COA adopts common-sense rule on providing insurance policies

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The Indiana Court of Appeals has adopted a common-sense rule many other courts throughout the country have implemented, in requiring insurers to provide copies of their insurance policies to the insured if they ask for one following a loss.

If that doesn’t happen, the state’s intermediate appellate court holds that the insurer would then be banned from arguing in subsequent litigation that a policy holder didn’t comply with all the terms and couldn’t receive coverage.

The ruling comes today in Auto-Owners Insurance Company v. Gary Hughes, 18A02-1006-PL-659, a case out of Delaware Circuit Court where Judge John Feick had denied a summary judgment from Auto-Owners Insurance that a home fire insurance coverage suit was barred by a one-year statute of limitations.

An arson fire in March 2002 destroyed Gary Hughes’ home in Eaton, and part of his insurance policy with Auto-Owners said that the company couldn’t be sued unless there’s full compliance with all of the policy terms and that the suit must be filed within a year of the loss or damage. Hughes hired a public adjuster as his agent and 11 months later, Auto-Owners denied the claim due to “arson, fraud, misrepresentation, false swearing, and lack of determination of ownership or an insurable interest.” Hughes filed a breach of contract and breach of duty suit in May 2003, 14 months following the loss.

The insurance company argued that Hughes’ suit should be barred because it wasn’t filed within a year, but the trial court twice denied summary judgment motions. The court ruled in favor of Auto-Owners on the punitive damage claim but denied the bad faith claim and one-year limitation defense, and a jury awarded Hughes $166,792.83 in damages.

One of the issues on appeal became whether Hughes had received a copy of his insurance policy following the loss, as he claimed to have requested. He argued that Auto-Owners shouldn’t be able to raise that claim, as it didn’t provide him with a copy, while the insurance company contended it had supplied him with one.

Specifically, the appellate panel found that the principles of equity and fairness create a limited duty to provide a copy of an insurance policy when the insured has requested one, and that failure to discharge that duty would prevent an insurer from asserting noncompliance with policy terms. Citing caselaw from Georgia, Illinois, Missouri, New Jersey, New York, Rhode Island, and Wisconsin, the Hoosier appellate panel adopted that rule as its own.

“We think that this rule reflects the realities of the typical relationship between an insurance company and an insured, at least when the insured is a private individual,” Judge Cale Bradford wrote. “Very few insureds will ever read, much less attempt to understand, their insurance policies, unless of course they happen to suffer a loss. We also venture to guess that very few homeowners will ever take the precaution of storing a copy of their policy at a secure location outside of the home, making it that much more likely that a copy will be destroyed in a loss and not be available when needed most.”

But even with that holding, Hughes lost because the case record proved that Auto-Owners had supplied him with a copy of his policy within a month of his loss in March 2002. Therefore, Auto-Owners should have been able to raise the one-year limitation argument and should have prevailed on that point, the appellate court ruled.

The case was reversed and remanded to the trial court with instructions to enter summary judgment in favor of Auto-Owners.


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  1. If a class action suit or other manner of retribution is possible, count me in. I have email and voicemail from the man. He colluded with opposing counsel, I am certain. My case was damaged so severely it nearly lost me everything and I am still paying dearly.

  2. There's probably a lot of blame that can be cast around for Indiana Tech's abysmal bar passage rate this last February. The folks who decided that Indiana, a state with roughly 16,000 to 18,000 attorneys, needs a fifth law school need to question the motives that drove their support of this project. Others, who have been "strong supporters" of the law school, should likewise ask themselves why they believe this institution should be supported. Is it because it fills some real need in the state? Or is it, instead, nothing more than a resume builder for those who teach there part-time? And others who make excuses for the students' poor performance, especially those who offer nothing more than conspiracy theories to back up their claims--who are they helping? What evidence do they have to support their posturing? Ultimately, though, like most everything in life, whether one succeeds or fails is entirely within one's own hands. At least one student from Indiana Tech proved this when he/she took and passed the February bar. A second Indiana Tech student proved this when they took the bar in another state and passed. As for the remaining 9 who took the bar and didn't pass (apparently, one of the students successfully appealed his/her original score), it's now up to them (and nobody else) to ensure that they pass on their second attempt. These folks should feel no shame; many currently successful practicing attorneys failed the bar exam on their first try. These same attorneys picked themselves up, dusted themselves off, and got back to the rigorous study needed to ensure they would pass on their second go 'round. This is what the Indiana Tech students who didn't pass the first time need to do. Of course, none of this answers such questions as whether Indiana Tech should be accredited by the ABA, whether the school should keep its doors open, or, most importantly, whether it should have even opened its doors in the first place. Those who promoted the idea of a fifth law school in Indiana need to do a lot of soul-searching regarding their decisions. These same people should never be allowed, again, to have a say about the future of legal education in this state or anywhere else. Indiana already has four law schools. That's probably one more than it really needs. But it's more than enough.

  3. This man Steve Hubbard goes on any online post or forum he can find and tries to push his company. He said court reporters would be obsolete a few years ago, yet here we are. How does he have time to search out every single post about court reporters and even spy in private court reporting forums if his company is so successful???? Dude, get a life. And back to what this post was about, I agree that some national firms cause a huge problem.

  4. rensselaer imdiana is doing same thing to children from the judge to attorney and dfs staff they need to be investigated as well

  5. Sex offenders are victims twice, once when they are molested as kids, and again when they repeat the behavior, you never see money spent on helping them do you. That's why this circle continues