Insurers moved for summary judgment dismissing claims against them on the basis that an automobile insurance policy had been properly terminated prior to an accident involving an uninsured motorist.
The court held that the insurer complied with the statutory requirements for delivery of a notice of cancellation under s. 12 of the Statutory Conditions – Automobile Insurance, as the notice was sent by registered mail to the insured’s correct address.
However, a genuine issue requiring trial remained regarding compliance with s. 11 governing effective termination, specifically whether the insurer’s attempted withdrawal of double the monthly premium created the payment default that triggered cancellation.
The court ordered production of banking records to determine whether sufficient funds existed to cover the agreed monthly premium and service charge.
Summary judgment was granted in part and the remaining issue was adjourned pending further evidence.
