Cancellation Notice Valid If Insured Fails To Report Move

Commercial Liability	Cancellation
Policy Construction	Mailing Address

In a case concerning commercial liability insurance, a business insured sued its general liability insurer, requesting coverage for an incident where a man was injured. The insurer rejected liability, claiming the policy was canceled prior to the incident.

It was determined that the insured did not receive the cancellation notice because they had moved before the insurance carrier mailed it. After appealing the trial court's decision, which had found that the policy was not canceled, the appellate court disagreed. The appellate court concluded that the policy was properly canceled through the notice sent prior to the incident.

The policy's cancellation provisions mandated that notice be sent to the insured's address listed on the policy, and the insurer followed these requirements. The court noted that the insured corporation did not notify the insurer of its new address, so the insured never received the notice.

The appellate court reversed the trial court's decision, ruling in favor of the insurance company and against the insured.

Salvant, Respondent v. Landmark Insurance Company, Defendant; Puritan Insurance Company, Appellant. New York Supreme Court, Appellate Division, Second Judicial Department. No. 90-01381. December 9, 1991. CCH 1991-92 Fire and Casualty Cases, Paragraph 3509.