What the panel ordered
Petition for Reconsideration granted; Findings and Order of February 2, 2026 rescinded; new finding that State Fund effectively cancelled Dynamic Nutraceutical's policy due to failure to timely pay required premium payment due March 8, 2012.p. 8
Petition for Reconsideration filed by State Compensation Insurance Fund seeking review of Findings and Order issued by workers' compensation arbitrator on February 2, 2026.
What was disputed, and how it came out
Each issue the panel decided, with the reasoning it gave. An outcome is what this panel did on this record — not a rule, and not a prediction.
The Appeals Board found that State Fund properly cancelled the policy due to Dynamic's failure to timely pay the required premium payment due March 8, 2012, in compliance with Insurance Code section 676.8 and proper notice requirements.
From the decision · page 8not only due, but overdue after payment in the amount of $71.20 was requested in a previous notice dated January 20, 2012. We also note that the notice of cancellation issued by State Fund was in compliance with Insurance Code section 676.8, which requires a minimum of 10 days’ written notice to the policyholder or insurer in the event of cancellation for failure to make premium payments when they are due. The February 21, 2012 notice of cancellation indicated that the policy would be cancelled for underpayment on March 8, 2012, which is 15 days’ notice. Accordingly, we will grant reconsideration, rescind the F&O, and substitute a new finding that State Fund effectively cancelled Dynamic’s policy due to Dynamic’s failure to timely pay a required premium payment that was due by March 8, 2012. For the foregoing reasons, IT IS ORDERED that State Fund’s Petition for Reconsideration of the Findings and Order issued by the WCA on February 2, 2026 is GRANTED. IT IS FURTHER ORDERED as the Decision After Reconsideration of the Workers’ Compensation Appeals Board that the February 2, 2026 Findings and Order is RESCINDED and the following is SUBSTITUTED therefor:
The facts that decided it
What the panel treated as outcome-determinative, and which side it favoured.
Dynamic failed to timely pay the required premium payment of $71.20 due March 8, 2012.
Favours Defendant prevailed
This failure justified the cancellation of the workers' compensation insurance policy under Insurance Code section 676.8.
From the decision · page 9FINDINGS OF FACT 1. State Fund proved that as of February 21, 2012, a portion of Dynamic’s deposit premium remained unpaid. 2. On March 8, 2012, defendant State Compensation Insurance Fund properly cancelled its workers’ compensation policy insuring Dynamic Nutraceutical, Inc. in accordance with the terms of the contract and Insurance Code § 676.8, due to Dynamic’s failure to timely make a required premium payment when due.
State Fund provided proper written notice of cancellation on February 21, 2012, giving more than the required 10 days' notice before cancellation effective March 8, 2012.
Favours Defendant prevailed
This notice complied with Insurance Code section 676.8 and supported the validity of the policy cancellation.
From the decision · page 8not only due, but overdue after payment in the amount of $71.20 was requested in a previous notice dated January 20, 2012. We also note that the notice of cancellation issued by State Fund was in compliance with Insurance Code section 676.8, which requires a minimum of 10 days’ written notice to the policyholder or insurer in the event of cancellation for failure to make premium payments when they are due. The February 21, 2012 notice of cancellation indicated that the policy would be cancelled for underpayment on March 8, 2012, which is 15 days’ notice. Accordingly, we will grant reconsideration, rescind the F&O, and substitute a new finding that State Fund effectively cancelled Dynamic’s policy due to Dynamic’s failure to timely pay a required premium payment that was due by March 8, 2012. For the foregoing reasons, IT IS ORDERED that State Fund’s Petition for Reconsideration of the Findings and Order issued by the WCA on February 2, 2026 is GRANTED. IT IS FURTHER ORDERED as the Decision After Reconsideration of the Workers’ Compensation Appeals Board that the February 2, 2026 Findings and Order is RESCINDED and the following is SUBSTITUTED therefor:
The rules the panel named
Authorities as the decision cited them, with how this panel applied each one.
Insurance Code section 676.8
Insurance Code section 676.8
Governs the notice and conditions for cancellation of workers' compensation insurance policies.
From the decision · page 6A policy shall not be canceled for the conditions specified in paragraph (3) or (4) of subdivision (b) except upon 30 days’ written notice to the policyholder by the insurer, provided that notice is not required if an insured and insurer consent to the cancellation and reissuance of a policy effective upon a material change in ownership or operations of the insured. The time periods and procedures in subdivision (a) of Section 1013 of the Code of Civil Procedure shall be applicable if the notice is mailed.
Labor Code section 5909
Labor Code section 5909
Governs the timing and notice requirements for petitions for reconsideration.
From the decision · page 4Up through July 1, 2024, petitions for reconsideration were subject to former Labor Code 1 0F
What proof carried it
The evidence the panel weighed, by kind.
Notice of cancellation was issued on February 21, 2012, providing 15 days' notice before cancellation effective March 8, 2012, complying with Insurance Code section 676.8.
From the decision · page 8not only due, but overdue after payment in the amount of $71.20 was requested in a previous notice dated January 20, 2012. We also note that the notice of cancellation issued by State Fund was in compliance with Insurance Code section 676.8, which requires a minimum of 10 days’ written notice to the policyholder or insurer in the event of cancellation for failure to make premium payments when they are due. The February 21, 2012 notice of cancellation indicated that the policy would be cancelled for underpayment on March 8, 2012, which is 15 days’ notice. Accordingly, we will grant reconsideration, rescind the F&O, and substitute a new finding that State Fund effectively cancelled Dynamic’s policy due to Dynamic’s failure to timely pay a required premium payment that was due by March 8, 2012. For the foregoing reasons, IT IS ORDERED that State Fund’s Petition for Reconsideration of the Findings and Order issued by the WCA on February 2, 2026 is GRANTED. IT IS FURTHER ORDERED as the Decision After Reconsideration of the Workers’ Compensation Appeals Board that the February 2, 2026 Findings and Order is RESCINDED and the following is SUBSTITUTED therefor:
Dynamic failed to timely pay the required premium payment of $71.20 due March 8, 2012.
From the decision · page 9FINDINGS OF FACT 1. State Fund proved that as of February 21, 2012, a portion of Dynamic’s deposit premium remained unpaid. 2. On March 8, 2012, defendant State Compensation Insurance Fund properly cancelled its workers’ compensation policy insuring Dynamic Nutraceutical, Inc. in accordance with the terms of the contract and Insurance Code § 676.8, due to Dynamic’s failure to timely make a required premium payment when due.
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About this page
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