The State Insurance Fund (hereinafter State Fund) issued a workers' compensation policy to the employer that was effective from August 4, 1987 to August 4, 1988. The estimated annual premium for the policy was $1,781.66 based upon an annual payroll of $18,000. On June 20, 1988, as required, the State Fund audited the employer's payroll to ascertain what its actual payroll was for the period between August 4, 1987 and February 4, 1988. This audit...
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