Natl. Auto. & Cas. Ins Co. v. Calif Cas. Ins. Co.

California Court of Appeal Jan 21, 1983 No. 66286Published

Before: Woods

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Holding. An insurer's failure to provide the statutorily required notice of nonrenewal or cancellation at least 20 days prior to the policy expiration date results in the automatic renewal of the policy by operation of law, regardless of the named insured's death or nonpayment of premiums.

Issues

Whether an automobile insurance policy remains in effect after the death of the named insured if the insurer fails to comply with statutory notice requirements for nonrenewal or cancellation.
Whether an insurer's failure to provide 20 days' advance notice of nonrenewal under Insurance Code section 663 results in the automatic renewal of the policy.

Disposition. affirmed

Quotations verified verbatim against the opinion

“The plain language of section 663 ... imports that an insurer's failure to give such notice operates to effect an automatic renewal of the policy, beyond its renewal-expiration date and irrespective of the insured's nonpayment of the renewal premium”

“the requirement of section 663, that an insurer provide an insured with at least 20 days' advance notice of nonrenewal, was binding on appellant, and its failure to do so resulted in automatic renewal of the subject policy.”

139 Cal.App.3d 336 (1983) 188 Cal. Rptr. 670 NATIONAL AUTOMOBILE AND CASUALTY INSURANCE COMPANY, Plaintiff and Appellant,

CALIFORNIA CASUALTY INSURANCE COMPANY, Defendant and Respondent.

Docket No. 66286. Court of Appeals of California, Second District, Division Four.

January 21, 1983. [338] COUNSEL

Morris, Moore & Morris and Robert V. Morris for Plaintiff and Appellant.

Stearns & Nelson, Bruce L. Nelson and Al Schallau for Defendant and Respondent.

OPINION

WOODS, P.J.

This appeal addresses the issue of the effect of an offer to renew a policy of automobile insurance, made after the death of the named insured. We have concluded that the trial court properly determined that insurance coverage existed on the date of the subject accident, and therefore affirm the judgment below.

Appellant, National Automobile and Casualty Insurance Company, issued a policy of automobile liability insurance to Melvin Gray. That policy was effective from January 26, 1979 to July 26, 1979. Melvin Gray was the named insured under the policy; however, additional insureds were identified at paragraph 16 of the policy and included "any person having proper temporary custody of an owned automobile, as an insured, ..." following the death of the named insured.

On May 31, 1979, during the policy period, Melvin Gray died. The fact of his death was unknown to appellant. Following his death, the insured automobile was properly in the possession of Roger Gray, whom appellant admits was an insured under the subject policy.

[339] On July 31, 1979, appellant sent a notice to Melvin Gray, which stated: "Notice of lapsed policy. Policy lapsed on effective date (07-26-79) due to nonpayment of premium. If you desire to continue your policy with no lapse in coverage, payment must be received by 08-12-79. You have been insured with us since January 1978, we hope you will continue with us. Thank you."

Natl. Auto. & Cas. Ins Co. v. Calif Cas. Ins. Co.

AI Brief

OPINION

WOODS, P.J.

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