Opinion ID: 1504721
Heading Depth: 1
Heading Rank: 1

Heading: Hecker case

Text: In 1982, the Heckers, through independent insurance agent Dean Woods (Woods), applied to the Facility for property insurance on a cabin they owned in Ripley County. Upon expiration of the initial one-year policy, the Heckers submitted a renewal application and acquired a new one-year policy. They renewed in like manner for each year thereafter through 1989. The policy in question was issued for a term commencing on November 11, 1989, and ending November 11, 1990. On or about September 14, 1990, the Facility sent a general endorsement notice to the Heckers indicating a $12.00 premium increase. The Heckers promptly paid the increase, but made no subsequent payments, even after expiration of the policy on November 11, 1990. At trial the Facility contended that it sent an Expiration Notice to the Heckers on July 7, 1990. However, the Heckers testified that they received neither a notice of expiration nor a notice of cancellation or nonrenewal. On August 28 or 29, 1991, more than nine months after expiration of the policy, the cabin was destroyed by fire. Woods submitted a loss report and claim to the Facility on behalf of the Heckers. When the Facility denied the claim, the Heckers filed this suit. The trial court held that the insurance policy was automatically renewed and was not subject to termination unless the Facility gave notice of cancellation or notice of nonrenewal. Cook case On January 15, 1988, the Cooks, through independent insurance agent Gene Curtis, applied to the Facility for property insurance to cover their house trailer located in Wayne County. The policy was issued for a period of one year, commencing on January 15, 1988, and ending on January 15, 1989. In early September, 1988, the Facility sent an expiration notice to Curtis setting forth the expiration date of the Cooks' policy. In part, the notice stated: This is the only notice you will receive. Your insured is not being advised of this expiration. Please submit request for renewal no less than 30 days prior to the application. The Facility sent no notice whatsoever to the Cooks, and at no time did Curtis inform the Cooks that he received the expiration notice. Between November 1988, and January 15, 1989, Mr. Cook attempted to contact Curtis seven or eight times to obtain information about renewing his insurance coverage. Cook and Curtis conversed [m]aybe twice, but on neither occasion did Curtis tell Cook that he would submit an application to renew Cook's insurance policy. Instead, Curtis provided Cook with the toll-free telephone number for the Facility's office in St. Louis. Cook called the Facility on Friday, January 13, 1989 to renew his policy, and was informed that his application and premiums would have to be received by the following day. Nevertheless, the Cooks made no attempt to send in an application or premiums. On January 15 or 16, 1989 the Cooks' trailer was completely destroyed by fire. Mr. Cook submitted a loss report and claim with the Facility. The Facility denied the claim, and the Cooks filed this suit. The trial court held that the policy had expired without being renewed, and therefore, the loss was not covered. The court also held, however, that Curtis breached his duty as agent for the Cooks by failing to notify them in a timely manner of his decision not to submit a renewal application on the Cooks' behalf. This failure, the trial court determined, deprived the Cooks of a reasonable opportunity to obtain the services of another broker or otherwise obtain insurance coverage prior to the expiration of the policy.