State Compensation Insurance Fund v. Industrial Accident Commission

STURTEVANT, J. This is an application by the State Compensation Insurance Fund for a writ of review for the purpose of obtaining a judgment annulling an award made against it.

The employer, Emil Tabournel, for some years prior to 1936, owned and operated the Hotel Henry in San Francisco. In May, 1936, he determined to place an application for compensation insurance with the State Compensation Insurance Fund, and he was advised to go to the office of the latter and [278]inquire for Mr. Rizzo. Accordingly he went to said office at 450 McAllister Street, San Francisco, and made his application to Mr. Rizzo. The latter questioned him as to his business and the details concerning the insurance and had him fill out and sign an application for an insurance policy. Mr. Tabournel told Mr. Rizzo that he had six employees and that he wanted all of them covered. Later he left the office of the petitioner and a short time afterwards received a policy insuring him from June 3, 1936, until June 3, 1937. At once he proceeded to read the policy. One endorsement thereon was as follows:

“IMPORTANT CHANGE • “ (Relatives Not Covered)

“In accordance with the rule of the Insurance Commissioner NO RELATIVE is covered under this Policy UNLESS HIS OR HER NAME IS SPECIFICALLY MENTIONED IN THE POLICY SCHEDULE.

“Please examine the Policy and write us immediately if any relative not specifically mentioned by name in the schedule is to be covered. Be sure to give full names, a description of their duties and specify whether or not they will reside on property in your possession. ’ ’

Another endorsement in so far as applicable was as follows :

“ENDORSEMENT AGREEMENT “LIMITING AND RESTRICTING THIS INSURANCE.

“Relatives Not Covered.

“The insurance under this policy is limited as follows:

“It is agreed that, anything in this policy to the contrary notwithstanding, this policy DOES NOT EXTEND TO OR COVER INJURIES (or death resulting therefrom) sustained by any relative either by blood or marriage, (meaning-husband, wife, . . . , nephew or niece) of the insured and/or his or her spouse, unless such relative is SPECIFICALLY MENTIONED BY NAME IN THE SCHEDULE AS COVERED BY THIS POLICY, or IN AN ENDORSEMENT ATTACHED TO THIS POLICY.