Brewer v. Royal Insurance Co. of America

Adams, Judge.

Robert Brewer obtained workers’ compensation insurance for his business from Royal Insurance Company of America for two years. On his application, he indicated he did not use subcontractors. He paid an estimated premium of $750 the first year and $850 the second, but the policy provided the premium was subject to change following an audit. An audit revealed that Brewer did in fact use subcontractors and that his actual earned premium was $65,698 through the date of the audit. The policy was cancelled for premium nonpayment in September 2003, and an additional audit revealed that…