Court: District Court of Appeal of Florida; March 16, 1988; Florida; State Appellate Court
The trial court determined that George Maxwell was covered by an automobile insurance policy from Nationwide Mutual Fire Insurance Company (Nationwide) despite issues surrounding premium payments and cancellation notices. On October 3, 1981, a vehicle operated by Joyce Adams, owned by Maxwell, collided with another vehicle, leading to a lawsuit against them. Maxwell sought a declaration of coverage from Nationwide, arguing that he had requested changes to his policy to remove a 1978 Dodge and add a 1978 Mercedes, accompanied by a partial premium payment. He claimed he did not receive any cancellation notices from Nationwide, only a check dated August 25, 1981, which he interpreted as an adjustment for his policy changes.
Trial testimony revealed that Maxwell had not paid the full premium amount required following the policy change, and Nationwide sent a termination notice on August 4, 1981, after failing to receive subsequent payments. However, a discrepancy in the termination notice dates—Maxwell produced a copy dated July 15, 1981—led the trial judge to rule in his favor, asserting that Nationwide's notice of cancellation was unclear and confusing. The trial court concluded Nationwide had a duty to provide clear cancellation notice and found coverage under the policy. Nationwide appealed, and the judgment was reversed, emphasizing that the court did not dispute whether Maxwell received a cancellation notice, but rather questioned its clarity.
The notice sent to Maxwell was determined to be confusing, but it was nonetheless received by him; confusion could not arise from a notice he hadn't received. The court found the notice legally sufficient, noting that the termination notice—dated either July 15 or August 4, 1981—was sent more than ten days before the accident. Additionally, the information included with the cancellation refund check, which Maxwell received and cashed on August 25, 1981, adequately informed him of the policy termination. As a result, the trial court's judgment in favor of Maxwell was reversed, with the case remanded for a judgment in favor of Nationwide. The relevant statutory provision, Section 627.728(3)(a) of the Florida Statutes (1981), requires that cancellation notices be delivered or mailed to the insured at least 45 days prior to cancellation, or at least 10 days' notice with reasons given if due to nonpayment of premium.
