Travelers Property Casualty Company of America v. Keluco General Contractors, Gretchen E. Santerre, Country Mutual Insurance Company, and Country Financial
S18828
| Alaska | Jun 27, 2025Background
- Keluco General Contractors obtained a one-year workers’ compensation insurance policy from Travelers Property Casualty Company, expiring in March 2017.
- Travelers claimed to have sent a renewal notice before the expiration but did not obtain a USPS certificate of mailing as required by Alaska law; Keluco asserted it never received the notice.
- An employee was injured after the policy lapsed, revealing the lapse in coverage and leading to claims against Keluco and State-imposed penalties.
- Keluco sued its insurance agent (Santerre) and her employer (Country Mutual) for negligence in failing to communicate the lapse, while the agent filed a third-party complaint against Travelers for failing to properly notify.
- The superior court granted summary judgment holding Travelers in violation of Alaska statutes and in breach of contract, and fixed prejudgment interest from the alleged notice date; Travelers appealed multiple issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Travelers complied with Alaska’s insurance notice statutes (AS 21.36.260/.240) | Travelers failed to get USPS certificate and thus didn’t meet legal notice requirements. | Internal proof-of-mailing is sufficient; substantial compliance or internal records should suffice. | No; actual certificate from USPS is required under Alaska law. |
| Whether breach of contract occurred due to notice failure | Failure to comply with statutory notice incorporated into policy, resulting in continued coverage and obligation to pay claims. | Travelers fulfilled its contractual and statutory obligations via internal procedures. | Affirmed; breach occurred due to statutory notice violation and insurance obligations. |
| Whether dismissal of contribution counterclaim against insurance agent Santerre was error | Dismissing agent hindered allocation of fault for coverage lapse. | Allocation of fault allowed for settled parties; Travelers not prejudiced by dismissal. | Affirmed; dismissal does not preclude fault allocation under Alaska law. |
| When prejudgment interest should begin accruing | From the date Travelers failed to send notice (January 9, 2017). | From the date Travelers was first sued (August 23, 2022). | Reversed; interest accrues from date of employee’s injury (September 20, 2017). |
Key Cases Cited
- Blood v. Kenneth A. Murray Ins., Inc., 151 P.3d 428 (Alaska 2006) (missing USPS certificate excused only if mailing independently verified by USPS)
- Liimatta v. Vest, 45 P.3d 310 (Alaska 2002) (prejudgment interest starts when claimant is entitled to funds under contract)
- Morris v. Morris, 724 P.2d 527 (Alaska 1986) (prejudgment interest accrues from date of breach in contract actions)
- Circle De Lumber Co. v. Humphrey, 130 P.3d 941 (Alaska 2006) (prejudgment interest in workers’ compensation runs from benefit entitlement date)