Zurich General Accident & Liability Insurance v. Stadelman

WASTE, C. J.

The petitioner in this matter is the insurance carrier under a policy of workmen’s compensation insurance issued to Peter C. Stadelman, one of the respondents. The policy contained the following provision:

“(d) It is agreed upon the delivery and acceptance of this Policy, that if the Employer is an individual and has a family (meaning husband, wife, son, daughter, brother, sister or parent residing within this Employer’s household), this Policy shall not apply to any member or members of such family except those named in the Declarations with disclosures of the annual amounts of wages, salaries, emoluments, or profits of each, but not less than $2,700.00 for each. The amounts so stated shall be considered the remuneration of such members of the family subject to audit as respects any increase thereof as in the Policy provided. The proper premium rate for the hazard to which such member of the family is exposed shall apply to this remuneration.”

Pete Stadelman, also one of the respondents, a son of Peter C. Stadelman, was employed by his father, and was injured during the life of the policy, and in the course of his employment. On application for compensation due proceedings were had before the respondent Industrial Accident Commission, during which evidence was introduced! establishing, and the commission found, that Pete Stadelman was a member of the assured’s family and was residing within the employer’s household at the time of the injury. The evidence also showed that Pete Stadelman was not named in any declaration incorporated in the policy of insurance, with a disclosure of his annual wages. Over the objection of the insurance carrier that, by reason of the findings and the terms of the policy, any claim of Pete Stadelman for compensation was excluded, the commission made an award to Pete on the basis of a permanent disability rating. It held the insurance carrier liable, and dismissed the assured from the proceeding. Petitioner renews here the contention urged before the commission that, on the facts found, Pete Stadelman, as a son and member

[153]

of the household of the employer, was excluded from any claim to benefits accruing under the policy.

The position of the respondents, in support of the award, is that the insurance carrier attempted in this ease to issue a policy containing a limitation as to the compensation payable—in other words, a “limited policy”—but that failure by the insurer to observe the requirement contained in section 31a of the Workmen’s Compensation Act (Stats. 1917, p. 831) rendered the policy unlimited, and that any and all employees of Peter C. Stadelman were covered by it. Section 31a, prior to its amendment during the 1929 session of the legislature, provided: