Opinion ID: 1427181
Heading Depth: 2
Heading Rank: 2

Heading: Grant of Summary Judgment to National Union

Text: Young contends that the trial court erred in granting National Union summary judgment on the basis of the twelve-month time to sue provision in Seven Bar's master policy. In New Mexico, provisions in insurance policies which limit the period within which suit may be brought after damage occurs are valid and enforceable if the time period is reasonable. Sanchez v. Kemper Insurance Co., 96 N.M. 466, 632 P.2d 343 (1981); see Wiseman v. Arrow Freightways, Inc., 89 N.M. 392, 552 P.2d 1240 (Ct.App.), cert. denied, 90 N.M. 9, 558 P.2d 621 (1976). Young maintains that, although the provision is valid, questions of fact exist as to whether National Union waived the limitation and is estopped from asserting the limitation since Young was never provided with a copy of the policy. Waiver is an intentional relinquishment or abandonment of a known right. Cooper v. Albuquerque City Commission, 85 N.M. 786, 518 P.2d 275 (1974). Estoppel arises when an individual has been induced by the conduct of another to do, or forebear from doing, something he would or would not have done but for such conduct. Tome Land & Improvement Co. v. Silva, 83 N.M. 549, 494 P.2d 962 (1972). In order to establish that an insurer has waived notice of loss requirements, and is thereby estopped from asserting them, it must be shown that the insured was misled by conduct of the insurer, upon which the insured relied to his detriment. Gillum v. Southland Life Insurance Co., 70 N.M. 293, 373 P.2d 536 (1961). National Union's failure to provide Young, as loss payee, with a copy of the insurance policy is insufficient, absent more, to constitute a waiver of the time-to-sue provision or to estop National Union from asserting the provision. In New Mexico, if an insured is supplied with a copy of his policy or a memorandum of insurance, then he may rely on the document so supplied to inform him of all his rights and duties under the insurance contract. Homestead Investments, Inc. v. Foundation Reserve Insurance Co., 83 N.M. 242, 490 P.2d 959 (1971). If an insurer gives the impression that all of the material provisions of an insurance contract are contained in a document furnished to the insured by the insurer, then the insurer cannot invoke provisions in the original which were not included in the copy given to the insured. Elliano v. Assurance Co. of America, 3 Cal. App.3d 446, 83 Cal. Rptr. 509 (1970). However, failure of an insurer to provide an individual with a copy of an applicable insurance policy will not, in every case, release the individual from the time-to-sue provisions in the policy. See Zengerle v. Commonwealth Insurance Co., 63 N.M. 454, 321 P.2d 636 (1958). In this case, Young was provided a one-page document entitled Certificate of Insurance, which did not purport to contain an exclusive description of Young's rights and duties under the insurance contract. In fact, the document indicates that its purpose was to inform Young that Seven Bar had obtained insurance coverage on the Cessna. The document also contains the following language: For particulars concerning the limitations, conditions and terms of the coverage you are referred to the original Policy or Policies in the possession of the Assured. We hold that, given the facts presented in the record, National Union's failure to provide Young with a copy of the insurance policy did not result in a waiver by National Union of the time-to-sue limitation in the policy as it applied to Young, nor did it estop National Union from asserting the limitation against Young. Young also alleges that a question of fact exists as to whether the time-to-sue limitation applies to him as loss payee. A person designated as a loss payee is a mere appointee of the insured, and as such is to receive the insurance proceeds to the extent of his interest. J. and J. Appleman, Insurance Law and Practice § 3335 (1970). As an appointee, the rights of a loss payee rise no higher than the rights of the insured. See Tri-State Ins. Co. v. Ford, 120 F. Supp. 118 (D.N.M. 1954). The Oregon Supreme Court, in Transportation Equipment Rentals, Inc. v. Oregon Automobile Insurance Co., 257 Or. 288, 478 P.2d 620 (1970), dealt with a case involving facts remarkably similar to those in the case at bar. In that case, the plaintiff was the owner of a log loader which it leased to a logging company. The logging company insured the loader, listing the plaintiff on the insurance policy as a loss payee instead of an additional insured. The loader was destroyed and plaintiff collected from its own insurance carrier. Plaintiff then sought to recover as loss payee on the defendant's insurance policy. The Oregon court, recognizing that a loss payee is not a party to the insurance contract and therefore cannot recover on his own right, held that the trial court should have held for the defendant as a matter of law. Id. at 302, 478 P.2d at 627. We agree with the Oregon Supreme Court's holding on this issue. As this Court has said: [U]nder a loss-payable clause no contract of insurance is made between the insurer and the loss-payee and the right of recovery of the loss-payee cannot rise above that of the named insured, so that a breach of the conditions of the policy by the insured which precludes his recovery likewise defeats the recovery of his appointee, the loss-payee. Fulwiler v. Traders & General Insurance Co., 59 N.M. 366, 371, 285 P.2d 140, 143 (1955). The trial court did not err in granting National Union's motion for summary judgment. The order of the trial court granting National Union summary judgment and Seven Bar partial summary judgment is affirmed. IT IS SO ORDERED. STOWERS and WALTERS, JJ., concur.