Opinion ID: 70314
Heading Depth: 2
Heading Rank: 2

Heading: Whether Policy Issued After Loss Could Preclude Coverage

Text: 21 Gas Kwick contends that if we find that the 60-day period is computed retrospectively from the date of the loss, we should hold the vacancy exclusion inapplicable because the policy was not delivered to Gas Kwick until after the fire loss. Gas Kwick states that it was unable to predict its own risk and conform its behavior to satisfy coverage under the policy due to the conduct of the defendant. Appellant's Brief at 25. This argument is not persuasive. 22 The binder issued to Gas Kwick on September 12, 1991, provided that THIS BINDING IS A TEMPORARY INSURANCE CONTRACT SUBJECT TO THE CONDITIONS SHOWN ON THE REVERSE SIDE OF THIS FORM.... The insurance is subject to the terms, conditions, and limitations of the policy(ies) in current use by the company. United Pacific issued its policy to Gas Kwick with effective dates of September 15, 1991, through September 15, 1992. Clearly, Gas Kwick seeks the benefit of this effective date of September 15, 1991, since the fire occurred on September 25. Quite simply, Gas Kwick wants the policy's coverage to be effective September 15, 1991, but not its conditions or exclusions (such as the vacancy provision). 23 While it does seem somewhat inequitable to use an exclusion in the policy to deny coverage when the policy was issued after the loss, it would be difficult to fashion an exception for this situation. Insured parties benefit from having an early effective date while the policy is in the process of being issued. The exception argued by Gas Kwick would seemingly place insurers in the situation of providing blanket coverage for all losses without exception until the policy (with its exclusions) is delivered to the insured. We refuse to create such an exception and affirm the district court on this issue.