Efrain Nevarez — ADJ10407856

Applicant Efrain Nevarez filed a claim alleging cumulative trauma through August 30, 2015 while employed by American Choice Van Lines and/or Go East Movers. The dispute went to mandatory arbitration on insurance coverage, where the arbitrator found Go East Movers was insured by American Casualty Insurance during the alleged cumulative trauma period and that the insurers' limiting endorsements did not comply with statutory and regulatory requirements. American sought reconsideration, arguing the arbitrator failed to consider evidence of employer fraud and insurer due diligence, should have rescinded the policy for material misrepresentation, and that the policy only covered clerical employees. The Appeals Board affirmed the coverage determination but amended the decision to excise extraneous findings regarding employment, date of injury, fraud, due diligence, and rescission—issues not properly before the arbitrator. The Board held American could not limit coverage to clerical employees without a valid limiting and restricting endorsement, and that fraud/rescission evidence was irrelevant since rescission was never raised as an issue.