___________

No. 95-3705

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USAA Casualty Insurance *

Company, *

*

Appellee, *

*

v. *

*

William A. Striplin, Jr.; *

Kimberly Striplin, *

*

Defendants, *

*

Donna Walters, Individually *

and as Administratrix of the *

Estate of Shawna Walters; *

Julie Stump, *

*

Appellants, *

*

Donald Douglas; Billy Tobler, *

*

Defendants. *

___________ Appeal from the United States

District Court for the

No. 95-4014 Western District of Arkansas.

___________

 [UNPUBLISHED]

USAA Casualty Insurance *

Company, *

*

Appellee, *

*

v. *

*

William A. Striplin, Jr.; *

Kimberly Striplin; Donna *

Walters, Individually and as *

Administratrix of the Estate of *

Shawna Walters; Julie Stump; *

Donald Douglas, *

*

Defendants, *

*

Billy Tobler, *

*

Appellant. *
 The Honorable H. Franklin Waters, Chief Judge, United States 1

District Court for the Western District of Arkansas.

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 Submitted: April 12, 1996

 Filed: April 19, 1996

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Before FAGG, BOWMAN, and HANSEN, Circuit Judges.

___________

PER CURIAM.

USAA Casualty Insurance Company (USAA) sought a declaration that an

automobile insurance policy it had issued did not provide coverage for any

injuries or claims arising out of a June 1994 one-vehicle accident. The

District Court granted USAA's motion for summary judgment. Julie Stump, 1

Billy Tobler, and Donna Walters, individually and as administratrix of the

estate of Shawna Walters, appeal. We affirm.

The relevant facts are undisputed. William A. Striplin, Jr., was the

named insured under an automobile insurance policy USAA issued. On April

12, 1994, USAA mailed Striplin a cancellation notice, indicating that his

premium had not been paid and that the policy would be canceled for

nonpayment on April 27, unless the premium was received postmarked before

the effective date of the cancellation. Based on its April 28 receipt of

a check from Striplin in an envelope postmarked April 25, USAA issued a

letter dated May 5, stating that the cancellation notice was rescinded.

The letter also stated, however, that if the payment failed to clear the

bank, the cancellation notice remained in effect and coverage would cease

according to the terms of the April 12 cancellation notice. USAA deposited

the check, which was returned on May 12 and again on May 19 with notations

that there were insufficient funds in Striplin's account to cover the

check. By
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letter dated May 27 and postmarked June 4, USAA notified Striplin that his

policy was canceled effective April 27. Also on June 4, at approximately

1:48 a.m., Striplin's vehicle was involved in an accident. As a result of

injuries sustained in the accident, Shawna Walters died. Striplin and the

other passengers were injured.

Appellants argue that the policy was in effect at the time of the

accident, because USAA failed to give sufficient notice of cancellation.

We disagree. If cancellation of an insurance policy is for nonpayment of

the premium, Arkansas law requires "at least ten (10) days' notice of

cancellation." Ark. Stat. Ann. § 23-89-304(a)(2) (Michie 1992). USAA gave

such notice on April 12. On May 5, USAA conditionally rescinded the

notice, see Leigh Winham, Inc. v. Reynolds Ins. Agency, 651 S.W.2d 74, 77

(Ark. 1983) (receipt of check as premium payment is regarded as conditional

and will not prevent forfeiture of policy for nonpayment of premium), but

when Striplin's check failed to clear, the cancellation notice became

effective. Striplin's policy was therefore not in effect when the accident

occurred on June 4.

Accordingly, we affirm.

A true copy.

Attest:

CLERK, U.S. COURT OF APPEALS, EIGHTH CIRCUIT.