Court Opinion

ID: 9855653
Source: CourtListenerOpinion
Date Created: 2023-09-24 06:28:54.432328+00
Date Added: 2024-06-11T09:36:17.191926
License: Public Domain

Chief Justice TOAL
dissenting: *123ruling on the basis that the insurer failed to refund insured’s unearned premiums according to S.C.Code Ann. § 38-39-90 (2002). I disagree.
Section 38-39-90(e) provides in part, the following:
Whenever an insurance contract is canceled, the insurer shall return whatever gross unearned premiums are due under the insurance contract to the premium service company which financed the premium for the account of the insured.
According to the plain meaning of this statute, in my opinion, an insurer’s duty to refund unearned premiums is not a precondition for cancellation. Although the statute requires that a refund be tendered, the plain meaning of the statute requires the insurer to refund the unearned premiums after cancellation. In my opinion, therefore, the statute makes the insurer liable for unearned premiums. It does not, however, operate to invalidate the insurer’s prior cancellation of coverage.
Accordingly, I would reverse and hold that insurer’s cancellation of coverage was effective despite insurer’s failure to tender the refund as required in S.C.Code Ann. § 38-39-90(e).
ORDER
Appellants Travelers Insurance Company and AFCO Credit Corporation have petitioned this Court for rehearing in this matter. We deny the petitions but withdraw our former opinion and substitute the attached opinion. The only change is as follows.
The opinion currently states:
Once Finance Company requested cancellation, it had the right to demand repayment of the unearned premium. The fact that it did not do so in this case does not vitiate the requirements placed on Carrier under the statute.
The underscored language is replaced by the addition of footnote 6 which reads as follows:
*124Finance Company’s notice of cancellation in fact includes a demand for return of the unearned premium.
IT IS SO ORDERED.
s/ James E. Moore, J.
s/ John H. Waller, Jr., J.
s/ E.C. Burnett, III, J.
s/ Costa M. Pleicones, J.
While I agree with the change made to the opinion and the denial of the petition for rehearing filed by AFCO Credit Corporation, I would grant the petition for rehearing filed by Travelers Insurance Company.
s/ Jean H. Toal, C.J.