Opinion ID: 453267
Heading Depth: 3
Heading Rank: 2

Heading: The Effect of the January 24 Mailing

Text: 23 Brazil contends that coverage should have been deemed effective on January 24, the date he mailed the premium; therefore, he argues, he was covered for the January 27 loss. He relies on the mailbox rule, which provides that a contract becomes complete once an offeree has deposited his acceptance in the mail. Restatement (Second) Contracts Sec. 63 (1981). The policy, however, did not state that coverage would become effective upon mailing of the premium. 4 As the December 29 expiration notice stated, the policy would become effective again one day after the date of receipt if the premium payment was made during the 30-day open window period. 24 Payment of a premium after an insurance policy has expired due to nonpayment does not serve to effect coverage for a loss sustained during default and prior to payment. Couch on Insurance 2d (Rev. ed.) Sec. 32:85 (1985). While we have not previously considered the issue of flood insurance coverage upon the lapse of a policy, several district courts have held that a loss occurring after expiration and before renewal will not be covered. Glisson v. Director of FEMA, 1984 Fire & Casualty Cas. (CCH) 833, 834 (S.D.Ala. March 25, 1983); Cooper v. National Flood Insurance Program, 1984 Fire and Casualty Cas. (CCH) 1423, 1424 (S.D.Ala. February 9, 1983); see Gurevitch v. National Flood Insurance Program, 1984 Fire & Casualty Cas. (CCH) 525, 526 (N.D.Cal. September 2, 1983) (despite Program's failure to give notice, insured not entitled to compensation for losses sustained after coverage lapsed due to nonrenewal of premium). We think this reasoning is sound. 25 Therefore, we hold that Brazil's loss on January 27 was not covered even though his payment was received on that same day. This is because by its terms, the renewal did not become effective until the day after the date of receipt, that is, on January 28. In its answer to an interrogatory from Brazil, the Agency stated that it received the payment on January 27. Brazil disputes that fact but has suggested no evidence to support his position. Under Fed.R.Civ.P. 56(c), summary judgment is warranted where there is no genuine issue of material fact. Brazil has not met his burden of establishing that a genuine factual issue exists. 26 The district court correctly interpreted the policy and held that the loss was not covered. We therefore affirm the grant of summary judgment for the Agency. 27 AFFIRMED.