Finn v. Dakota Fire Ins. Co.Annotate this Case
Insurer issued an insurance policy to Insured covering his truck. When Insured did not pay the premium amount to renew his policy by the deadline of May 1, Insurer sent Insured a notice of expiration and cancellation summary but offered to reinstate Insured’s coverage without interruption if he would pay the premium by May 18. Insurer wrote a check that was not received by Insured until May 24. On May 14, After Insurer sent the notice of expiration and before Insured’s payment had arrived, Insured was involved in an automobile accident resulting in the total loss of his truck. Insurer denied coverage for the accident, and Insured filed a complaint alleging breach of contract and requesting declaratory relief. The district court determined that there was no automobile insurance policy in effect at the time of Insured’s accident, and therefore, Insurer had no contractual duty to indemnify Insured for his losses. The Supreme Court affirmed, holding that the district court did not err by concluding that Insurer properly cancelled the insurance policy for nonpayment of the renewal premium.