Equity Insurance Co. v. City of Jenks

Summary

The Supreme Court of Oklahoma held that an insurer's anticipatory notice stating that an automobile insurance policy would cancel if a future installment premium was not paid was ineffective cancellation notice. Under the policy, cancellation for nonpayment required at least ten days' notice after the premium became due and unpaid. The court reversed and remanded the summary judgment entered for Equity Insurance Company.

Holdings

1. A notice stating that an automobile liability policy will cancel in the future if an installment premium is not paid is ineffective notice of cancellation for nonpayment of premium when the policy requires at least ten days' notice of cancellation.
2. Although the material facts were undisputed, summary judgment for Equity was improper because the policy's anticipatory cancellation notice did not effectively cancel the policy before the accident.

Questions Presented

1. Whether an insurer's notice stating that an automobile liability policy will automatically cancel on a future date if an installment premium is not paid constitutes effective notice of cancellation for nonpayment of premium under a policy requiring at least ten days' notice.

Disposition

reversed_and_remanded