HARTFORD INSURANCE COMPANY OF THE MIDWEST, APPELLANT,
v.
H. SKEET SURRENCY, AS PERSONAL REPRESENTATIVE OF THE ESTATE OF HILTON L. SURRENCY, DECEASED, APPELLEE
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The Florida District Court of Appeal reversed a summary judgment, holding that a statute requiring specific bold-type headings on insurance policies did not apply to a policy with an effective date before the statute's enactment. The court found the policy's effective date was September 20, 1984, prior to the statute's October 1, 1984, effective date.
No, Chapter 84-41 does not apply to insurance policies with an effective date prior to October 1, 1984. The policy in this case became effective on September 20, 1984, and therefore is not subject to the statute's requirements.
“An insurance policy takes effect when the insurance company receives an application and it is accepted.”
Establishes the general rule for when an insurance policy becomes effective.
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Join FLexlaw to unlock all legal intelligenceHartford Insurance Company issued a policy to the Surrency estate. The policy had an effective date of September 20, 1984. A statute, Chapter 84-41, e…
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DAUKSCH, Judge.
Hartford Insurance Company appeals a final summary judgment which determined that Chapter 84-41, Laws of Florida was applicable to an insurance policy issued to appellees. Chapter 84-41, section 627.727, Florida Statutes requires an insurance policy with an effective date on or after October 1, 1984 to have a heading in bold type informing the insured that the policy has uninsured motorist limits less than the bodily injury limits. The policy in this case did not have such a statement and the dispute is over when the policy took effect.
An insurance policy takes effect when the insurance company receives an application and it is accepted. 44 C.J.S. Insurance § 232. The policy in this case clearly states that it took effect September 20, 1984. The effective date is not, as appellee contends, the date a supplemental application is returned because parties can contract for a policy to begin on a particular date. Id. at § 223. A policy takes effect on a specified date even though the contract may be subject to acceptance of an application. Id. at § 340.
The trial court erred in applying Chapter 84-41 and entering summary judgment in favor of appellees. We reverse and remand for the trial court to hold a hearing where the parties will present evidence from which the trial court shall make a finding of whether the appellees made a knowing selection of uninsured motorist coverage.
REVERSED and REMANDED. ORFINGER, J., concurs.
SHARP, C.J., concurs and concurs specially with opinion.
SHARP, Chief Judge,
concurring and concurring specially.
While I agree this case should be reversed and a hearing held to determine whether the Surrencys made a knowing selection of uninsured motorist coverage, I think there is also a factual issue as to whether Hartford adequately notified the Surrencys that it was making a material change in the policy by reducing the amount of uninsured motorist coverage available. The policy originally issued on September 20, 1984, had uninsured motorist coverage equal to the liability coverage. Both parties agree the policy as issued September 20, 1984 would have had $100,-000/$300,000 uninsured motorist coverage, since the Surrencys made no valid uninsured motorist selection, and Hartford elected to issue the policy early. The effect of accepting the Surrencys’ post-October 1, 1984 lower uninsured motorist coverage selection was to materially alter the policy—an event which requires notifying the insured by the insurer. Annotation, Insurance Company as Bound by Greater Coverage in Earlier Policy Where Renewal Policy is Issued Without Calling to Insured’s Attention a Reduction in the Policy Coverage, 91 A.L.R.2d 546 (1963).
Further, it appears to me the record establishes a basis to show that Hartford acted deliberately to deny the Surrencys the benefit of the bold print notice required by Chapter 84-41, § 1, Laws of Florida. The Surrencys were covered by a prior policy issued by Hartford, which did not expire until October 31, 1984. Had they not been rushed by Hartford into terminating the older policy before it expired, they would clearly have been entitled to the notice provided by Chapter 84-41, Laws of Fla. These are circumstances which should be more fully explored on remand.
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Liberty Mut. Ins. Co. v. Scalise, 627 So. 2d 87 (Fla. 1st DCA 1993)…s provisions to the contrary, the application of one seeking insurance constitutes an offer, and a legally enforceable contract is created upon acceptance of the application by the insurance company. See Hartford Ins. Co. of the Midwest v. Surrency, 537 So. 2d 208 (Fla. 5th DCA 1989) (generally, an insurance policy becomes effective when the application is received and accepted by the insur-anee company). On the facts of this case, the application prepared by Putnam on behalf of Scalise was accepted by Libert…
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Campbell v. Household Life Ins. Co., 77 So. 3d 772 (Fla. 5th DCA 2011)…insurance only constitutes an offer, and a legally enforceable contract is not created until the insurer accepts the offer. Liberty Mut. Ins. Co. v. Scalise, 627 So. 2d 87, 91 (Fla. 1st DCA 1993) (citing Hartford Ins. Co. of the Midwest v. Surrency, 537 So. 2d 208 (Fla. 5th DCA 1989) (explaining that an insurance policy takes effect when the insurance company receives an application and it is accepted)). The application itself is not a contract between parties. As with all other contracts, an insurance contra…