Wisconsin Federal Court Upholds 30-Day Challenge Provision In Retrospective Workers’ Compensation Policy
The U.S. District Court for the Western District of Wisconsin granted summary judgment to a workers’ compensation insurer on an insured’s counterclaim that compliance with a 30-day requirement for making challenges to payments under the workers’ compensation policy was not feasible. Under the parties’ retrospective workers’ compensation policy and a casualty insurance agreement, all amounts due to be paid from the insured to the insurer for past due premiums and expenses incurred in administering covered claims were required to be paid within 30 days unless the insured presented a written explanation for the basis of the insured’s disagreement with the amount allegedly owed. The court found that while the amounts for the actual costs of the workers’ compensation claims may be adjusted after the 30-day challenge period, the insured failed to explain how these future adjustments undermine its ability to dispute timely amounts due under the policies.
