AMERICAN BANKERS INSURANCE COMPANY OF FLORIDA, APPELLANT,
v.
TIMOTHY MILLER TERRY, APPELLEE
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American Bankers Insurance Company appeals a judgment for damages, costs, and attorney's fees in a motorcycle theft insurance dispute. The court affirmed, holding that the insurer waived the formal proof of loss requirement by admitting liability upon notice of theft, thereby losing its right to invoke the arbitration clause outside the statutory 60-day period.
The court held that the insurer admitted liability upon receipt of notice of theft on November 1, 1971, thereby waiving the formal proof of loss requirement. Because the insurer did not invoke the arbitration clause within 60 days of that date, it lost the right to compel arbitration.
[1] An insurer's admission of liability, even in an agreed amount, can constitute a waiver of the formal proof of loss requirement.
[2] An insurer waives the filing of proof of loss upon receipt of notice of theft and subsequent offers of settlement.
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Join FLexlaw to unlock all legal intelligence“upon the insurer admitting liability in some agreed amount, such was sufficient to waive the formal proof of loss, and the insurer not making demand for appraisement within sixty days thereafter, the loss became payable at the end of such 60 day period”
Establishes the controlling legal standard from Bear v. New Jersey Insurance Company that an insurer's admission of liability waives proof of loss requirements and creates a 60-day window for invoking appraisement.
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Join FLexlaw to unlock all legal intelligenceOn October 20, 1971, appellee's motorcycle was stolen. He timely notified American Bankers Insurance, his insurer, which admitted receipt on November …
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Defendant-appellant appeals a judgment in favor of plaintiff-appellee for damages, costs, and attorney’s fees.
On October 20, 1971 appellee’s motorcycle was stolen and he timely notified the appellant with whom he had an insurance contract which provided coverage for loss due to theft. Appellant admitted receipt of the above notice on November 1, 1971. On No*564vember 19, 1971 appellee executed a sworn statement regarding the theft. On December 17, 1971 appellant received a letter from appellee’s counsel, advising that appellee was being represented by counsel and requesting all forms necessary to complete the filing of the claim. These forms were mailed directly to appellee who never transmitted them to his counsel. By the latter part of December 1971 a real dispute existed over the value of the motorcycle. On January 11, 1972 appellant wrote appellee’s counsel making a final offer of $600 and further stated that if refused, appellant invoked the arbitration clause in the insurance contract. Appellee filed suit on January 14, 1972. On April 14, 1972 after the cause had been set for trial, appellant moved to compel arbitration. The motion was denied. Again, on May 26, 1972 immediately before trial, appellant moved to compel arbitration and stay the proceedings. The motion was denied. The jury awarded plaintiff $721 in damages and the court awarded him $35 for costs and $1,000 for attorney’s fees. This appeal ensued.
Appellant contends the lower court erred in refusing to compel arbitration.
We disagree and determine that the case of Bear v. New Jersey Insurance Company, 138 Fla. 298, 189 So. 252 (1939) is controlling. In Bear it was held that upon the insurer admitting liability in some agreed amount, such was sufficient to waive the formal proof of loss, and the insurer not making demand for appraisement within sixty days thereafter, the loss became payable at the end of such 60 day period. See also English and American Ins. Co. v. Swain Groves, Inc., Fla.App.1969, 218 So.2d 453.
Turning to the case sub judice, the appellant insurance company at no time denied liability since the receipt of the notice of the theft on November 1, 1971. American Bankers requested only the appellee’s sworn statement of November 19, 1971 and thereafter began to make offers of settlement at various times. Therefore, we hold
that the appellant admitted liability as of November 1, 1971 upon receipt of the notice of theft and waived the filing of proof of loss. It follows then that appellant did not invoke timely the arbitration clause of the policy in its letter of January 11, 1972, the clause providing for a sixty (60) day period which we conclude began to run as of November 1, 1971.
Appellant argues that the appellee’s sworn statement of November 19, 1971 constituted a proof of loss and, consequently, the sixty (60) day period began to run as of that date (November 19, 1971). The subsequent filing of proof of loss by an insured does not operate to set aside the previous waiver of proof of loss by the insurer. Employers’ Liability Assur. Corp. v. Royals Farm Sup., Fla.App.1966, 186 So.2d 317. Once the insurer waives the giving of proof of loss, such waiver is irrevocable. Employers’ Liability Assur. Corp., supra. Therefore, appellant’s argument must fail.
Accordingly, the judgment herein appealed is affirmed.
Affirmed.
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The Cincinnati Ins. Co. v. Palmer, 297 So. 2d 96 (Fla. 4th DCA 1974)…the insurer had admitted its liability for the loss, at least as to the interest of the mortgagee. As such, this constituted a waiver of the requirement of a formal proof of loss. American Bankers Insurance Company of Florida v. Terry, Fla.App.1973, 277 So. 2d 563; English and American Insurance Company v. Swain Groves, Inc., Fla.App.1969, 218 So. 2d 453; Bear v. New Jersey Ins. Co., 1939, 138 Fla. 298, 189 So. 252. The fact that the insurer’s refusal to pay the amount owed by it under the terms of the policy…
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Am. Cap. Assurance Corp. v. Courtney Meadows Apt., L.L.P., 36 So. 3d 704 (Fla. 1st DCA 2010)…demand appraisal under the terms of the policy begins to run from its admittance of liability and coverage. The trial court cited Bear v. New Jersey Insurance Co., 138 Fla. 298, 189 So. 252 (1939); American Bankers Insurance Co. of Florida v. Terry, 277 So. 2d 563 (Fla. 3d DCA 1973); Cincinnati Insurance Co. v. Palmer, 297 So. 2d 96 (Fla. 4th DCA 1974); and Llerena v. Lumbermens Mutual Casualty Co., 379 So. 2d 166 (Fla. 3d DCA 1980), to support its ruling. The trial court found that, by sending the final esti…
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Am. Bankers Ins. Co. OF Fla. v. Terry, 285 So. 2d 28 (Fla. 1973)…Certiorari denied. 277 So. 2d 563. ROBERTS, Acting C. J., and ERVIN, ADKINS, BOYD and McCAIN, JJ., con-…
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
- English & Am. Ins. Co. Ltd. v. Swain Groves, Inc., 218 So. 2d 453 (Fla. 4th DCA 1969)
- Bear v. N.J. Ins. Co., 138 Fla. 298 (Fla. 1939)
- The Emp'rs' Liab. Assurance Corp., Ltd. v. Royals Farm Supply, Inc., 186 So. 2d 317 (Fla. 2d DCA 1966)