Seds, Inc. v. Hartford Fire Ins. Co., 97-3901

• Decision Date: 27 January 1999
• Docket Number: No. 97-3901,97-3901
• Citation: Seds, Inc. v. Hartford Fire Ins. Co., 724 So.2d 1258 (Fla. App. 1999)
• Parties: SEDS, INC., a corporation, f/k/a Worldmark Corporation, Appellant, v. HARTFORD FIRE INSURANCE CO., a corporation, Appellee.
• Court: Florida District Court of Appeals

Page 1258

724 So.2d 1258

SEDS, INC., a corporation, f/k/a Worldmark Corporation, Appellant, v. HARTFORD FIRE INSURANCE CO., a corporation, Appellee.

No. 97-3901

District Court of Appeal of Florida Fourth District.

Jan. 27, 1999.

Eric C. Christu of Elk, Bankier, Palmer & Christu, Boca Raton, for appellant.

Frank J. Sinagra of Haley, Sinagra & Perez, P.A., Fort Lauderdale, for appellee.

ON MOTION FOR REHEARING

KLEIN, J.

We grant appellant's motion for rehearing, withdraw our opinion filed on December 2, 1998 and substitute the following opinion.

Appellant was provided worker's compensation insurance coverage by appellee Hartford with the premium to be calculated based on a formula known as an "incurred loss retrospective ratings plan." Incurred losses are those losses actually paid by the insurer. To calculate the retrospective premium there would be periodic audits of the claims, and the insured would either be charged an additional premium or receive a credit. In this appeal, the insured argues that because Hartford had destroyed many of the individual claim files, the trial court erred in allowing Hartford to recover retrospective premiums from the insured.

Although it is true that Hartford did destroy many of the files, there was evidence reflecting that the vast...