390 S.W.3d 208
Mo. Ct. App.2012Background
- Clark paid a $181 premium September 10, 2004 for Progressive insurance on a 1979 pickup, with liability and UM coverage for Sept 10, 2004–Mar 10, 2005.
- December 22, 2004, Clark added comprehensive and collision, updated address, and added lien holder; Progressive sent a revised declarations page and a $285 premium due January 6, 2005.
- January 11, 2005, Progressive sent a Cancel Notice and a payment coupon demanding $290 total by January 22, 2005 to avoid cancellation; notice stated policy would be canceled if not paid.
- The Cancel Notice and Payment Coupon allowed immediate payment options and indicated payments after January 11 would appear on the next statement.
- January 31, 2005 (mailed February 3, 2005) Progressive sent a document titled 'Your policy was canceled' asserting cancellation as of January 22, 2005 and informing the insured still owed for coverage.
- Clark was involved in a January 28, 2005 accident; both Clark and Progressive sought declaratory judgment on whether coverage existed at the time of the accident.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether cancellation was a present cancellation under Blair | Clark contends the January 11 notice was not a present cancellation. | Progressive argues the language created present cancellation. | Present cancellation not shown; Blair requires true present cancellation. |
| Whether Blair requires ten days’ notice after present cancellation | Clark argues no ten-day window after an ineffective present cancellation. | Progressive argues ten days apply as a general rule for cancellation. | Ten-day notice applies; present cancellation must precede a ten-day window. |
| Whether the first effective cancellation notice occurred on January 31, 2005 (mailed Feb 3, 2005) | Clark argues cancellation was not effective until the future date; accident occurred within period of coverage if cancellation not present. | Progressive claims the Jan 11 notice plus subsequent notices satisfied Blair's requirements. | First effective cancellation notice was Jan 31, 2005 (mailed Feb 3, 2005); accident on Jan 28, 2005 fell within coverage window. |
Key Cases Cited
- Blair v. Perry Co. Mut. Ins. Co., 118 S.W.3d 605 (Mo. banc 2003) (present cancellation required; ten-day rule for nonpayment)
- Stone v. Farm Bureau Town & Country Ins. Co. of Mo., 203 S.W.3d 736 (Mo.App. S.D. 2006) (ten-day notice and present cancellation context)
- MFA Mut. Ins. Co. v. Southwest Baptist College, Inc., 381 S.W.2d 797 (Mo. 1964) (unilateral cancellation must strictly comply with policy)
- Malin v. Netherlands Ins. Co., 219 S.W.143 (Mo. App. 1920) (present cancellation necessity; unequivocal act of cancellation)
- Stickler v. Foremost Signature Ins. Co., 150 S.W.3d 314 (Mo.App. S.D. 2004) (unilateral notice of cancellation not strictly compliant)