(California Court of Appeal) - In an action involving a workers' compensation insurance policy that was issued based on the express representation that the covered employer's employees did not travel out of state,and after an employee was injured out of state, the insurer notified the employer that it was rescinding the policy because of the employer's misrepresentation and returned the premium, and the Workers' Compensation Appeals Board's decision affirming an arbitrator's decision that,as a matter of law, the insurer could not rescind the policy and that the policy was in effect, or is annulled where: 1) opposite to the arbitrator's ruling,a workers' compensation insurance policy may be rescinded; and 2) the arbitrator and the appeals board did not address and determine whether rescission was a meritorious defense to the employee's claim.
Source: findlaw.com