White v. State Farm Fire & Casualty Co.

Summary

The Georgia Supreme Court answered certified questions from the Eleventh Circuit concerning a one-year limitations provision in a multiple-line homeowner’s insurance policy. The court held that the Georgia Insurance Commissioner lacked authority to promulgate a rule extending the Standard Fire Policy’s two-year limitations period to non-fire coverage in multiple-line policies. Accordingly, the policy’s one-year limitations period applied to White’s theft-related claim, which was barred as untimely.

Holdings

1. The Insurance Commissioner exceeded his legal authority by promulgating Rule 120-2-20-.02 to require the Standard Fire Policy's two-year limitation period for nonfire coverage, including theft coverage, in multiple-line policies.
2. The one-year limitation period in White's policy was enforceable as to theft coverage, and White's claim was barred because he did not initiate it within that period.

Questions Presented

1. Whether the Georgia Insurance Commissioner had authority to promulgate Ga. Comp. R. & Regs. r. 120-2-20-.02, which required first-party property policies to provide a limitation period no less favorable than the two-year period in Georgia's Standard Fire Policy.
2. Whether the one-year limitation period in White's multiple-line policy was enforceable as to theft-related coverage and barred White's claim.

Disposition

other