Opinion ID: 1624236
Heading Depth: 1
Heading Rank: 2

Heading: can the materiality and the substantial truth of sanford's representation be determined on a motion for summary judgment?

Text: Because Sanford's statement (that he had not been charged with speeding in the past year) was a representation rather than a warranty, it could invalidate the policy only if it was material and not substantially true. National Casualty Co. v. Johnson, 219 Miss. 1, 67 So.2d 865 at 867 (1953). Because the trial court granted summary judgment in favor of FGIC, the issue on appeal is whether summary judgment is appropriate on such issues as the materiality and the substantial truth of a statement. The materiality of a representation is determined by the probable and reasonable effect which truthful answers would have had on the insurer. Appleman, Insurance Law and Practice § 7294. Materiality of a breach of contract is a question of fact. UHS-Qualicare v. Gulf Coast Community Hospital, 525 So.2d 746 (Miss. 1987) (petition for rehearing pending). We have, however, declined to hold that in all cases the question of the materiality of the misrepresentations should be submitted to the jury. Fidelity Mut. Life Ins. Co. v. Miazza, 93 Miss. 422, 438, 48 So. 1017, 1019 (1909). The motion for summary judgment is the functional equivalent of the motion for directed verdict made at the close of all the evidence, which simply occurs at an earlier stage. In considering the motion, the trial court must view all the evidence (admissions in pleadings, depositions, affidavits, answers to interrogatories, etc.) in the light most favorable to the non-movant. Upon this consideration, if the moving party is entitled to judgment as a matter of law, the motion should be granted; otherwise it should be denied. Southern Farm Bureau Casualty Insurance Co. v. Brewer, 507 So.2d 369, 370 (Miss. 1987); Brown v. Credit Center, Inc., 444 So.2d 358, 363 (Miss. 1983). It is in light of this standard that the evidence must be viewed. The primary evidence as to materiality is in FGIC's underwriting rules. Those rules indicate that, as to both preferred and standard risk, an adult would be ineligible if he had more than two (2) motor vehicle violations within twelve (12) months; a youth, however, would be ineligible for either coverage if he had more than one ticket within twelve (12) months. Sanford was twenty (20) years old at the time he applied. FGIC claimed they would have considered a twenty (20) year old to be a youth, although that term is not defined in the underwriting rules. As might be expected, FGIC's witnesses testified that they would have denied coverage if they had known about the violations. Under these circumstances, the evidence presented a fact issue as to materiality of the false statement; i.e., there was a jury question as to the probable and reasonable effect a truthful answer would have had on the insurer's decision. Put another way, it cannot be said that reasonable jurors could not differ as to whether a truthful answer would reasonably have affected FGIC's decision to grant or deny coverage. Further, Sanford's testimony about an accident he had approximately three (3) years prior to applying for the policy does not alter our determination as to the existence of a factual issue. FGIC did not know about that accident when it denied coverage; moreover, since the record does not indicate the date of the accident, there is a fact question as to whether it was recent enough to have affected FGIC's coverage decision. Because there was a fact issue as to materiality, it does not matter whether there was a fact issue as to the substantial truth of Sanford's answer. Where an answer is a representation rather than a warranty, its falsity bars recovery only if it is material. National Cas. Co. v. Johnson, 219 Miss. 1, 6, 67 So.2d 865, 867 (1953). Because there was a genuine issue of material fact, summary judgment was inappropriate. Miss.R.Civ.P. 56. The lower court erred in granting such.