Opinion ID: 2525309
Heading Depth: 3
Heading Rank: 2

Heading: Actual Contract of Insurance

Text: In denying Farmers New World Life's first motion for summary judgment, the district court determined that there existed a factual question as to whether a premium had been paid for life insurance coverage for Tylar. The district court, however, granted the insurance company's second motion for summary judgment on the breach of contract claim, concluding that the contract of insurance did not provide coverage for Tylar's death, which occurred four days before the effective date of the policy. If a party moves for summary judgment on the basis that no genuine issue of material fact exists with regard to an element of the nonmoving party's case, the nonmoving party must establish the existence of an issue of fact regarding that element. Farm Credit Bank of Spokane v. Stevenson, 125 Idaho 270, 869 P.2d 1365 (1994). It was the McGilvrays' burden, therefore, to prove in this case that a contract of insurance was in effect on the date of Tylar's death. The facts asserted by Farmers New World Life on the second summary judgment motion were as follows. The application for Tylar's insurance was approved on August 10, 1993, at which time the company prepared a policy to be delivered to the McGilvrays. The policy contained a section entitled Definitions, where issue date of the policy was defined as the effective date for your coverage. The policy specifications page identified the issuance date as August 20, 1993, which was a date selected by the company. There was no evidence that the agent and the McGilvrays had discussed the actual date when the policy would go into effect. Because an insurance policy is a contract, the rights and remedies of the parties are established within the four corners of the policy. Bantz v. Bongard, 124 Idaho 780, 864 P.2d 618 (1993); Kootenai County v. Western Casualty and Surety Co., 113 Idaho 908, 750 P.2d 87 (1988). Where the language of an insurance policy is susceptible to but one meaning, it must be given that effect. Burgess Farms v. New Hampshire Ins. Group, 108 Idaho 831, 702 P.2d 869 (Ct.App.1985). The district court correctly decided that the policy unambiguously stated the effective date of coverage as August 20, 1993. Thus, under the express terms of the policy, the insurance on Tylar's life did not go into effect prior to the date of his death. The McGilvrays argue on appeal that the district court erred in finding that Farmers New World Life had not collected the insurance premium on Tylar's policy because the evidence showed that two payments had been made to the agent prior to the date of Tylar's death. This assertion is relevant to the McGilvrays' claim that the insurance coverage for Tylar went into effect before the date stated in the policy. According to John Patton, a claims manager for Farmers New World Life who testified at the summary judgment hearing, if an insurance policy is physically delivered to the insured and a premium is collected prior to the policy's stated effective date, Farmers New World Life would consider the delivery date to be the effective date of the policy. Relying on Patton's testimony, the McGilvrays argue for coverage prior to August 20, 1993, by virtue of the payments made to their agent. Assuming arguendo that the payments made by the McGilvrays were premiums that were collected for insurance coverage for Tylar, there was no evidence presented to the district court that the policy had ever been delivered. Faced with the undisputed fact that Farmers New World Life had not yet delivered the policy to the McGilvrays, the district court did not err in holding as a matter of law that the contract of insurance never took effect to provide coverage on Tylar's life. Accordingly, the district court's decision awarding summary judgment to Farmers New World Life on the breach of contract claim was appropriate.