Observations of the legal scene from the Cornhusker State, home of Roscoe Pound and Justice Clarence Thomas' in-laws, and beyond.
Saturday, July 14, 2007
Manufacturer of medicated livestock feed was a grist mill and not a medical packaging company for worker compensation insurance costs. Nebraska supreme court affirms judgment against manufacturer of medicated animal fee and in favor of Travelers Insurance, the assigned risk carrier for Nebraska worker compensation insurance.
Travelers Indemnity Co. v. International Nutrition, S-06-063, 273 Neb. 943 The defendant applied for worker compensation insurance through the Nebraska assigned risk pool, which Travelers administers. When Travelers audited the insured business, it applied a retroactive rate increase, reclassified theindustry from medical packaging to grist milling, charged the assigned risk rate and sought prejudgment interest. The District court ruled in favor. The district court approved of Travelers' using the NAIC worker compensation manuals to determine worker classifications and billing policies. Nebraska Supreme Court affirms. given the plain and unambiguous language of the insurance policy and the application of the
nCCI basic Manual, travelers had the authority to correct
International nutrition’s classification code and retroactively
apply the corresponding change in premium. travelers did not
breach the insurance contract, nor did it waive its right to
change the classification code as a result of its decision not to
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