Opinion ID: 1445066
Heading Depth: 2
Heading Rank: 1

Heading: The Proof of Loss Condition.

Text: In Davenport v. Republic Insurance Co., 97 Nev. 152, 154, 625 P.2d 574, 575 (1981), we held that absent an express forfeiture provision, an insured's failure to comply with a proof of loss requirement does not preclude recovery, at least where the insured complied substantially with the requirement. The policy here does not expressly impose a forfeiture for failure to submit a proof of loss within the time prescribed. Hence, the critical question is whether appellant substantially complied with the proof of loss requirement. Though we have not previously enunciated a test for determining whether an insured has substantially complied with a proof of loss requirement, other courts offer guidance. We find persuasive the Oregon Supreme Court's decision in Sutton v. Fire Insurance Exchange, 509 P.2d 418, 419 (Or. 1973), in which the court held that the test for substantial compliance is whether the proof submitted by the insured fulfilled the purpose of the proof of loss. In applying this test, the Sutton court adopted the generally accepted view regarding the purpose of a proof of loss requirement: [T]o afford the insurer an adequate opportunity for investigation, to prevent fraud and imposition upon it, and to enable it to form a [sic] intelligent estimate of its rights and liabilities before it is obliged to pay... . to furnish the insurer with the particulars of the loss and all data necessary to determine its liability and the amount thereof. Id. (quoting George J. Couch, Cyclopedia of Insurance Law § 49A:3 (2d ed. rev. 1982)); see also Dixie Warehouse v. Federal Emergency Management Agency, 547 F. Supp. 81 (M.D.N.C. 1982). We adopt the Sutton test for this jurisdiction. Accordingly, we must determine whether any of the documentation submitted by appellant fulfilled the purposes enumerated above. Because the determinative facts are not disputed, we shall consider this question as one of law. In our view, appellant's one-page list fulfills the purpose of a proof of loss requirement, especially when coupled with the prompt notice appellant gave respondent concerning the fire. Although the list was unsigned and unsworn, it was submitted just twenty-seven days after the loss, and it listed appellant's destroyed personal property and the replacement cost for each item claimed. This information was sufficient to enable respondent to investigate appellant's losses, estimate its rights and liabilities, and prevent fraud and unjust claims from being asserted.