Gallant Insurance Company v. Isaac

732 N.E.2d 1262 (Ind. App. 2000)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Thompson-Harris is an independent insurance agent. Its authority includes the power to bind P on new insurance policies, as well as interim policy endorsement such as adding a new driver, or changing and adding a vehicle insured under a policy. P became bound to provide insurance coverage at the time and date on which Thompson-Harris faxed or called the required information to P's producing agent, and premiums were paid to Thompson-Harris. D) was already covered by P through Thompson-Harris. On the last day of her insurance coverage, d traded her 1986 Pontiac Fiero for a 1988 Pontiac Grand Prix. D contacted Thompson-Harris and told a Thompson-Harris employee that she must obtain 'full insurance coverage' as a condition to receiving a loan. She also told the employee at Thompson-Harris that her current coverage expires on December 3, 1994, the next day. The Thompson-Harris employee informed D that because their agency was about to close for the weekend, she would immediately 'bind' coverage on the 1988 Grand Prix. D would come into Thompson-Harris on Monday, December 5, 1994, to complete the paperwork and pay the down payment on the premium. A different employee completed the 'Personal Policy Change Request' and stated that the 'effective date of change' was December 3, 1994. This was faxed to Insurance Brokers of Indiana, Inc., on December 3, 1994. On December 4, 1994, D collided with another car in which Davis was a passenger. The next day, as planned, D went to Thompson-Harris and paid $133.00 down payment on the new insurance policy. She also reported the accident. Thompson-Harris notified the State Police that D had insurance coverage at the time of the accident, on December 4, 1994. Later, on or about December 22, 1994, P renewed D's insurance policy, with an effective period of December 6, 1994, to June 6, 1995. P sued for a declaratory judgment regarding its insurance coverage of D's accident. D got the summary judgment, and P appealed. P argues that Thompson-Harris had no actual or apparent authority to renew the insurance policy or orally contract to do so.