UNITED STATES CASUALTY CO.
v.
EWING ET AL.
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The court held that the insurer was estopped from reauditing and reclassifying premiums after issuing a final statement that the insured relied upon, and that reclassifications outside the scope of the policy were invalid.
Appellees insured construction work in Puerto Rico with advance premiums based on estimated remuneration. After work completion and a final statement …
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The judge also held that when the insurer by its accredited agents made a final statement for the purpose of its being acted on, and it was acted on, so that an additional premium cannot now be charged to the Government as a cost of the work, the insurer is estopped to question its own statement.
We agree with these conclusions. The insurer’s auditor admitted that in order to reclassify he had to know what each workman was doing each day and that he did not know, but was acting on supposition. Moreover his main reclassification under the Manual Code Number 5057 took him outside the policy, for no such work is listed in the policy as to be insured, and no rate for such was named. The policy says, “Other operations, if any, not covered hereunder”. If such work was not covered, no premium is due on it.
As to the statement of February 23, the insurer argues that it was really not to be taken as final, because in it are found the words “subject to any further audit”. The statement is two pages of single spaced typewriting giving all charges in one column and then a short column of credits, and among the latter is a line, “Less the following deposit premiums, (subject to any further audit), 8/15/42, U.S.Cas.W.C. 4924, Return deposit premium $1000. 8/15/42 U.S.Cas.P.L. 22493, Return deposit premium $250.” Following these items the debits are totalled and the credits totalled, and the difference taken. The audit is mentioned in connection with and in the midst of the credits, and not of the debits. Ewing and Mears testified, one that he paid no attention to the words, and the other that he did not see them. They had asked for a final statement, were promised that, and Fletcher accepted payment on it. It ought to be. treated as such. It was at least an account settled, and a material mistake ought to be clearly proven to upset it The judge found that no error in the premium account was. proved. He also denied the counter claim of Ewing and Mears. His judgment is
Affirmed.
Order on Motion for Rehearing.
PER CURIAM.
We consider the typewritten rider to be controlling over the quotation made fron\ the printed form of the policy.
Motion for rehearing denied.