Mr. Steve Marks This is Me

 Web References

1. 1. CompEd Inc. Kentucky Workers Compensation Resource

   www.comped.net/opinions_recent - [Cached]

   Published on: 12/12/2006   Last Visited: 1/18/2007

   Evidence in the record on the issue consists of the depositions of Jack Massie, an insurance agent who procured the coverage; Steve Marks, an underwriting supervisor with KEMI; Robert Palmer, the underwriter who wrote the policy in question; and, deposition and hearing testimony of Jeanette Taylor, the sole owner of Taylor Contracting.
   ...
   Steve Marks ("Marks"), the underwriting supervisor with KEMI, was deposed. He described the application process. Marks indicated Putnam submitted an on-line application on behalf of Taylor Contracting on September 27, 2004. Marks described the information booklet sent to the insured, in which Part 3 discusses cancellation. He stated cancellation notices are sent by KEMI to both the insured and the agent, and KEMI keeps a log of mailings. Notices of cancellation relative to late payment are generated the day after the premium due date.
   ...
   Marks stated notices were sent to Taylor Contracting and Putnam informing them the policy would be cancelled on August 23, 2005 for non-payment of the premium in the amount of $1,998.21. The cancellation notice was then sent when the payment was not received by August 23, 2005. The payment was received on August 25, 2005, two days after the policy was cancelled for non-payment.
   
   Marks testified the statement dated September 2, 2005, was generated for the outstanding balance remaining on the policy. He indicated the payment of $1,998 was received and applied to the outstanding balance for July 2005. The payment made in October 2005 was applied to the August 2005 invoice.
   
   Marks testified it is KEMI's policy that when an insurance policy is cancelled for non-payment of premium, the contract must be rewritten. The policy is not simply reinstated if a late payment is received after a cancellation following the grace period. Marks testified agents were informed of KEMI's practice by a letter in 2003.
   
   Marks also described the audit process and indicated an audit was attempted on Taylor Contracting. The audit was not conducted because Taylor Contracting refused. Marks testified it was not unusual for KEMI to accept payment on outstanding bills after cancellation.
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   This ALJ agrees with the explanations provided by Mr. Marks and Mr. Palmer.
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   In support of this argument, it points to the testimony of Steve Marks, who specifically testified that the terms of payment are not part of the contract itself.