Steven Plitt, Expert Witness Steven Plitt, Expert Witness
Insurance Bad Faith Claim Handling Expert Serving Clients Nationwide

BOTH THE INSURANCE COMPANY AND THE INSURANCE BROKER ARE REQUIRED TO PROVIDE THE MORTGAGEE WITH A STATUTORY CANCELLATION NOTICE OF THE POLICY FOR NONPAYMENT OF PREMIUM IN MISSISSIPPI

In James Allen Ins. Brokers v. First Financial Bank, 267 So.3d 759 (Miss. 2019), the Court held that a mortgagee was entitled to coverage under a binder notwithstanding the insured mortgagor's failure to pay the initial policy premium. In this case, the insurance company and broker were liable to the bank as the holder of the mortgage on an insured poultry farm. The farm suffered a fire loss that occurred after the broker had issued an insurance binder covering the farm. The insured did not pay the initial premium for the insurance coverage. Nevertheless, under the terms of the binder, coverage had gone into effect without payment of the premium. Under Mississippi law, the Court found that the insurer and the broker were required to provide notice to the mortgagee or the named creditor loss payee in the binder before cancelling the policy for nonpayment of premium. Because the required notice was not provided, the trial court granted summary judgment in favor of the mortgagee on its claim that the insurance company had failed to pay amounts due under the binder.

No Comments

Leave a comment
Comment Information

Contact Steven Plitt

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Phone: 602-322-4038