UNDERWRITERS AT LLOYD'S, LONDON, APPELLANT,
v.
A.I. CREDIT CORP., APPELLEE
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Underwriters at Lloyd's challenged a summary judgment awarding A.I. Credit Corporation a premium refund based on alleged policy cancellation. The court held that the insurance policy's explicit language requiring written notice directly to Underwriters could not be satisfied by notice to the agent or broker, thus reversing the judgment in favor of A.I. Credit.
Notice to an agent or broker is insufficient to effect cancellation of the policy. The insurance policy's clear and unambiguous language expressly requires written notice to be sent directly to Underwriters, and the policy provision on changes explicitly states that notice to any agent or knowledge possessed by any agent shall not effect a change to the policy.
[1] A notice of cancellation sent to an agent is insufficient to effect cancellation of an insurance policy when the policy expressly provides that notice must be sent direct…
[2] A provision in an insurance policy stating that notice to any agent shall not effect a waiver or change in any part of the policy is clear and unambiguous.
Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“The clear and unambiguous language of the insurance policy requires that notice of cancellation be sent directly to Underwriters.”
Establishes the court's interpretation of the policy's cancellation provision and the requirement for direct notice
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceA.I. Credit Corporation obtained an insurance policy from Underwriters at Lloyd's, London. A.I. Credit sought a refund of premiums, claiming the polic…
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PER CURIAM.
We reverse the order entered on the parties’ motions for summary judgment insofar as it grants A.I. Credit Corporation’s [A.I. Credit] motion and denies Underwriters at Lloyd’s, London’s [Underwriters] motion. The clear and unambiguous language of the insurance policy requires that notice of cancellation be sent directly to Underwriters.1 The policy expressly pro vides that notice to an agent is not sufficient to effect a change.2 A.I. Credit failed to send Underwriters written notice of cancellation. Thus, A.I. Credit is not entitled to a refund of premiums. Even if the agency and broker who placed the insurance were agents of Underwriters, a matter which we need not determine, notice to the agency and broker was insufficient to cancel the policy. We therefore reverse the summary final judgment entered in favor of A.I. Credit and remand with directions to enter summary final judgment for Underwriters. We leave intact the trial court’s reservation of pending motions against other parties.
Reversed and remanded with instructions.
. The insurance policy provides:
CANCELLATION.
This Policy may be cancelled by the Insured by surrender thereof or by mailing to the Underwriters written notice stating when thereafter such cancellation shall be effective. This Policy may be cancelled by the Underwriters by mailing to the Insured at the address shown in this Policy written notice stating when not less than ten days thereafter such cancellation shall be effective, (emphasis supplied)
. The insurance policy provides:
CHANGES.
Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this Policy or estop the Underwriters from asserting any right under this Policy: nor shall any part of this Policy be waived or changed, except by endorsement signed by the Underwriters and issued to form part of this Policy, (emphasis supplied)