Court Opinion

ID: 9572748
Source: CourtListenerOpinion
Date Created: 2023-08-21 20:44:15.349031+00
Date Added: 2024-06-11T12:34:00.860743
License: Public Domain

Lewis, J.
(dissenting).
I respectfully disagree with the disposition made of this appeal by the majority opinion.
*350The testimony in this case is undisputed that there was no tender of unearned premiums to the respondent until over two months after the alleged effective date of cancellation and then only after loss to the insured vehicle. Appellant contends that under the McElmurray case, cited in the majority opinion, it was only required to mail notice to the respondent and was not required to return the unearned premium as a condition precedent to cancellation. That case so holds under a similar policy provision. The issue here, however, was not involved in the McElmurray case. There the unearned premium was promptly returned after mailing of the notice. While a return of the unearned premium is not a condition precedent to cancellation under the present policy provision, the policy provides that, if premium adjustment is not made at the time of cancellation, it will be done “as soon as practicable after cancellation becomes effective.” This provision is as much a part of the policy as any other. It means that refund of unearned premiums will be made within a reasonable time after the cancellation becomes effective. When the company claims cancellation under the present policy provisions and fails for an unreasonable length of time to tender a return to the insured of the unearned premiums, the inference may be reasonably drawn that the policy was not in fact canceled; for we cannot assume that the company would deliberately retain in its possession money rightfully belonging to the insured if the policy had in fact been canceled. The company would have a right to explain the delay and relieve itself of the inference. Here the only explanation for the delay in not sooner tendering a refund of the premium is that the agent of appellant was apparently too busy to do so. What length of time would be embraced in the term “as soon as practicable” would depend in a large measure upon the facts of each case. The delay of over two (2) months, without satisfactory explanation, in tendering to respondent the unearned premium was properly considered in determining whether the company could avail itself of the claimed cancellation.
*351All that a company need do, under the present policy provision, to avoid the inference of non cancellation is to abide by the provision which it wrote into the policy, and promptly refund the unearned premium which it, neither in morals or law, has the slightest right to retain after cancellation. The policy provision, if it means anything, imposes upon the company the duty in good conscience to promptly return the premium after cancellation. It must have intended so to do when the provision was inserted in the policy. It is a part of the cancellation provision.
I would hold that, while tender or return of unearned premium under the present policy provision is not a condition precedent to cancellation, such tender or return of premium must be made within a reasonable length of time after the effective date of cancellation; and that, if such is not done within a reasonable length of time, the company would not be permitted to assert the cancellation of the policy.
The remaining issue relates to alleged error in the charge to the jury. The record fails to show preservation of appellant’s right to avail itself of this ground by taking exception thereto at the conclusion of the charge when the jury was excused for that purpose. Section 10-1210, Cumulative Supplement, 1952 Code of Laws of South Carolina. All that the record shows in this connection is that there was a discussion between the Court and Counsel in the absence of the jury concerning exceptions to the charge with no showing of the particulars in which exceptions were made. Since the record does not show that exception was timely made to the charge such ground is deemed waived.
I would affirm the judgment of the lower Court.