___________ No. 95-3705

___________ 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___________ [UNPUBLISHED] USAA Casualty Insurance * Company, * * Appellee, * * v. * * William A. Striplin, Jr.; * Kimberly Striplin; Donna * Walters, Individually and as *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 Honorab le H. Franklin Waters, Chief Judge, United States 1 

### District Court for the Western District of Arkansas. -2- ___________ Submitted: April 12, 1996 Filed: April 19, 1996

___________ Before FAGG, BOWMAN, and HANSEN, Circuit Judges.

___________ PER CURIAM.

USAA Casu alty Insurance Company (USAA) sought a declaration that an automobile insurance policy it had issued did no t provide coverage for any injuries or claims arising out of a June 1994 one-vehicle accident. The District C ourt granted USAA's motion for summary judgment. Julie Stump, 1 Billy Tobler, and Donna Walters, individually an d as administratrix of the estate of Shawna Walters, appeal. We affirm. The relevant facts are undisputed. William A. Striplin, Jr., w as the named insured under a n automobile insurance policy USAA issued. On April 12, 1994, USAA mailedStriplin a cancellation notice, indicating that his premiumh ad not been paid and that the policy would be canceled fo r nonpayment on April 2 7, unless the premium was received postmarked before the effective date of the cancellation. Based on its April 28 receipt of a check f rom Striplin in an envelope postmarked April 25, USAA issued a let ter dated May 5, stating that the cancellation notice was rescinded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 cancellatio n notice remained in effect and coverage would cease according to the terms of the April 12 cancellation notice. USAA deposite d the check, which was returned on May 12 and agai n on May 19 with notations that th ere were insufficient funds in Striplin's account to cover th e check. By

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letter dated May 27 and postmarked June 4, USAA notified Striplin that his policy was canceled e ffective April 27. Also on June 4, at approximately 1:48 a.m., Striplin's vehicle was involved in anaccident. As a result of injuries sustained in the accident, Shawna Walte rs died. Striplin and the other passengers were injured.
Appellant s argue that the policy was in effect at the time of th e accident, because USAA failed to give sufficient notice of cancellation. We disagree. If canc ellation of an insurance policy is for nonpayment of the premiu m, Arkansas law requires "at least ten (10) days' notice o f cancellation." Ark. Stat. Ann. § 23-89-304(a)(2) (Michie 1992). USAA gav e such n otice on April 12. On May 5, USAA conditionally rescinded th e 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 conditiona l and will not prevent forfeiture of policy for nonpayment of premium), but when S triplin's check failed to clear, the cancellation notice becam e effective. Striplin's policy was therefore not in effect when the acciden t occurred on June 4. Accordingly, we affirm.
A true copy.

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