ILNews

COA adopts common-sense rule on providing insurance policies

Back to TopCommentsE-mailPrintBookmark and Share

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.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. I enrolled America's 1st tax-free Health Savings Account (HSA) so you can trust me. I bet 1/3 of my clients were lawyers because they love tax-free deposits, growth and withdrawals or total tax freedom. Most of the time (always) these clients are uninformed about insurance law. Employer-based health insurance is simple if you read the policy. It says, Employers (lawyers) and employees who are working 30-hours-per-week are ELIGIBLE for insurance. Then I show the lawyer the TERMINATION clause which states: When you are no longer ELIGIBLE! Then I ask a closing question (sales term) to the lawyer which is, "If you have a stroke or cancer and become too sick to work can you keep your health insurance?" If the lawyer had dependent children they needed a "Dependent Conversion Privilege" in case their child got sick or hurt which the lawyers never had. Lawyers are pretty easy sales. Save premium, eliminate taxes and build wealth!

  2. Ok, so cheap laughs made about the Christian Right. hardiharhar ... All kidding aside, it is Mohammad's followers who you should be seeking divine protection from. Allahu Akbar But progressives are in denial about that, even as Europe crumbles.

  3. Father's rights? What about a mothers rights? A child's rights? Taking a child from the custody of the mother for political reasons! A miscarriage of justice! What about the welfare of the child? Has anyone considered parent alienation, the father can't erase the mother from the child's life. This child loves the mother and the home in Wisconsin, friends, school and family. It is apparent the father hates his ex-wife more than he loves his child! I hope there will be a Guardian Ad Litem, who will spend time with and get to know the child, BEFORE being brainwashed by the father. This is not just a child! A little person with rights and real needs, a stable home and a parent that cares enough to let this child at least finish the school year, where she is happy and comfortable! Where is the justice?

  4. "The commission will review applications and interview qualified candidates in March and April." Riiiiiight. Would that be the same vaulted process that brought us this result done by "qualified candidates"? http://www.theindianalawyer.com/justices-deny-transfer-to-child-custody-case/PARAMS/article/42774 Perhaps a lottery system more like the draft would be better? And let us not limit it to Indiana attorneys so as to give the untainted a fighting chance?

  5. Steal a little, and they put you in jail. Steal a lot, and they make you king. Bob Dylan ala Samuel Johnson. I had a very similar experience trying to hold due process trampling bureaucrats responsible under the law. Consider this quote and commentary:"'When the president does it, that means it is not illegal,' [Richard] Nixon told his interviewer. Those words were largely seen by the American public -- which continued to hold the ex-president in low esteem -- as a symbol of his unbowed arrogance. Most citizens still wanted to believe that no American citizen, not even the president, is above the law." BWHaahaaahaaa!!!! http://www.philly.com/philly/blogs/attytood/When-the-president-does-it-that-means-it-is-not-illegal.html

ADVERTISEMENT