LaSalle Cas. Ins. Co. v. AMER. UNDERWRITERS, INC.

269 N.E.2d 563, 148 Ind. App. 675, 1971 Ind. App. LEXIS 498
CourtIndiana Court of Appeals
DecidedMay 19, 1971
Docket1269A257
StatusPublished
Cited by1 cases

This text of 269 N.E.2d 563 (LaSalle Cas. Ins. Co. v. AMER. UNDERWRITERS, INC.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LaSalle Cas. Ins. Co. v. AMER. UNDERWRITERS, INC., 269 N.E.2d 563, 148 Ind. App. 675, 1971 Ind. App. LEXIS 498 (Ind. Ct. App. 1971).

Opinion

148 Ind. App. 675 (1971)
269 N.E.2d 563

LaSALLE CASUALTY INSURANCE COMPANY, ET AL.
v.
AMERICAN UNDERWRITERS, INC., ET AL.

No. 1269A257.

Court of Appeals of Indiana.

Filed May 19, 1971.
Rehearing denied July 15, 1971.

James E. Sandifer, Compton, Clark & Sandifer, John A. Carson, all of Indianapolis, for appellants.

Marshall E. Wiillams, of Indianapolis, for appellee.

WHITE, J.

This is an appeal from a declaratory summary judgment holding that on June 26, 1967, defendant-appellant *676 John B. Cary (hereinafter "Cary") was not covered by a policy of automobile liability insurance theretofore issued by plaintiff-appellee, American Underwriters, Inc. (hereinafter "American") to Cary. The facts are not in dispute. The sole question we are asked to decide is whether, on the undisputed facts before it, the circuit court correctly answered this question of law raised by the motion for summary judgment: Was Cary effectively deleted from the policy's coverage prior to the date of the accident, June 26, 1967?

On November 15, 1964, Cary's motor vehicle driving privilege was suspended by the State of Indiana by reason of his conviction of the offense of operating a motor vehicle while under the influence of intoxicating liquor. At the expiration of the period of suspension, Cary could not obtain a new driver's license until he obtained a policy of automobile liability insurance and had the coverage certified to the Commissioner of the Bureau of Motor Vehicles on a form SR22. It was necessary that he keep this "SR22 coverage" in effect for a period of three years before he could obtain an ordinary driver's license in the ordinary manner, which is to say, without giving prior proof of financial ability to respond in damages for injury to person or property his driving might cause under circumstances rendering him legally liable.[1]

Cary obtained such coverage from American and while it was still in force (under a renewal policy which had been duly certified to the commissioner on a form SR22) Cary was again convicted of operating under the influence of intoxicating liquor. At the time of this second conviction on June 19, 1967, his driver's license was taken from him by the convicting *677 court for the purpose of being sent to the Bureau of Motor Vehicles along with the court's recommendation for suspension. Cary then contacted American's agent, Reliable Insurance Agency, Inc. (hereinafter "Reliable"), concerning what effect the latest suspension might have on his insurance coverage. He was told that his policy would probably be cancelled. As an alternative to cancellation, however, Reliable suggested that he might be able to retain his present insurance on his 1967 Chevrolet (the automobile described in his current SR22) by agreeing to a policy endorsement excluding and eliminating coverage when the car was operated by him and providing coverage only when the automobile was driven by his wife, Dixie S. Cary. Cary requested that such change be made and the endorsement so providing was issued to him on June 21, 1967, to be effective as of June 19, 1967, the date of his conviction.

On June 21, 1967, American, through its agent, Reliable, forwarded to the Commissioner of the Bureau of Motor Vehicles of the State of Indiana a form SR26, Notice of Cancellation of the SR22, Indiana Financial Responsibility Insurance Certificate, previously filed on behalf of Cary by American on or about November 1, 1966. By the terms of the SR26, Notice of Cancellation, American gave notice to the Motor Vehicle Bureau that it was cancelling Cary's insurance policy retroactively to June 19, 1967. Said SR26 was then approved by the Motor Vehicle Bureau on June 28, 1967.

On June 26, 1967, being less than ten (10) days after the date of issuance of the aforementioned SR26, Notice of Cancellation, Cary, while operating the same 1967 Chevrolet automobile described in said policy, was involved in an accidental collision with an automobile being operated by defendant-appellant Ritter who claims Cary is responsible and liable for her bodily injury and damages resulting therefrom.

Appellants, who were defendants below, are MARY E. RITTER, the injured party, LASALLE CASUALTY INSURANCE *678 COMPANY, her liability carrier whose policy contains an uninsured motorist clause obligating it to pay her damages if Cary is uninsured, and Cary.

Appellants contend the attempted cancellation was ineffective because ten days notice was not given to the Commissioner of Motor Vehicles as required by Burns IND. STAT. ANN. § 47-1064, which reads as follows:

"When an insurance carrier has certified a motor vehicle liability policy under this act [§§ 47-1044 — 47-1086, 47-1088] for the purpose of furnishing evidence of future financial responsibility, it shall give ten [10] days' written notice to the commissioner before cancellation of such policy and the policy shall continue in full force and effect until the date of cancellation specified in such notice or until its expiration, except that such a policy subsequently procured and certified shall on the effective date of its certification, terminate the insurance previously certified with respect to any vehicle designated in both certificates."

The trial court apparently adopted American's contention that while this statute prohibits unilateral cancellation by the company, except on ten days notice to the Commissioner of Motor Vehicles, it does not prohibit cancellation without notice at the request of a driver-insured who has surrendered his driver's license, either voluntarily or under compulsion of a conviction which mandates suspension. The rationale of this interpretation is that since the only logical purpose of requiring ten days notice to the commissioner is to give him an opportunity to terminate the insured's driving privilege, unless substitute proof is filed, notice may thus be dispensed with when the driving privilege has already been terminated by conviction and surrender.

American further contends that § 47-1070 expressly requires the commissioner to cancel the SR22 certificate of insurance upon request (without ten days notice) when the insured surrenders his operator's license. In pertinent part that statute reads:

*679 "The commissioner shall upon request cancel any bond or return any certificate of insurance, or the commissioner shall direct and the state treasurer shall return to the person entitled thereto any money or securities, deposited pursuant to this act [§§ 47-1044 — 47-1086, 47-1088] as proof of financial responsibility, or waive the requirement of filing proof of financial responsibility in any of the following events:
* * *
"(3) In the event the person who has given proof of financial responsibility surrenders his operator's or chauffeur's license, registration certificates and registration plates to the commissioner, but the commissioner shall not release such proof in the event any action for damages upon a liability referred to in this act is then pending, or any judgment upon any such liability then outstanding and unsatisfied or in the event the commissioner has received notice that such person has within the period of three [3] months immediately preceding been involved as a driver in any motor vehicle accident. An affidavit of the applicant of the nonexistence of such facts shall be sufficient evidence thereof in the absence of evidence to the contrary in the records of the department."

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Cite This Page — Counsel Stack

Bluebook (online)
269 N.E.2d 563, 148 Ind. App. 675, 1971 Ind. App. LEXIS 498, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lasalle-cas-ins-co-v-amer-underwriters-inc-indctapp-1971.