Anglin v. Gulf Guar. Life Ins. Co.

Summary

The Mississippi Supreme Court reviewed a summary judgment involving credit life and monthly disability insurance issued to Clyde Anglin. The court held that the insurer's certificates reserved only the right to decline coverage within 90 days, not to cancel coverage after acceptance, and that the insurer improperly cancelled Anglin's credit life coverage. The court reversed the summary judgment and remanded the case; it also held that the estoppel and public-policy issue was procedurally barred on appeal but could be litigated on remand.

Holdings

1. The certificates gave Gulf Guaranty the contractual right to decline coverage within ninety days, not to cancel coverage after acceptance. Because Gulf Guaranty sent cancellation notices for the credit life coverage, it did not exercise the right reserved by the certificates, and summary judgment for Gulf Guaranty was improper.
2. The absence of health questions did not itself prohibit Gulf Guaranty from conditionally accepting coverage and reserving a right to cancel before a claim was filed. However, because Gulf Guaranty reserved only the right to decline coverage, it could not cancel the credit life coverage under these certificates.
3. The court declined to decide the estoppel and public-policy issue because Anglin did not plead or argue that theory in the trial court, making the issue procedurally barred on appeal. The procedural bar did not prevent the parties from litigating the issue on remand because the case was being remanded for trial.

Questions Presented

1. Whether Gulf Guaranty was entitled to summary judgment when it cancelled, rather than declined, Anglin's credit life insurance coverage within the ninety-day period.
2. Whether Mississippi law prohibited Gulf Guaranty from cancelling the credit life coverage based on uninsurability when the coverage was initially issued without requiring health questions.
3. Whether Gulf Guaranty was estopped from cancelling the coverage after Anglin developed a disabling and fatal illness.

Disposition

reversed_and_remanded