Smith v. New Hampshire Indemnity Co.
60 So. 3d 429
Fla. Dist. Ct. App.2011Background
- In August 2007, a father obtained a six‑month auto policy in his son’s name with NHIC for $926.14.
- In January 2008, the father moved the insured to Jacksonville; agent confirmed the address change and potential premium impact.
- On February 6, 2008, premium was still $926.14; an amended declaration reflecting a $321.18 increase was sent the same day.
- A bill for the increased premium was mailed on February 7, 2008; payments remained unpaid through May 2008 when cancellation was issued.
- The policy was canceled on June 13, 2008; Appellant alleged the cancellation violated § 627.7282, Florida Statutes.
- Two days after cancellation, Appellant was injured in an accident; NHIC denied coverage and the complaint for declaratory relief and breach of contract followed, leading to a motion for summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 627.7282 applies to renewals/amendments or only initial applications | Smith contends the statute applies to amendments/renewals that create an incorrect premium and requires the three‑option notice. | NHIC argues the statute applies only to incorrect premiums charged at the time of initial application, not renewals. | § 627.7282 applies only to initial applications; renewal/amendment not covered. |
Key Cases Cited
- Futch v. Wal-Mart Stores, Inc., 988 So.2d 687 (Fla. 1st DCA 2008) (de novo review standard for summary judgment)
- Volusia County v. Aberdeen at Ormond Beach, L.P., 760 So.2d 126 (Fla. 2000) (de novo standard of review in appellate review of summary judgment)
- Sotomayor v. Seminole Casualty Insurance Co., 650 So.2d 663 (Fla. 5th DCA 1995) (notice requirements for incorrect premium in initial issuance context)
- D.R. Horton, Inc.-Jacksonville v. Peyton, 959 So.2d 390 (Fla. 1st DCA 2007) (tipsy coachman rule; affirmed result supported by record)
- GTC, Inc. v. Edgar, 967 So.2d 781 (Fla. 2007) (contract interpretation under Florida law)
- S. Fire Ins. Co. v. S. Sec. Life Ins. Co., 710 So.2d 130 (Fla. 5th DCA 1998) (renewal/nonrenewal distinction in insurance contracts)