NANCY MIXSON AND BENJAMIN MIXSON, HER HUSBAND, APPELLANTS,
v.
ALLSTATE INSURANCE COMPANY, APPELLEE
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Nancy and Benjamin Mixson appealed a declaratory judgment denying them insurance coverage for an accident that occurred after their policy allegedly lapsed due to nonpayment. The Florida appellate court held that Allstate's unconditional acceptance of a belated premium payment constituted a waiver of the lapse, estoppeling the insurer from denying coverage.
An insurer cannot retain a past-due premium and simultaneously claim the policy has lapsed. Allstate's unconditional acceptance of the April payment constituted a waiver of its right to contend the policy had lapsed, thereby entitling the Mixsons to coverage.
[1] An insurer is estopped from denying coverage when it accepts a belated premium payment.
[2] An insurer's unconditional acceptance of a past-due premium constitutes a waiver of its right to claim that the policy has lapsed.
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Join FLexlaw to unlock all legal intelligence“An insurer cannot retain a past-due premium and at the same time claim that a forfeiture of the policy has occurred.”
This establishes the core principle that an insurer waives its right to deny coverage by accepting a belated premium payment.
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Join FLexlaw to unlock all legal intelligenceBenjamin Mixson obtained an auto liability insurance policy from Allstate in December 1974 and switched to installment payments. After failing to make…
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BASKIN, Judge.
The Mixsons, defendants in an action for declaratory judgment, appeal a final judgment entered by the trial court determining they were not entitled to personal injury protection and uninsured motorist coverage. We hold that acceptance of a belated premium payment by Allstate Insurance Company estops the insurer from denying coverage, and therefore, reverse the trial court.
On December 11, 1974, Benjamin Eugene Mixson contracted for automobile liability insurance policy with Allstate Insurance Company for his wife and himself. Substantial increases in the annual premium caused Mr. Mixson to change his method of payment to ten installments each year. The first payment for the third year of coverage was timely made on December 11, 1976, but then problems began to occur. In response to Mixson’s failure to make installment payments according to schedule, Allstate sent its insured a notice of cancellation for nonpayment. The notice informed Mixson that his account was overdue by one payment and that the policy would be cancelled on March 31st if payment were not received by that date. Despite the notice, Mixson’s next payment was made by a check dated April 15, 1977, and received by Allstate on April 25,1977. Allstate accepted this payment.
Mixson and his wife then filed a claim seeking benefits for injuries the wife suffered in an accident that occurred on April 21st.1 Allstate responded to the claim with a letter stating that the policy had lapsed during the period between March 31st and April 25th and denying coverage for the accident. Allstate did not, however, make any attempt to refund the April payment.
The Mixsons demanded arbitration, and Allstate commenced an action for declaratory judgment concerning the coverage question. After a non-jury trial, the lower court entered judgment finding that the Mixsons were not covered under the policy for the accident of April 21, 1977. We disagree.
An insurer cannot retain a past-due premium and at the same time claim that a forfeiture of the policy has occurred. In this case, the unconditional acceptance of the April payment constituted a waiver of the insurer’s right to contend the policy has lapsed. See Peninsular Life Insurance Co. v. Howard, 72 So. 2d 389 (Fla.1954); Industrial Life & Health Insurance Co. v. Cofield, 110 Fla. 315, 148 So. 549 (Fla.1933); Interstate Fire Insurance Co. v. Hamilton, 356 So. 2d 1348 (Fla. 1st DCA 1978); and Security Life & Trust Co. v. Jones, 202 So. 2d 906 (Fla.2d DCA 1967). Accord, Home Insurance Co. v. Mendelson, 367 So. 2d 1071 (Fla.3d DCA 1979) and Travelers Indemnity Co. of Rhode Island v. Mirlenbrink, 345 So. 2d 417 (Fla.2d DCA 1977).
For the foregoing reasons, we reverse the judgment and remand for proceedings consistent with this opinion.
. Mrs. Mixson had a second accident on April 29, 1977. Allstate did not deny coverage for this claim.
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Progressive Express Ins. Co. v. Michel Camillo and Jean-Paul Camillo, 80 So. 3d 394 (Fla. 4th DCA 2012)…ent premium payment is a waiver of the right to cancel a policy or to refuse reinstatement. See Meeks v. State Farm Mut. Auto. Ins. Co., 460 F. 2d 776, 778 n. 3 (5th Cir.1972) (applying Florida law). For example, in Mixson v. Allstate Insurance Co., 388 So. 2d 608 (Fla. 3d DCA 1980), which involved an auto policy that had been canceled due to the insured’s failure to timely pay policy premiums on an existing policy, the Third District held: “An insurer cannot retain a past-due premium and at the same time cla…
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The Travelers Indem. Co. v. Dana, 434 So. 2d 48 (Fla. 3d DCA 1983)…the insurer, and there was evidence to support the trial court’s finding that the insurer retained the past-due premium and was thus estopped to deny coverage, the judgment for the insured will be affirmed. See Mixson v. Allstate Insurance Company, 388 So. 2d 608 (Fla. 3d DCA 1980). Cf. Travelers Indemnity Company of Rhode Island v. Mirlenbrink, 345 So. 2d 417 (Fla. 3d DCA 1977) (no estoppel where accident for which coverage is sought occurs before payment of past-due premium). Affirmed.…
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WJA Realty Ltd. P'ship v. Emp. Benefit Claims, Inc., 488 So. 2d 121 (Fla. 3d DCA 1986)…o WJA, cf. Travelers Indemnity Co. v. Dana, 434 So. 2d 48 (Fla. 3d DCA 1983) (insurance company estopped from denying coverage where injury occurred after past-due premium paid and insurer retained past-due premium); Mixon v. Allstate Insurance Co., 388 So. 2d 608 (Fla. 3d DCA 1980) (unconditional acceptance of premium payment constituted waiver of insurer’s right to contend policy lapsed), review denied, 397 So. 2d 777 (Fla.1981); second, WJA did not tender a premium payment for July, the month in which the…
Previewing 3 of 6 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Indus. Life & Health Ins. Co. v. Cofield, 110 Fla. 315 (Fla. 1933)
- Sec. Life & Tr. Co. v. Jones, 202 So. 2d 906 (Fla. 2d DCA 1967)
- The Travelers Indem. Co. OF R.I. v. Mirlenbrink, 345 So. 2d 417 (Fla. 2d DCA 1977)
- Peninsular Life Ins. Co. v. Howard, 72 So. 2d 389 (Fla. 1954)
- The Home Ins. Co. v. Mendelson, 367 So. 2d 1071 (Fla. 3d DCA 1979)
- Interstate Fire Ins. Co. v. Hamilton, 356 So. 2d 1348 (Fla. 1st DCA 1978)