.

Petitioner first contends that the policy issued by it to the employer At-lee was effectively canceled prior to the date of claimant’s injury. Upon this question the finding of the commission is as follows:

“That Commissioner finds ■ that the compensation insurance policy of the Preferred Accident Insurance Company of New York, whereby the business of the respondent Harold P. At-lee, was insured, was in full force and effect on February 12, 1946, the date of claimant’s accidental injury herein, and that said insurance company is a proper party herein. The Commissioner specifically finds that said respondent, Harold P. Atlee, had specifically instructed said insurance company to cancel said insurance policy prior to the date of said accident, but that said respondent had failed to cancel same on the date said respondent requested it to do so, to-wit: On or about December 31, 1945, but attempted to cancel same on or about January 31, 1946. The Commissioner finds respondent was not given the written notice required by law of intention to cancel said policy, and the attempted cancellation of same was ineffectual by reason of said failure to give written notice of intention to cancel, as required by law.”

The testimony amply sustains the facts stated by the commission in the above finding, but petitioner urges that as a matter of law notice of cancellation to the employer was unnecessary where the employer had requested or consented to the concellation of the policy.

The governing statute, 85 O. S. 1941 §64, subdivision (e), provides that no Workmen’s Compensation policy issued to an employer shall be canceled at any time other than the expiration date provided therein “until at least ten days after notice of intention to cancel [126]*126such contract, on a date specified in such notice, shall be filed in the office of the Commission and also served on the employer.” It provides that notice shall be served on the employer by delivering the same to him personally, or by sending it to him by registered mail addressed to him at his last known place of business. In the instant case, the evidence reflects that prior to the expiration date of the policy the employer requested cancellation as of December 31, 1945, and an agent of the insurance company went to his home and procured from his wife the policy of insurance; that thereafter, on January 19, 1946, a notice was sent to the State Industrial Commission, which was received by it on January 21, 1946, advising that the policy was returned to petitioner for cancellation as of December 31, 1945, and that it was canceling its records January 29, 1946. It seems to be admitted that no notice of any kind advising the employer of the cancellation, or the effective date thereof, was served upon the employer, either personally or by mail.

Petitioner urges that under the circumstances notice to the employer was unnecessary, as the employer had requested cancellation and knew that the policies had been returned for cancellation. Petitioner relies principally upon Rasberry v. R. O. Knost & Sons, 146 Okla. 186, 293 P. 778. In that case notice of cancellation was apparently filed with the commission, and a registered letter containing notice to the employer was mailed to him, the envelope bearing directions that the letter should be returned to the insurance company if not delivered within five days. It was not delivered within the five-day period and was returned to the insurance company. In that case we said:

“A registered letter containing notice, but bearing directions thereon that such letter shall be returned if not delivered within five days, and where such direction is carried out, and no actual notice is received, does not fill the requirements of the statute as to ten days’ notice as a condition precedent to cancellation of policy insurance.”

Petitioner asserts that the language in the above quotation “and no actual notice is received,” implies that after the employer has actual notice that the policy is to be canceled the written notice provided in the statute is unnecessary. We do not agree with this construction. We think that the words “and no actual notice is received”, when read in connection with the rest of the opinion, refers to the failure of the employer to receive the notice sent to him by registered mail as provided by the statute, the receipt of which would have amounted to actual notice.

Respondent also calls attention to the fact that actual notice of an injury under the Compensation Act has been frequently excused, and that in cases where insurance policies other than Workmen’s Compensation insurance were involved, this court has held that notice of cancellation may be waived, citing Liverpool, London & Globe Ins. Co. v. Tharel, 68 Okla. 307, 174 P. 773. Petitioner apparently overlooks the fact that our statute, 85 O.S. 1941 §24, specifically authorizes the Industrial Commission to excuse the giving of written notice of injury in certain cases. The rule announced in cases involving insurance policies of other types is, in our judgment, of little force when the express provisions of section 64 are considered.

In Tri-State Casualty Co. v. Speer, 189 Okla. 191, 115 P. 2d 130, we held that the filing of notice of cancellation with the State Industrial Commission was mandatory. In that case we said that the cancellation provision of section 64 was enacted for the purpose, among other things, of “relieving the Commission of the necessity of passing upon contractual rights or engagements between the employer and insurance carrier. It gave a statutory life to the policy, so that no private act or agreement of the insurer and insured could deprive an injured employee of its protection”.

[127]*127Since, under the statute, cancellation is not effective in the absence of notice to the employer, we think that for the reason above given notice to the employer is also mandatory, in that by such notice he is definitely advised of the date on which his policy will cease to be in force, in sufficient time to enable him to protect himself and his workmen by procuring other insurance. Farmer’s Gin Co. of Manitou v. Jones, 146 Okla. 79, 293 P. 527. We hold that the method of cancellation provided by the statute is mandatory, and must be strictly complied with in all respects in order to relieve an insurance company from liability under a Workmen’s Compensation policy issued by it.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Rockwood Casualty Insurance v. Uninsured Employers' Fund
867 A.2d 1026 (Court of Appeals of Maryland, 2005)
Whitworth v. Melvin West/West Dairy
1990 OK CIV APP 35 (Court of Civil Appeals of Oklahoma, 1990)
American Mutual Fire Insurance v. Barlow
358 S.E.2d 184 (Court of Appeals of Virginia, 1987)
Murphy v. Chickasha Mobile Homes, Inc.
1980 OK 75 (Supreme Court of Oklahoma, 1980)
Empire Fire & Marine Insurance Co. v. Spurlock
1979 OK 54 (Supreme Court of Oklahoma, 1979)
Hines v. Cherokee Lines, Inc.
1973 OK 46 (Supreme Court of Oklahoma, 1973)
In Re Hines
1973 OK 46 (Supreme Court of Oklahoma, 1973)
PRESSMAN, ADMINISTRATOR OF ESTATE OF HARRIS v. Accident Fund
228 A.2d 443 (Court of Appeals of Maryland, 1967)
Traders & General Insurance Company v. Harris
1965 OK 23 (Supreme Court of Oklahoma, 1965)
Oklahoma Steel Corporation v. Chafin
1960 OK 12 (Supreme Court of Oklahoma, 1960)
Townley Dairy Farms v. Greenwood
1957 OK 257 (Supreme Court of Oklahoma, 1957)
In Re Greenwood
1957 OK 257 (Supreme Court of Oklahoma, 1957)
Passmore v. Austin
253 P.2d 800 (Idaho Supreme Court, 1953)

Cite This Page — Counsel Stack

Bluebook (online)
1949 OK 226, 210 P.2d 341, 202 Okla. 124, 1949 Okla. LEXIS 408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/preferred-accident-ins-co-of-n-y-v-van-dusen-okla-1949.